Most of my clients profit from selling their homes, and they often have questions about capital gains tax. When you sell your primary residence, you are not taxed on your profit if (1) you have lived in the home for two out of the last five years and (2) your gain does not exceed $250,000 as a single taxpayer or $500,000 as a married couple filing jointly. Gains above these limits are taxed at the current rate of 15% for higher income taxpayers and 5% for lower income taxpayers. In 2008 the 15% rate will continue for higher income taxpayers; while the 5% lower income rate will drop to 0% for the 2008 tax year only. On January 1, 2009, the long-term capital gains tax rates will once again be 15% and 5% through 2010. Homeowners can use this tax-free provision every two years. As set forth in the American Job Creation Act of 2004, properties converted from a 1031 exchange property into a primary residence must be held and used as a primary residence for at least five years to qualify for the tax exemption. Consult your tax accountant for more detailed information regarding your particular circumstance.

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Kathy Barth
Texas Home Group Realtors
20920 Kuykendahl Rd. Ste E
Spring, Texas 77379
Office: 281-350-8000
Cell: 936-537-4450
Fax: 936-597-4552
Email: Kathy@KathyBarth.com
KathyBarth@consolidated.net

I am committed to bringing you the best results possible to fit your real estate needs. My vast array of experiences, including world travel, entrepreneurial ventures and experience as a licensed Realtor® in this industry helps you, the buyer or seller, achieve results and avoid pitfalls that can happen so easily in transactions. I can make the process a little easier for you in every way. Your first step is choosing the right Realtor and I am that Realtor. I enjoy building personal relationships which last a lifetime. I serve the Lake Conroe and Montgomery areas. TEXAS HOME GROUP,Realtors® are the best safety net you can have when purchasing or selling a property or home. I strive to get you Top dollar when selling your home, and I work hard to find the right home for the buyer. I firmly believe in advanced education due to the faster paced and more complex process of home buying and selling today. This is evident thru my designation of ABR (Accredited Buyers Representative) and CRS (Certified Residential Specialist).Nobody in the world sells more real estate than TEXAS HOME GROUP,Realtors. My core constituency is all about families and I will help you find your dream home.

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