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Home Seller Taxes
The Tax Relief Act of 1997, now in full force, has made selling a home and
moving to a new one more financially attractive then ever before.
Under the new law, most home owners can sell their home
every two years and
pocket up to $150,000 (for single tax filers) or $500,000 (married filing
jointly) in profit with no capital gains tax. The "once in a
lifetime" age 55 limit is eliminated, meaning you can repeat those
exemptions every two years.
Another change from the previous law allows home owners to scale down their
housing without penalty. No longer do you have to buy a home or equal of
greater value than your previous home.
The Federal Government now allows first time home buyers
a penalty-free early
withdrawal from an IRA to help them purchase a home. (However, income
taxes on that money still apply).
Always seek the advise of a tax professional before making decisions
concerning your personal financial situation.
There is a Georgia Transfer tax. It is the responsibility of the Home
Seller to pay this tax which equals 1% of the sale price (a $200,000 home sale
equals a tax of $200.00). This is often considered a Seller Closing Cost.
Always check with your tax advisor before making any decision with tax
consequences. Sharon is not a certified tax advisor.
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