Ignite FB Tracking PixelWhat You Need To Know About Capital Gains Taxes - LESLIE MATHEWS

What You Need To Know About Capital Gains Taxes

by LESLIE MATHEWS 11/29/2018

Buying a home is one of the biggest and most useful investments that you’ll make in your lifetime. One thing you should understand when you're making big improvements to a home or doing any kind of high return renovations is that of the Capital Gains Tax. This tax can take away from the return on your investment, especially under the right circumstances. Even with minimal improvements to a home, if an area has seen an upswing in popularity, you could end up paying the price when you go to sell. 


Taxpayer Relief Act


The Taxpayer Relief Act of 1997 can help many people to hang on to the returns they see from the sale of their home. 


Previously, homeowners could qualify for a one-time tax exemption of up to $125,000 on the sale of a home. They also could combine the earnings in on the purchase of another home. Currently, there are a few ways that you can save on the Capital Gains Tax thanks to the TRA. 


House Flippers And Homeowners Aren’t Equal


Not all home sales receive an equal tax treatment. If you are flipping houses, you’re out of luck when it comes to receiving profit-friendly tax breaks. You need to have lived in a home as your primary residence for two out of five years of owning a home in order to qualify for tax breaks. If this isn’t the case, you’ll end up paying a Capital Gains Tax on the sale of the property. If you’re a professional house flipper, your homes are considered inventory and taxed as income. The tax on this can vary from 15% to 20%, depending upon the tax bracket you fall into.



The Type Of Property Matters When It Comes To Taxes


Whether the property is a primary place of residence, a vacation home, or a rental property, the gains are all taxed differently. If you own a second home that you’re interested in selling, it’s not treated the same as a primary residence for tax purposes. You’ll be taxed based on the amount of time that you owned the property, or the amount of time that the property was used as a second home. The taxes are based on a prorated amount of time.


The Price Of The Home Doesn’t Matter


You may think that higher priced homes are taxed more heavily than less expensive homes. This would be the case when it comes to property taxes, but it isn’t so when we’re talking about Capital Gains Taxes. These taxes are based on how much profit is made from the sale of the home. If a loss was taken, or the homeowner “broke even,” they may not owe as many taxes. A smaller home that had significant improvements made could be taxed a bit more than a home that was sold at a higher price with fewer upgrades.

About the Author

Author
LESLIE MATHEWS
About Leslie:
Leslie Mathews is a dedicated, full time, experienced real estate professional.

He takes pride in focusing on providing his clients with personal attention while ensuring that his team understands client needs, strives to meet daily commitments, exceed customer expectations and educating the community on all they need to know about the real estate market.

Leslie is consistently offering on-time communication, accurate evaluations, and advanced maretting, as well as a strong network or buyers, contractors, and other related service professionals to handle all aspects of the REO management and disposition. His training methods consist of face-to-face meeting with groups of people or individuals or direct contact through media communications.

His focus is to minimize lender expenses, holding time and obtain the maximum net returns.
Leslie is experienced in speaking to large groups; much of this experience comes from his involvement in local schools and churches, where he often volunteers. This connects with how he wants to conduct Buyers Seminars by working with the community of the church to connect with people.

Buyers who purchase homes with us will get a coupon for $250 that goes toward closing costs, and half off their next home warranty, or they can use $450 towards anything else they need. Offers cannot be combined.

For our Sellers, we provide a team of experts, including inspectors, contractors, property preservation, staging, movers, and detailed cleaning crews. 
Also, to help our seller clients market their home, we advertise to over 350 web search engines. These include Zillow, Trulia, AOL search, Realtor.com. CBS Atlanta, Bank of America.com, Chase.com, WellsFargo,com, Redfin, Listingbook, Hotpads, Loopnet, Realtytrac, Homes.com, Real Estate Book, Living Choices, Bobvilla, Right move, Hoouse Values, Google, MSN, Yahoo, Market Leader, Hudseeker.com SimpleForclosures.com, ShortSaleSeeker.com, Homefinder, Ziprealty.com, HotBot, Galaxy, Resnet, Georgia House Values, Bing, LinkedIn, Facbook, Twitter, Excite.com. and many more.
His company's website takes advantage of the power of customer automated emails to reach interested buyers quickly and efficiently.

- Real Estate Broker. prior leadership positions professionally and personally. My most recent titles are Realtor Broker, Sales and consultant. 
  • My experience covers all areas of business, including Management, Sales, Marketing, Accounting and Ownership.
  • I understand the business model for distressed properties and know that BPO, REO, and Short Sales represent a strong niche for the coming years.
  • I have the ability to coordinate the financial resources to maintain and manage bank-owned assets; including monthly utilities, maintenance, re-key, and repairs.
  • I have the experience, training and educational background to fully appreciate the key factors of success in preparing BPOs and marketing REO assets.
  • Excellent communication skills and problem solver. I am not afraid to get my hands dirty.
  • Technically skilled in Internet Marketing that enables the sale of inventory for the highest price in the shortest amount of time.
  • Any emergency handled urgently-the same day of occurrence.
  • I will communicate to you any resolution for the property's needs vs reporting to you the problem. You will hear the issue and probable resolution.
  • My Goal: To have the lowest days on market with the highest ration of BPO Price vs Sales Price, and to provide First Class customer service to all my clients.