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Real Estate
Eileen M. Day realtor r»rs
SECOND HOME AS
REPLACEMENT
The rollover tax break allows you to sell your principal residence and defer paying any taxes on the profit as long as you buy another home that costs as much as the one you sold. If you already own a seccond home and plan to move into that as a replacement, you can take the same deferral as long as you purchased within two years before or after the sale.
If you've owned that second home LONGER than the two-year envelope and desire to rehab it, can you deduct the cost of the new construction from the profit on the sale of your present home?
No matter how long you have actually owned the second home, you need only start “reconstructing" it within the two-year period to qualify for the home-sale break. Major reconstruction of the second home is treated the same as the purchase of a new home.
Each dollar spent in reconstructing the second home cuts into the amount of taxable income you receive from selling the old home.
If there is anything we can do to help you in the field of real estate, please drop in at EILEEN M. DAY, Realtor, The Clopton House, Washington, Va. 22747. Phone: 6753400. We’re here to help.
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