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The Skinny on Home Capital Gains Taxes

Selling your home can be tax free if you meet certain requirements.

A 1997 law made it possible for home owners to skip out on paying capital gains tax. The highest capital gains tax rate is currently 15 percent, which can be a lot on money depending on the sale price of your home. The law says that home owners can exclude up to $250,000, or $500,000 for a married couple, of home sale profits from the taxation of Uncle Sam.

To qualify for this exemption you must follow certain rules. According to IRS Publication 523 'Selling Your Home' (www.irs.gov), you must own the home for at least five years. During that five years, the home must have been your primary residence for at least two years. You can take the tax exemption only once every two years.

There are exceptions to every rule, this one included. According to 'Selling Your Home', there are three reasons why you may be able to qualify for a partial tax break, even if you owned the home for less than the five year minimum. The three exceptions are: change of place of employment, health and unforeseen circumstances.

Change in place of employment means your work suddenly forces you to sell your home and move to a distant location. Health is an unexpected illness that forces you to sell your home. Unforeseen circumstances, as defined by the U.S. Treasury Department, is 'death, multiple births from the same pregnancy and divorce.' These exceptions can best be described as vague, and it is highly recommended that you speak with a tax professional before following up on any tax information.

Fed Report Shows Americans Have Less Home Equity Than Ever Before

Falling prices are eroding the value of U.S. homes. According to a new Fed report, the equity that Americans have in their homes has dropped to the lowest level on record.

Survey Says Most Renters Won't Buy a Home

A survey commissioned by a national federation of state and local apartment associations shows that most renters will not be jumping into the U.S. housing market anytime soon. Has renting become the smart decision?

What the American People Think About a Mortgage Bailout

Some politicians are in favor of providing assistance to the millions of homeowners who are facing default as a result of poor decision-making and falling home prices. Others are dead set against it. Let's see where the American people stand.

What Will Happen to Your Money When Your Bank Fails

Small banks and big ones alike are on the verge of bankruptcy, due to all of the bad loans that have been approved over the past few years. Although people tend to assume that their money will be safe even if their banks fail, history has shown that this isn't always the case. Find out if your hard-earned cash is at risk.

A Comparison of U.S. Home Prices

When it comes to home prices, location matters. Consider this: a $210,000 home in Atlanta, GA would be worth $1.4 million in Beverly Hills. The same home would be worth $509,000 in Washington D.C. and $207,000 in Phoenix. Find out how much homes might be worth in different cities in this home price comparison.

Three Reasons Why a Mortgage Bailout Is a Terrible Idea

An open letter to all of the lawmakers and taxpayers who think a mortgage bailout is what we need to solve the housing crisis.

Most Expensive Cities and States to Rent a Two-Bedroom Apartment

A national survey found that Stamford, Connecticut has most expensive rents among other U.S. cities. Residents need a household wage of $31.58 to afford fair market rent on a two-bedroom rental unit. Find out which other metro areas and states have high housing costs.

Lenders Giving Mortgage Borrowers Cash for Keys

To get borrowers to leave a house--and leave it in good condition--mortgage lenders around the nation have begun offering cash for keys. Some lenders are paying out upwards of $3,000.

New Foreclosure Prevention Legislation Designed to Bail Out Big Business

Republicans and Democrats are working on a new measure inappropriately named ''The Foreclosure Prevention Act of 2008''. This legislation is being billed as help for homeowners, but homebuilders and the mortgage industry are the true beneficiaries.

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