Comments on: How Taxes can Dramatically Affect Your Real Estate Gains http://www.followsteph.com/2005/06/07/how-taxes-can-dramatically-affect-your-real-estate-gains/ Follow Steph through his real estate and business journeys Thu, 29 Jul 2010 14:02:53 -0400 http://wordpress.org/?v=2.8.5 hourly 1 By: FollowSteph.com - Biggest Stock Market Tip http://www.followsteph.com/2005/06/07/how-taxes-can-dramatically-affect-your-real-estate-gains/comment-page-1/#comment-45152 FollowSteph.com - Biggest Stock Market Tip Thu, 01 May 2008 02:28:49 +0000 http://www.followsteph.com/?p=3#comment-45152 [...] and acquiring it, you’ll make sure it’s a valuable asset for a longer time frame. Buying and selling stocks quickly will dramatically reduce you’re returns, more than you can imagine. It’s worth picking solid stocks, or should I say coffee shops now [...] [...] and acquiring it, you’ll make sure it’s a valuable asset for a longer time frame. Buying and selling stocks quickly will dramatically reduce you’re returns, more than you can imagine. It’s worth picking solid stocks, or should I say coffee shops now [...]

]]> By: Thomas Jones http://www.followsteph.com/2005/06/07/how-taxes-can-dramatically-affect-your-real-estate-gains/comment-page-1/#comment-5914 Thomas Jones Mon, 19 Feb 2007 19:52:31 +0000 http://www.followsteph.com/?p=3#comment-5914 Amateur real-estate investors make a lot of mistakes because they misinterpret tax issues on their investment. In an earlier column, I addressed two tax codes -- Internal Revenue Code 121 and Internal Revenue Code 1031 -- that are at the heart of the problem. Under IRS Code 121, homeowners can keep a gain of up to $250,000 ($500,000 per married couple filing jointly) tax free when selling their principal residence. To qualify for the tax exemption, you must have owned and occupied your residence for two of the five years before the sale. IRS Code 1031 is a way to defer paying the capital gains tax on the sale of an investment property. Generally, the law allows the exchange of an investment property for another investment property of the same or greater value. Amateur real-estate investors make a lot of mistakes because they misinterpret tax issues on their investment.

In an earlier column, I addressed two tax codes — Internal Revenue Code 121 and Internal Revenue Code 1031 — that are at the heart of the problem.

Under IRS Code 121, homeowners can keep a gain of up to $250,000 ($500,000 per married couple filing jointly) tax free when selling their principal residence. To qualify for the tax exemption, you must have owned and occupied your residence for two of the five years before the sale.

IRS Code 1031 is a way to defer paying the capital gains tax on the sale of an investment property. Generally, the law allows the exchange of an investment property for another investment property of the same or greater value.

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