of Principal Residence
Tax on the sale of a personal residence
up to $500,000 of gain may be tax free. This exclusion is available every
two years. After selling your present home, move to the shore, establish
residence for two years and exclude up to $500,000 in gain.
of Income Tax on Like Kind Exchanges
Under certain circumstances, if one investment
property is exchanged for another investment property, income taxes may
be deferred until the sale of the second property.
Gains - Ownership Period
Effective January 1, 1998, favorable
capital gains on tax rates are available for real estate held longer than
twelve months. This is a change from the prior rule, which required an
eighteen month ownership period.
Income Taxes with an Installment Sale
Holding a mortgage for your Buyer may
allow you to defer paying income taxes over the period you receive the
payments. This can be especially attractive to a Seller without a mortgage
or a very low mortgage. The Seller would receive monthly mortgage payments
from the Buyer. Many Sellers prefer this arrangement to provide steady
income for retirement with an attractive interest rate.