A lesson on real estate deductions


Daniel Acker/BLOOMBERG - U.S. Department of the Treasury Internal Revenue Service 1040 Individual Income Tax forms for the 2010 tax year are arranged for a photograph in Tiskilwa, Illinois, U.S., on Wednesday, March 23, 2011.

By Benny L. Kass, Published: January 27


“People who complain about taxes can be divided into two classes: men and women.”
— Unknown

Selling your home (including condo or co-op) in today’s market is not easy, but when you are successful, you may be pleasantly surprised by the favorable tax laws.
In general, if you are married and meet two legal tests, you can exclude up to $500,000 of the profit you have made. If you are not married or file a separate tax return, the exclusion is reduced to $250,000.

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