Digesting the 2008 Housing Recovery Act
August 4, 2008 by Bob Schenkenberger · 2 Comments
I just received a great comment on my last article outlining the 2008 Housing and Economic Recovery Act.
There is one big change that effects Seller’s and the amount of capital Gains Tax they may have to pay. Buried deep on page 690 of the 694 page law is an important change to the Capital Gains Exclusion rule. This rule is modified from allowing Seller’s to exclude capital gains on their home sale of up to $250k, or $500k for those filing jointly, to a formula that reduces this exclusion. This is Bad, Very, Very BAD!
As this new law is further digested, I wonder what other “Little Surprises” we will find?
Thanks Brad Nix, for the info! To check out the formula, and other details check out this article.
http://maxsell.net/housing-and-economic-recovery-act-of-2008/
Bob has been an active REALTOR for Over 20 years. During this time, he has closed over 500 transactions, and has been the broker of record for 1000's more. Bob can be reached via email (bob@gethomedenver.com) or phone (303.770.1180.)
I’m not so sure it’s all VERY BAD news. This change does allow Sellers who had to move prior to 2 years to actually avoid any gains. (granted there may not be any with such a short move, but at least there is an option to avoid paying gains now for a forced early move)
I am still digesting this whole rule change and hope to have a thorough post coming soon.
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In any 694 page document from the senate, there are bound to be a few zingers. I didn’t know about this one, but I am not surprised.
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