The Housing Act, signed into law two days ago, brought with it some Federal Tax law changes. Most important is a reduction to the capital gains exclusion for your primary residence (currently $250,000 for singles, $500,000 for marrieds filing jointly).
Currently, if you live in a house for just two of the five years preceding its sale, you qualify for the full exclusion. With the new law, you are penalized in proportion for every year after 2008 the house is not your primary residence.
For a good example and details on the other changes, click on the Smart Money article above.
Currently, if you live in a house for just two of the five years preceding its sale, you qualify for the full exclusion. With the new law, you are penalized in proportion for every year after 2008 the house is not your primary residence.
For a good example and details on the other changes, click on the Smart Money article above.