Popcorn is great with a movie or possibly for stringing around an old-fashioned Christmas tree, but it’s a little less universally loved when it’s applied to the ceiling as a texture. “Popcorn
Dont Miss Out On One Of The Most Valuable Deductions Ever When You Sell Your House
Dated: April 3 2017
Don't miss out on one of the most valuable deductions ever when you sell your house!
This is one of the most generous tax incentives our great government has to offer.
Here's why: If you bought your house for $200,000 in June of 2014 and you decide to sell it today, it's worth quite a bit more than when you bought it because our market has gone WAY up over the past 2 years (It's now worth on average of $244,000 in Pinellas County).
Traditionally, the profit or "gain" on that additional $44,000 is considered income to the IRS and you have to pay taxes on that gain. This is the exception to the rule.
To qualify for the home sale exclusion, you must own and occupy the home as your principal residence for at least two years before you sell it. The two-year rule is really quite generous, since most people live in their home at least that long before they sell it. (On average, Americans move once every seven years.) By wisely using the exclusion, you can buy and sell many homes over the years and avoid any income taxes on your profits.
One aspect of the exclusion that can be confusing is that ownership and use of the home don’t need to occur at the same time. As long as you have at least two years of ownership and two years of use during the five years before you sell the home, the ownership and use can occur at different times.
If you purchased your home more than 2 years ago and have occupied it for at least 2 of the past 5 years, you qualify!