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About the Huntsville, Madison, Hampton Cove, Athens, & Decatur Alabama Area Request our Free Huntsville, Madison and Hampton Cove Relocation Package. It's packed full of useful and important information about the Huntsville, Madison, Hampton Cove, Athens, & Decatur Alabama area. Don't move here without it! Remember: we'll send it to you for free and without obligation. Just fill out the form and we will send it right out... |  | | | U.S. Space & Rocket Center in Huntsville Alabama! | |
It's our job to know EVERYTHING about Huntsville, Madison, Hampton Cove, Athens, & Decatur! Ask us any question. Or request a FREE information package. There's no obligation, and we promise to get back to you quickly... Mayor Loretta Spencer gives her 2007 State of the City Address for Huntsville Alabama on Video
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Tax Considerations >Taxable Profits
If you are thinking of selling your home and your house has risen in value since you purchased it, or you have accumulated a lot of deferred profit from previous sales, the Taxpayer Relief Act passed in 1997 could be of tremendous value.
Prior to this law, when a homeowner moved to a smaller home, relocated to a less costly area, or made a decision to rent, they were left with unfavorable tax consequences. The old tax law allowed people who sold their homes to defer tax on any profit by buying a replacement home of at least equal value within two years. At age 55, they could permanently escape tax on up to $125,000 of profit, but any profit in excess of that amount was taxable unless a new home was bought.
The good news is that with homes sold after May 6, 1997, homeowners can make as much as $500,000 tax-free profits on the sale of a principal residence for joint filers or $250,000 for single filers. The $500,000 capital gains exclusion removed taxes as a consideration for most home sellers by giving them flexibility to trade up or down. It has also allowed homeowners to preserve the savings value of a home when they sell, provided they use the property as their principal residence for two of the prior five years prior to the sale.
Consult your tax advisor for your particular circumstance.
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| Q |
What are the financial benefits of having a home near a body of water?
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| A |
The mere presence of water within 300 feet increases a home's value by 22 percent. |
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