Thursday, January 13, 2005
Brought to you by the California Association of REALTORS®
TAX LAW CHANGES FOR CAPITAL GAINS AND CALIFORNIA REAL ESTATE WITHHOLDINGS
With the start of a new year, recent changes to real estate tax laws may affect your clients' buying and selling decisions. One significant tax law change involves properties acquired through a 1031 exchange. For these properties, the Internal Revenue Service (IRS) has imposed a five-year ownership requirement for eligibility to the $250,000 (or $500,000 for married couples) exclusion from capital gains taxes. In a separate move, California's Franchise Tax Board has eased its real estate withholding requirements by no longer requiring one as long as a seller's last use of the property being sold was as his or her principal residence.
Here's a hypothetical situation to illustrate how these new rules work. Let's say, in 2001, Tami Taxpayer acquires a rental property through a 1031 exchange, and then, in 2003, she moves into that property as her primary residence. What are the tax consequences if she now sells the property in 2005?
First, even if Tami has lived in the property for two of the last five years, she may not qualify for the $250,000 exclusion from capital gains tax when selling her home. As of October 23, 2004, a taxpayer who acquires property through a 1031 exchange is not eligible for the $250,000/$500,000 exclusion for the first five years of owning that property. Here, Tami is not eligible because she's only owned her property for four years. For more information about this rule, C.A.R.'s Legal Department has recently updated its legal memorandum titled Capital Gains on Real Estate Sales.
Second, despite this potentially onerous tax liability, Tami is exempt from the requirement that 3 1/3 percent of the sales price be withheld from her proceeds. As of January 1, 2005, a new exemption from the California withholding requirement is available for sellers whose last use of the property was their principal residence, regardless of the two-of-last-five-years requirement. For more information, go to C.A.R.'s newly revised legal memorandum titled California Withholding on the Sale of Real Property . In addition, C.A.R's updated standard form "Seller's Affidavit of Nonforeign Status and/or California Withholding Exemption" will be released shortly.
Realegal® is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 155,000 REALTORS® statewide.
Real estate tax laws changes (2005) may affect your buying and selling decisions.
“Live Help Realtor’s Desk”! We Pick Up the Phone 8am - 9pm |
Daily - Weekends - Most Holidays
Thinking about Buying or Selling Real Estate? We should Talk
Call David Lee Walker REALTOR ®
805 - 377 0897
| Search ALL Ventura County Home Listings: Foreclosures, Condos, New Homes, and More.....|
View Prices, Maps, Photos, Virtual Tours, with Addresses!
Just use your name, email and Your phone # as your Password - then click the "Free Instant Access!" button to enter. (Use the same Password when returning. All information is keep 100 percent Confidential) Allow the next page a few seconds to load.
We hate spam too!
Your information will be kept 100 percent Confidential.
for using CondoHouse@gmail.com to find out about
homes for sale, sold homes, real estate, and fun things in Ventura County.
I will help you with all your Real Estate Needs! -
David L. Walker REALTOR ® Broker
805 - 377- 0897
"I answer my own phone"
| Ventura Homes | Ventura Condos | Ventura Beach
Oxnard Homes | Oxnard Condos | Oxnard Beach
Camarillo Homes | Links |
Home Buyers | Home Sellers
MLS Listing | My Listings +
David L Walker REALTOR ®
| David Lee Walker's REALTOR ® No Sales Calls Policy All sales data is from many sources and is believed to be accurate but is not guaranteed. All Sales that are shown involved other brokerages both on the selling and listing side. Any involvement by Condohouse Realtors is clearly stated and highlighted in RED. David Lee Walker, real estate broker is qualified to advise on real estate. David Lee Walker does not offer legal advice or tax advice. If you have any questions concerning the legal sufficiency, legal effect, insurance, or tax consequences regarding any real estate or other matter, please consult with your attorney, accountant, insurance agent, tax or other appropriately qualified professional. The Sales information referenced to in this Web Site (CondoHouse.com) has been Provided by the Ventura County
MLS Corporation's MLS as of the current Date. The listings and Sales are NOT exclusive to CondoHouse Realtors and may have been Represented by other Brokers. Display of MLS Data is deemed reliable but is NOT guaranteed accurate by the MLS. The Information contained on this website (www.condohouse.com) is believed to be accurate but is not guaranteed. The MLS Data and information being provided is for
the consumer’s personal, non-commercial use and may not be used for any other purpose other than
to identify prospective properties consumers may be interested in purchasing. Any link is for informational purposes only and is not a recommendation nor an endorsement or guarantee. This Information is to be used as a reference and any questions that you may have should be directed to the appropriate Real Estate Agent. If you are interested in any of the properties contained within this website, please contact the appropriate Real Estate Agent. If your property is listed with a Broker, this site is not intended as a solicitation of the listing. The property offered is subject to prior sale. David Walker, REALTOR ®, or CondoHouse Realtors nor Ventura County Coastal Association of Realtors ® or Conejo Valley Association of Realtors ® cannot be held responsible for any Errors or Omissions that may have to occur upon the Publishing of this Information. More Disclaimer By submitting your Email address you are consenting for David Lee Walker REALTOR ® to contact you even if your name is a "Do not spam List". By submitting your telephone number you are consenting to David Lee Walker REALTOR ® contact you even if the number is on
"National Do Not Call Registry". |
For Ventura County Real Estate Information Call
CondoHouse Realtors CalBRE #: 01124599
805 377 0897
David Lee Walker REALTOR ®
California Bureau of Real Estate
"Responsible Broker License"
Lisa D. Walker REALTOR ®
California Bureau of Real Estate
"Real Estate Salesperson License"
The Father - Daughter Team
805 - 377 - 0897
This site, built, maintained and updated by
David Lee Walker REALTOR ®
Ventura County Beach and Coastal Weather
Ventura, California: 50 Best Places to Live in America
50 years of Ventura Weather History
The Pleasant Places To Live
For All Your Real Estate Needs
DAVID LEE WALKER, REALTOR ®
LISA D. WALKER, REALTOR ®
The Father - Daughter Team of REALTORS ®
CALL 805 - 377 - 0897
This California Real Estate site has been Copyright 2019 - 1999
David Lee Walker REALTOR ®. All Rights Reserved
Ever Play Monopoly? Who Wins? Those renting real estate, or those who own it?
David's Golden Real Estate Quote of the Day
|"It is proper for every one to consider, in the case of all men, that he who has not been a servant cannot become a praiseworthy master; and it is meet that we should plume ourselves rather on acting the part of a servant properly than that of the master, first, towards the laws, (for in this way we are servants of the gods), and next, towards our elders."
Real Estate Listing Data Updated Daily
Website Last Modified on
Monday 15, July 2019 10:25 AM
Day 196 of 2019 53.6
169 Days Left in this Year 46.3
Today's Sunrise 5:56 AM PST - Sunset 8:09 PM PST at 35 13' Latitude
Daylight: 14 Hours 12 Minutes,
1.02 Minutes Less of Daylight than yesterday.
Over 8 Million Pages of this website were Viewed by 3 Million People |
Since January 2, 2000
Since January 2, 2000, 8,196,216 Pages of this website were Viewed by 3,054,037 People
Yesterday 407 Pages were Viewed by 244 Possible Buyers or Sellers
So What Does that Mean to You?