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Capital Gains On Your Primary Residence?

If you sell your main home or primary residence, up to $250,000 may be excluded from your income.  The amount jumps up to$500,000 for married couples that sell their primary residence. In order to meet the primary residence exclusion requirement you must meet the following requirements: You owned the residence for any two of the last five years. You occupied your residence for any two of the last five years. You haven’t used the capital gains exclusion within the last two years. If you are married you need to meet the following requirements: You are married and file a joint return for the year. Either you or your spouse has owned the residence for at least two out of the last five years. Both you and your spouse have used the home as your principal residence for two out of the last five years. Neither you nor your spouse has used the tax exclusion within the last two years. The required 2 years ...

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Rental Income: Here Is The Bad News

Attention owners of rental homes and properties . . . You aren’t going to like one of the tax changes that appears to be on the horizon for 2011 as part of the revenue offset of the recent Small Business Jobs and Credit Act of 2010. The legislation would require an IRS Form 1099 for rental property expense payments.  The provision would subject all recipients of rental income from real estate to the 1099 reporting requirement, with the exception for taxpayers that rent their principal residence on a temporary basis, receive minimal amount of rental income, or would experience a hardship under this provision.  This provision would give the Department of Treasury the authority to determine what constitutes a “minimal amount” of rental income and what constitutes a “hardship.”  According to JCT, this provision would increase revenue by $2.546 billion over 10 years.  (source:  www.gop.gov/bill/111/2/hr5297senateamendment) In simple terms, the bill makes recipients of rental income fall underneath the same information ...

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