SPACE COAST DAILY TV: How To Make a Profit In Real Estate and Pay No Capital Gains Tax
By Bobby Freeman, Realtor // July 24, 2017
SPACE COAST DAILY TV REAL ESTATE SHOW
SPACE COAST DAILY TV: Space Coast Daily Real Estate TV Host and Brevard County Realtor Bobby Freeman talks about avoiding the capital gains tax when selling your home and highlights the local real estate market.
BREVARD COUNTY, FLORIDA – For anyone that purchased a primary home in the last five years and is looking to sell for a profit needs to know that there is a very good chance you will pay nothing in capital gains tax.
A capital gains tax is basically the tax one pays on the profit minus expenses.
There’s an important tax exclusion on capital gains when selling your home. A single home owner can exclude up to $250,000 in profit and a married homeowner that files jointly can exclude up to $500,000 of the profit.
Here are the requirements to claim this tax exclusion according to www.irs.gov:
• You owned the home and used it as your main home during at least 2 of the last 5 years before the date of sale.
• You didn’t acquire the home through a like-kind exchange (also known as a 1031 exchange), during the past 5 years.
• You didn’t claim any exclusion for the sale of a home that occurred during a 2-year period ending on the date of the sale of the home, the gain from which you now want to exclude.
Also, home improvements can be added to the initial sales price of your home to give you the adjusted cost. These improvements can include roof replacement and remodeling a kitchen. General maintenance repairs such as fixing a toilet is not tax exempt.
I strongly advise anyone selling Florida real estate to consult a Florida Tax Accountant for professional advice regarding tax exclusions.
For more information, consult a tax advisor or IRS Publication 523 here.
Recap of the Brevard County Residential Report for June 2017 Compared to 2016:
• Closed Sales stayed the same for June 2017 in which the number of units closed was 1033 compared to 1033 in June 2016, with a decrease in cash sales of -21.6% compared to June 2016.
• New Pending Sales are up 1.6% and New Listings are up 4.6%.
• The Median Sales Price for Brevard Single Family homes is up 15.8% to $220,000 compared to a year ago, which was $189,925.
• Months Supply of Inventory is stayed the same at 2.7 months compared to 2.7 months in June 2016.
• Traditional Sales are up 3.1%, with a median sales price of $222,825.
• Foreclosure/REO Sales are down -45.2%, with a median sales price of $149,125.
• Short Sale Closings are down -16.7%, with a median sales price of $135,000.
Recap of the Brevard County Townhouses/Condos for June 2017 compared to June 2016:
• Closed Sales are down -3.0% for June 2017 in which the number of units closed was 256 compared to 264 in June 2016, with a decrease in cash sales of -6.4% compared to June 2016.
• New Pending Sales are up 7.9% and New Listings are down -9.6%.
• Median Sales Price for Townhomes/Condos is up 16.1% to $162,500 compared to a year ago, which was $140,000.
• Months Supply of Inventory is down -10.5% to 3.4 months compared to 3.8 months in June 2016.
• Traditional Sales are up 0.4%, with a median sales price of $156,000.
• Foreclosure/REO Sales are down 66.7% and the median sales price was $94,200.
• Short Sale Closings are down -100%, as there were no short sale closings in June of 2017.
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