Friday August 1, 2008 - Summer Tax Tips: Sale of Your Primary Residence

[0:00] ..." Summer tax tips here on WBZ news radio 1030 with certified financial planner -- and today we're looking at the tax implications. All the selling your primary residence even. If you're not selling it at the price you hope to her."...

[0:15] ..." But -- played out spring and summer usually busy times -- real estate sales usually but this has been a slow summer but there have been some sales. Normally people want to be settled before school starts in September says you do inside your house this year gather all your house paperwork. You did save it all rank them and you're gonna need it when you file your tax return next year. You'll need to go way back to when you first purchased a house and then begin to search for the documents for any major improvements be made to the house like in Newport or storm windows. There was an old rule that was when selling your home and then you're gonna buy a new one. He did not -- capital gains and any profit you made if you bought another home within two years at the same price. Congress came up with a tax break that affects all primary residence if you're home is being your primary residence for two out the last five years you can exclude from capital gain. Up to 500000 dollars if you're married filing jointly"...

[2:15] ..." so that too but you know this is meant for a primary residence not for the house indicate."...

[2:20] ..." okay check the website for all of these information on this summer tax tips series. Have a good weekend will more tomorrow here on WBZ news radio ten there."...

[0:00]" Summer tax tips here on WBZ news radio 1030 with certified financial planner -- and today we're looking at the tax implications. All the selling your primary residence even. If you're not selling it at the price you hope to her."

[0:15]" But -- played out spring and summer usually busy times -- real estate sales usually but this has been a slow summer but there have been some sales. Normally people want to be settled before school starts in September says you do inside your house this year gather all your house paperwork. You did save it all rank them and you're gonna need it when you file your tax return next year. You'll need to go way back to when you first purchased a house and then begin to search for the documents for any major improvements be made to the house like in Newport or storm windows. There was an old rule that was when selling your home and then you're gonna buy a new one. He did not -- capital gains and any profit you made if you bought another home within two years at the same price. Congress came up with a tax break that affects all primary residence if you're home is being your primary residence for two out the last five years you can exclude from capital gain. Up to 500000 dollars if you're married filing jointly and half -- that if you're single 250000. You're eligible to use this tax break every two years that's great but it was really meant for older taxpayers Anthony were downsizing example. You buy it a couple won a place in Jamaica Plain 1980 they paid 75000. For grand old Victorian. Those are the things they -- for the day 128 years later their families six is down to just mom and dad again. No need for big house at five bedrooms they put them market and even in this -- market -- sells for 700000 dollars. A potential capital gain of 625000. But during the last twenty years they added two car garage storm windows two bathrooms this unfortunate paved driveway. -- all those improvements and it adds another 150000. Dollars to the bases of the house the cost of the house of -- a point of sale so now it's 245000. They cancer tracked this summer from the selling price along with the real -- is the to get the number. 450000. Which would they will all know capital gains because it's under the 500000 dollar exclusion so that they admit it. Keep your documents on any major improvements you made your home. And -- so that too but you know this is meant for a primary residence not for the house indicate."

[2:19]" Right okay check the website for all of these information on this summer tax tips series. Have a good weekend will more tomorrow here on WBZ news radio ten there."