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Market Information
Capital Gains on the Sale of a Primary Residence
The IRS Rules on the Sale of a Primary Residence changed in
1997.Under the Tax Payer Relief Act of 1997 a person who has lived
in their primary home for at least 2 years in the last 5, may sell
their home and have up to $250,000 Capital Gain Profit per person or
$500,000 of profit per couple forgiven.
Property Tax Transfer on the Sale of a Primary Residence
Under Proposition 60 a person over the age of 55 may sell their
Primary Residence and purchase another within the same County for
equal to or less than what they sold their home for and transfer
their Assessed Value to their new property. If they move to a
different County and its one of the Counties that currently
reciprocate, then they may also transfer their assessed value to
their new home.
Sale of Investment Property
If a property Owner sells investment property they must pay a
Capital Gains Tax upon the sale UNLESS the sale was processed as a
IRS Code 1031 Exchange. If Exchanged then they may defer their
capital gain into the new property if the new property is equal or
greater in value than the one they disposed of and they concluded
the exchange within the time periods allowed by the IRS.
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