Part 1 – Tax Planning Is Vitally Important
It may seem to be odd to even consider the thought of selling your property when you’ve just bought it. Keep in mind though, careful planning when it comes to taxes will aide greatly that when selling and possibly profiting, you won’t be saddled with a large tax bill.
A lot of the tax planning for when a personal residence is sold is closely entwined with the homeowner being able to qualify for the exclusion of either $250,000 to $500,000 that was given via the 1997 Taxpayer Relief Act. This Act states that every person, no matter their age can exclude as much as $250,000 of the capital gain on their main residence.
