Sale of Your Home

A. If you live in the home you own as your primary residence for two of the last five years before you sell it, you can avoid paying capital gains tax when you sell your home, according to a new IRS rule. This makes it very easy for most providers to avoid this tax.

B. Tax on the depreciation claimed after May 5, 1997 is still due when the home is sold. You should always claim depreciation deductions on your home. Providers who do not claim home depreciation will still owe tax on it when they sell their home.

C. Be sure to contact us before you sell your home so we can help you calculate the portion of the gain from the sale that will be taxable, and then help you determine how much you need to set aside toward the tax that will be due from the gain.

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