New Tax Law Takes Place Jan 1st, 2009
Some of you might already be aware of a great tax law that will be changing effective January 1, 2009, which will ultimately affect you … Do you remember the law that lets you claim tax free $500,000 (married) and $250,000 (single) when you sell your principal residence? Well that is about to change…
According to the new tax law starting January 1, 2009, if you buy a second home or investment property and later convert it into your principal residence, and then sell that property you will need to allocate any gain from the sale between periods of qualified and nonqualified usage. This means you will only receive a percentage of the tax free money.
Please be aware of the new allocation formula and double check with a professional tax adviser.