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Extra resources for 3 - 2009 CFA Notes - Level 1
To calculate it, take the number of months you lived there before the sale and divide it by 24. For example, if you're an unmarried taxpayer who's lived in your home for 12 months, and you sell it for health reasons at a $100,000 profit, the entire amount would be excluded from capital gains. Because you lived in the house for half of the two-year period, you could claim half the exclusion, or up to $125,000. gov. Deeds Castles in the air are the only property you can own without the intervention oflawyers.
Mortgage interest rates are low. • The economic climate of your region is healthy, and people feel confident about the future. • There's a jump in house-buying activity, as often occurs in spring. Of course, if you have to sell immediatelybecause of financial reasons, a divorce, a job move, or an imperative health concern-and you don't have any of the advantages listed above, you may have to settle for a lower price, or help the buyer with financing, in order to make a quick sale. I want to save on the real estate commission.
A number of companies offer detailed comparable sales prices online. See the list of recommended websites at the end of this chapter. Public record offices, such as the county clerk or recorder's office, may also have information on recent house sales. The asking prices of houses still on the market can also provide guidance (adjusting for the fact that asking prices are typically 10% or more above the usual sales price in slow markets and up to 25% below the selling price in hot markets). To find out asking prices, go to open houses and check newspaper real estate classified ads and online listings of homes for sale.