2007-01-31 01:40:15 · 4 answers · asked by tightrope33 1 in Business & Finance ➔ Taxes ➔ United States
The law you refer to was repealed. It was replaced with a law that allows you to exclude the gain on the sale of a home (250,0000 of gain or 500,000 if married filing joint) if you live in it 2 out of 5 years.
2007-01-31 01:47:36 · answer #1 · answered by Nusha 5 · 2⤊ 0⤋
You can sell a home tax-free every two years!
If you sell your principal residence and have lived in it for 2 of the 5 years immediately prior to the sale you can exclude any gain from taxes up to $250k if single or $500k if married . You cannot claim the exemption if you've already claimed it within 2 years, but if you're one day over 2 years you're good to go again.
The old rules of deferral of the gain and the one-time exclusion past age 55 were tossed out about a decade ago.
And just to clear something up -- the current exclusion rule was enacted during the Clinton administration. It is NOT a "present" from the current Republican administration!
2007-01-31 01:55:09 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
No longer exists.
This was replaced with a law that says that you can have up to $250,000 in capital gains (per owner) tax free as long as you owned and lived in the house at least 2 of the last 5 years.
So, if you own the house yourself, have lived it in at least 2 years (and haven't been away from it for more than 3) and have made less than $250,000, there is no tax owed. If you made more than $250,000, you'll have to pay the extra.
2007-01-31 01:49:11 · answer #3 · answered by Jay 7 · 1⤊ 0⤋
You're thinking of the Capitol Gains tax which was eliminated under Bush and the Repubs. It will soon be repealed by the Dems.
2007-01-31 01:48:52 · answer #4 · answered by Curt 4 · 0⤊ 1⤋