Realtor JANICE BROWN OF FRED SANDS RESIDENTIAL REAL (818-683-1515) in Pasadena, California says there are ways to limit capital gains taxes should you sell your current home at a profit. For one, the IRS will allow you to defer capital gains taxes indefinitely should you buy a replacement home that is at least as expensive as your old residence two years before or after your sale. Another way to rut down on what you owe is by applying the cost of fixing up your old place to ready it for the market. Finally, if you are 55 or over, you’re exempt from capital gains taxes on the first $125,000 you net from selling your old home. She suggests you check with your accountant to make sure you get the best value going.
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by Selena Hill