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.

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The Jannone Team
Prudential New Jersey Properties
1996 Washington Valley Rd
Martinsville, NJ 08836
Office: 732-469-7470
Fax: 732-271-8940
brianjannone@NUMBER1EXPERT.com

Licensed since 1986, Brian Jannone is a successful Broker/Sales Associate with in depth experience in relocation, real estate sales, marketing, and client relations. In 1993, Brian started the "team" so he could better serve his clients. One of Prudential Real Estate Network’s annual top associates, Jannone has again received the Platinum Level membership in the NJAR Circle of Excellence. He is also a Prudential Chairman’s Circle member at the Platinum level, a recognition that only two percent of sales associates in Prudential’s international network achieves. Their exceptional service attitude has made them the number one team of their company.

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