[quote=cashflow]Anyone have any articles or links to information on the changes that impact buyers of real estate in 2009 and forward? Someone on here had posted an article, which I am now unable to locate.
As I understood it, if you buy as of Jan. 1 ’09 you will be under the new tax law and will be taxed a percentage when selling the property (no longer tax free).
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I think you are referring to the changes to the Section 121 exclusion …
Starting in Jan 2009, there is a change to taxes on the sale of a primary residence in cases where the property was not owner-occupied for some period of time.
The change results in taxes on the capital gains for the period for which the house was NOT owner-occupied. This only affects you if you want to convert a previous rental to owner occupied, live in it a few years then sell it. OR if you lived in it for a number of years and rent it out (but still meet the 2 out of 5 years owner occupancy rule) then sell it.
Basically the amount of gain taxed is computed by determining the number of days after Jan 1, 2009 that the property was not “qualified use” (owner-occupied) and dividing this by the total number of days owned.
