capital gains

[kimesha]

this ??? canbe directed to john micheal since i read it in his getting started in real estate book. john wrote something like you don't pay capital gains until you reach your tax deductible limit of 250000??? if single & 500000 if married. the #'s might be wrong but i know it was something like that. so if i only made 10000 profit when i sale i don't have to worry about capital gains?

[Just Information]

The new exemption allows taxpayer's to sell their principal residence and incur a tax-free gain of up to $250,000 for single people and $500,000 for couples filing jointly (if you meet the requirements).

To qualify for the tax break, you have to own and occupy the home as your principal residence for at least two of the past five years prior to the sale.

The IRS has released rules that will be good news for many taxpayers. The new rules define the "unforeseen circumstances" that will allow taxpayers to qualify for at least a partial tax break when they sell their principle residence before meeting the two-year requirement.

A few are:

A natural or man-made disaster or act of war or terrorism damages your home.

You lose your job or are transferred.

The sale is a result of divorce or legal separation.

You can no longer afford the mortgage payments due to a change in employment status.

The home sale is necessary due to multiple births from the same pregnancy.


If you sell your principal residence and incur a gain you will have cash for the spending, so long as you have occupied the home for at least two of the past five years.

If the sale results in a gain greater than $250,000 or $500,000 for couples filling jointly, there could be a tax consequence.

Be sure to consult with your CPA to clarify.

[Dan Auito]

Kimesha, this is completely covered in the complimentary book "Magic Bullets in Real Estate" I'm not going to quit badgering you until you get it done girl. You may as well sit down and have a read my dear, cause I'm commin to getcha! :SM112:

[kimesha]

i have downloaded and am currently reading it. i made a mistake in the title of the book in the previous post. i've been reading so much i get my info all screwed up. hey dan, can i ask u this? how do you know when your ready? i mean realistically an amatuer can go on for years studying this stuff. i just started researching in january and sometimes i find myself answering a newbie newbie ???? i've read three books. 1 on forclosure 1 on rehabs and magic bullets in real estate. i'm on the websits every free minute i have. and dan i don't just read i study & take notes & rewrite it in my own words. i've always loved to learn new things anyhow. i'm not saying i know it all but could i be ready if i feel confident enough.?

[REIaddicted]

Kim,
Get your butt out there and do a deal ! If you have any questions along the way... just pop on over and ask away.

No time like the present to start in the biz. A person can read, study, rewrite, but EXPERIENCE is going to give you the confidence and knowledge you need.

You are NOT out there alone! Look at the family you have here to guide you :SM025:

We will be with you every step of the way to support, encourage, help and cheer you on!!!!

What is our first deal there sister? :tongue:

Lisa

[Dan Auito]

You are ready when you find yourself making offers Kimesha! Eventually one of those offers is going to be accepted and you will be knee deep in things to do, at this point your true education begins because it is now hands on cause and effect.

Hands on is what teaches, reading forever will lead to paralysis analysis so close the first deal by buying a property that you feel relatively safe with, it is a leap of faith, but you should have someone who is experienced there when you write the offer so as not to make to big of a mistake on the first one.

There is no doubt you will make mistakes but really they are learning experiences in disguise so do not fear them.

Make those offers contingent on inspection or partners approval and when one gets accepted use your experienced friend to ensure no big problems will come as a result.

You have to jump in, just start in the shallow end no Trump Towers to start!
You've probably read enough by now, the thing to do is look at as many houses as you can after seeing 20,30 or 40 you will recognize a deal and the right circumstances of the sellers to go ahead and jump on it.

Once you do one it gets easier and easier with each one you do, Get your bathing suit on and get ready to take the plunge! :SM122:

[kimesha]

o.k. guys & gals. dan i read the book & decided to start to wok on the goal section. i have a real estate seminar coming next weekend & i also plan to join an rei club. from all this networking i will start to look for the money. i'm giving myself 30 days to get my finances in order then another 30 days to find a property. i saw a post, not sure who wrote it but it gave a breakdown of who to mail letters to and particular time frames. i will use this in my schedule. i'm putting the bathing suit on so get ready! just hope the water isn't too cold