Category Archives: Real Estate

How to Understand and Reduce Taxes When Selling Your Home

If your home’s value has soared, congratulations. If you decide to sell, beware.

How Tax rules have changed:

Until 1997, home sellers didn’t have to pay taxes on their profits if they bought another home of equal or greater value within two years. In addition, people 55 and older could use a one-time exclusion to avoid paying taxes on up to $125,000 of home sale profits.

The Taxpayer Relief Act of 1997 changed the rules so that instead of rolling profits into another home, homeowners could exclude up to $250,000 of home sale profits from their income. To qualify for the full exclusion, home sellers must have owned and lived in the home at least two of the five years prior to the sale. Married couples could shelter up to $500,000.

Those exclusion limits haven’t changed in 25 years, while home values have nearly tripled. The median home sale price when the law passed was $145,800, according to the Federal Reserve Bank of St. Louis. The median was $428,700 in the first three months of this year. Median means half of homes sold for less and half for more.

Why your tax basis matters: Let’s say you realized $600,000 from your home sale. You originally bought it for  $200,000 and remodeled the kitchen for $50,000. You’d subtract that $250,000 from the $600,000 to get $350,000 in capital gains.

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Assembly bill would tax house flippers

AB 1771 aims to reduce housing speculation by investors, free up properties for individual home buyers

House flippers could be taxed 25 percent of their profit under the California Speculation Act, a bill introduced by Assemblymember Chris Ward, D-San Diego.

Assembly Bill 1771 aims to discourage real estate speculation that Ward said drives up home prices as equity investors outbid individual home buyers.

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New Real Estates Laws for San Diego – 2022

There are new laws governing real estate — from emotional support animals to appraisal discrimination — that took effect at the start of this month and could make a big difference for renters and housing in general.

When an appraiser comes to a house to figure out its worth, there are a lot of things to consider — but skin color is not supposed to be one of them.

This new law is aimed at stopping discrimination over race, or bias, among appraisers. One highly publicized case in the San Francisco Bay Area has a Black family suing an appraiser after they felt they were given a lower appraisal value. Their evidence? They asked a White friend to pretend to be the homeowner for a second appraisal and saw their home’s value increase by more than $500,000.

Home Owner Association emails:

If it seems like you get a lot of mail from your homeowner association, you probably aren’t alone.

This state senate bill requires an HOA to send materials by email if that is preferred by an individual member. They can still get everything by snail mail if they want, and if you don’t tell your HOA, the default will stay snail mail.

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