Two Great Reasons for San Jose Seniors to Sell (and Buy) in 2010

Two Great Reasons for San Jose Seniors to Sell (and Buy) in 2010

By Michelle C. Carr-Crowe

I’ll make it brief and to the point: 2010 is your year to sell if

1) You plan to sell and want to buy another property, especially if the new property will be less than $800,000, and/or

2) You have significant equity built up and want to save capital gains tax, as the existing benefit ends at the close of 2010.

Currently, there is a new, limited-time tax credit available to homeowners selling and buying a property (both must close by April 30, 2010). Also, a single person who closes by December 31, 2010 can keep $250,000 in tax free capital gains, and a married couple doing the same can keep up to $500,000.

Sales of assets held more than 12 months and sold on or after May 6, 2003 qualify for the 15 percent capital gains rate (5 percent for lowest income taxpayers and zero percent beginning in 2008). The capital gains rate reverts to 20 and 10 percent for assets held for more than 12 months and sold after December 31, 2010.

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