Block · one region of the page, as the scanner read it. It may hold a whole story, part of one, several, or an advertisement; stitching blocks into articles is the next step. Text is supplied OCR.
Page 3 · column 1 of 7 · from the scan, no model involved
'Real Estate tiD
*,Eileen M. Day realtor ° * CAPITAL GAINS TAX i QUESTION: What effect does the latest Tax Reform Act have on capital $>ains tax when I sell my home?
ANSWER: One of the biggest changes introduced by the Tax Rejfprm Act is the elimination of the Taxjlivored treatment of net long-term Capital gains. It did away with the 60 percent exclusion of capital gains Jprofit on property held more than six Jnonths). Starting in 1987, all capital Jejains are treated like ordinary income. jjOnder the old law, the top rate was jdnly 20% (i.e. 40% of the net long Jerm gain subject to the top marginal Drate of 50%). For 1987, the transitional year, the top rate is 28% even plough some ordinary income is taxed ;as high as 38'/;>%. I' However, on the bright side, >omesellers can continue to avoid current tax on a sale if they spend the proceeds on another primary home within ;two years before or after the sale, i Also, if the homeseller is over age 55, !he still has a one-time tax exclusion ion the first $125,000 of sale profit i whether or not he replaces the home.
If there is anything we can do to 3ielp you in the.field of real estate, please drop in at EILEEN M. DAY, ■Realtor, The Clopton House, Washington, Va. 22747. Phone: 674-3400. We’re here to help.
87.9%