Posted by AnnNC on February 13, 2001 at 18:26:35:
NT
What was the BIG CHANGE in 1997 RE TAX law?/nt - Posted by AnnNC
Posted by AnnNC on February 11, 2001 at 20:34:03:
nt
Re: What was the BIG CHANGE in 1997 RE TAX law?/nt - Posted by B.L.Renfrow
Posted by B.L.Renfrow on February 11, 2001 at 23:38:53:
Are you referring to the part about tax on profit from the sale of one’s primary residence? The rule now is that if you occupied the property for an aggregate of 2 out of the last 5 years, there’s no tax on profit up to $250k ($500k for a married couple) from a sale. You can do this as many times as you want, but not more often than once every two years.
I don’t recall exactly what the rule was previously. Something about you had a certain time period to use any profit for purchase of a replacement residence, otherwise you’d pay capital gains tax on the profit.
I think this is correct…someone feel free to jump in if I’m wrong.
Brian (NY)
(OK, do I get the prize? Was this a contest?)
Re: What was the BIG CHANGE in 1997 RE TAX law?/nt - Posted by AnnNC
Posted by AnnNC on February 12, 2001 at 10:43:41:
No, it’s like the clean plate club: fame is local and
short-lived. But all good and kind answers get a permanent warm place in MY heart: maybe I’ll give out door prizes at the convention.
Thanks for your reply–I don’t know if that was “the”
change, but in reference to that, I think that was
what was formerly called the “over 55 rule” where you could sell a personal residence only once after age 55, and not pay taxes, and that now there is no age limit and you can do it multi times, within the guidelines you stated. Am I right?
Plus I don’t know if there was anything else about 1997.and I’m not saying I’m 100% sure about the
elimination of age requirement, but I think that’s what I heard. I guess I need a good REI tax ref book.
Ann
Re: What was the BIG CHANGE in 1997 RE TAX law?/nt - Posted by Dave T
Posted by Dave T on February 12, 2001 at 15:26:35:
The tax provisions you reference apply to the sale of your primary residence. The tax changes in 1997 eliminated the one-time $125K capital gains exclusion for owners 55 and older, eliminated the rollover residence replacement rules, and capped the maximum capital gains rate at 20%.
We now have a new two-year rule that provides each taxpayer a capital gains exclusion of up to $250K on the sale of their principal residence.
Does this answer your question?