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Politics : Formerly About Advanced Micro Devices
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To: i-node who wrote (172060)7/20/2003 2:26:02 PM
From: tejek  Read Replies (2) of 1576576
 
Internal Revenue Code Section 1034, which is the "law" you're referring to, has existed for years. In effect, you could always sell your residence and defer the gain so long as you purchased a more expensive residence within a prescribed period (which varied between 1-2 years over time). A different law provided for a one-time exclusion after you reached age 55 of up to 125K without purchasing a replacement. What changed is that there is no longer a requirement to reinvest the money in a residence, and the amount was increased to 500K vs. 125K previously -- in effect, accommodating the wealthy (Clinton? No that can't be possible -- he was the friend of the working man).

First, Jim McMannis claims there is still another new law which permits you to sell your primary residence every two years and pocket up to 500k of the gain. Is that true? I have not heard of this new law.

Secondly, as for your comment, I knew of the change in the law where the amount of the gain was increased from 125k to 500k for a primary residence once you are a certain age and does not have to be reinvested.......that was the law to which I was referring.

Maybe such a gain would be restricted to the rich in Arkansas but in CA, just before I left, I sold a house for a lower middle class retired school teacher who was house rich. Her gain was $425k; that size gain is not unusual for someone in CA or WA or OR or MASS or NYC or DC, and many lower middle class/middle class persons in those and other states that have seen major appreciation and who bought 15 years ago are capitalizing on that law.
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