Most of my clients profit from selling their homes, and they often have questions about capital gains tax. When you sell your primary residence, you are not taxed on your profit if (1) you have lived in the home for two out of the last five years and (2) your gain does not exceed $250,000 as a single taxpayer or $500,000 as a married couple filing jointly. Gains above these limits are taxed at the current rate of 15% for higher income taxpayers and 5% for lower income taxpayers. In 2008 the 15% rate will continue for higher income taxpayers; while the 5% lower income rate will drop to 0% for the 2008 tax year only. On January 1, 2009, the long-term capital gains tax rates will once again be 15% and 5% through 2010. Homeowners can use this tax-free provision every two years. As set forth in the American Job Creation Act of 2004, properties converted from a 1031 exchange property into a primary residence must be held and used as a primary residence for at least five years to qualify for the tax exemption. Consult your tax accountant for more detailed information regarding your particular circumstance.

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Drew Coleman
The Hasson Company Realtors
15400 SW Boones Ferry Road
Lake Oswego, OR 97035
Cell: 503-534-1550
Fax: 503-212-5150
Office: 503-635-9801
DrewColeman@NUMBER1EXPERT.com

Top-producing full time real estate professional since 2001. Headquartered in Lake Oswego, Oregon at America's top-producing real estate company on a per-agent basis, The Hasson Company Realtors. Recognized as one of Portland's top agents based on standing in highest classification of the Metropolitan area's "Million Dollar Club" as well as holding the ABR, GRI, E-Pro, CRS, CNHS, & RCC designations. Areas of expertise include Urban and Suburban Portland, Oregon, including Portland, Lake Oswego, Beaverton, Tigard, Tualatin, West Linn, Clackamas, Milwaukie, Wilsonville, Aloha, Hillsboro, Newberg and Sherwood. Seeks to streamline and modernize the real estate process through the use of innovative techniques, technologies, and marketing strategies. New construction, luxury real estate, one-level homes, first-time home purchases, property marketing, relocation, estate sales, investment real estate, condominiums, move-up transactions, move-down transactions, rehabbing, land, development, senior real estate.

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