All figures as of 5/1/08 year to date, (YTD), MLS data.
PENALTY FREE WITHDRAWAL FROM IRA:
$10,000 penalty free withdrawal for first-time home buyers A first-time buyer is an individual who has had no ownership interest in a home during the previous two year period Buyer has 120 days to spend the withdrawal on the acquisition of the home
What is a 1031 exchange? A 1031 exchange is a tax-deferred exchange of "like kind" INVESTMENT property which is held for investment or for productive use in a trade or business. Section 1031 of the Internal Revenue Code provides one of the best tax strategies for deferring the capital gain tax that would ordinarily be assessed on the sale of investment property. By utilizing an exchange to defer the capital gain tax, the property owner has substantially more equity to reinvest in a replacement property. Rental or investment property owners can accomplish virtually any investment objective with tax deferred exchanges including: 1) greater leverage, 2) diversification, 3) consolidation, 4) cash flow, 5) management relief, and 6) increased depreciation.
Interested in learning more about 1031 exchanges? Give me a call at 602-315-6333, or send email to: JeffTallman@ScottsdaleCondos.com
Couples filing a joint tax return can exclude up to $500,000 of gain on the sale of their principal residence, and single filers can exclude up to $250,000 Gains in excess of $500,000 are taxed at the "new" federal capital gain rate of 20% (as opposed to 28%) State of Arizona capital gain rate is approx 6% New rates and rules effective for dispositions on or after May 7, 1997 Home must have been the primary residence of both spouses for 2 of the last 5 years $500,000 exclusion available once every 2 years Vacation homes and second homes do not qualify If the home was used as a rental and a primary residence during ownership, any depreciation taken after May 7, 1997 must be recognized on the sale
