Boulder Real Estate Affected By New Housing Package?

You might wonder if you own two or more homes how the housing stimulus package might affect you. Life is apparently getting a little harder for those who own more than one home.

If you’re thinking of investing in more Boulder real estate, or already own investment property, you should know that part of the housing package signed into law by President Bush about a month ago can impact some tax-saving strategies you previously may have used.

What’s changing is the rule about selling a home, taking the capital gain exclusion on a primary residence, and then repeating the process after you move into another one of your homes. It’s that hop from primary residence to ‘vacation home’, converting that one to primary residence… then taking the exclusion again, that’s a problem.

The law isn’t scheduled to take effect until next year sometime. The goal: raise about $1.4 billion in revenue for the U.S. Treasury Department over the next ten years. This is one of the ways the administration is looking to offset the costs of the new law. Congress apparently feels that the old law, enacted in the 1990’s, had a loophole they didn’t like and that this is a way to fix the problem.

There are many specifics to the new law that may be important to you. You might consider getting professional tax advice before you make any decisions about your personal financial and tax strategy as it relates to your current housing portfolio.

If you want more information about forming new strategies for tax saving and income optimization, consider finding a top rated CPA if you don’t already have one. One of the best in Boulder is Mark Carson.

Mark Carson and Associates specializes in helping small business owners and investors with tax strategy and income optimization planning. Certainly don’t take my word for it — I’m not a lawyer, nor an accountant — but Carson is both.


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