American tax law offers a significant capital gains tax exemption that allows taxpaying homeowners to unlock home equity and end the spiraling cycle of "investing up." First-time buyers enjoy expanded rules for Individual Retirement Accounts (IRA) and 401(k) plans, rules that allow penalty-free withdrawals to purchase a home.

Every two years, married sellers of principal residences who file joint federal income tax returns are allowed a $500,000 exclusion ($250,000 for singles) from capital gains tax. For sales that took place after May 6, 2003, the maximum capital gains tax rates for profits above the exclusion dropped from 20% to 15% for higher income taxpayers, and from 10% to 5% for lower income taxpayers.

Homeowners can now consider several new options. People who find themselves at an empty-nester stage (no children at home) in a four or five bedroom home with a large equity have been able to unlock their equity dollars, using the income to help their children buy a first home, take a luxury cruise, remodel the house or purchase a second home for vacation or retirement.

Consult your tax advisor for advice regarding your particular circumstance.

	See All Tips In The "Tax Considerations" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

The Maher Team
Realty Executives of Kansas City
11401 Ash Street
Leawood, KS. 66211
Phone: (913)-287-HOME
Fax: 913-642-7053
Email: Info@TheMaherTeam.com

As members of America's NUMBER1EXPERTS in Real Estate for the Olathe KS, Overland Park KS, and Kansas City MO areas, Michael and his team understand whose interests are most important in your transaction. Call or e-mail him today! Remember The Maher Team's slogan: The Maher Team; We're not #1...YOU are.

The information contained herein is furnished by the respective owner(s) to the best of their knowledge, but is subject to verification by the purchaser. Agent assumes no responsibility for correctness thereof. The sale offering is made subject to errors, omissions, change of price, prior sale or withdrawal without notice. In accordance with the law, these properties are offered without respect to race, color, creed, or national origin. Listing broker is representing the seller in the sale of properties herein by an exclusive right to sale agency agreement. The materials contained within this page may not be reproduced without the express written consent of Michael J. Maher of The Maher Team, LLC. The information contained herein is believed to be accurate and timely, but no warranty as such is expressed or implied.

www.michaeljmaher.com is brought to you by The Maher Team
Real estate agent(s) for Overland Park KS, Olathe KS and Kansas City MO, Kansas

Read The Maher Team's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge