 |  | SALES MEETING TOOL KIT: REAL ESTATE TAXES 101 | |
|  Real Estate Taxes 101, Introduction Component 1: Facilitator Talking Points Component 2: Real Estate Taxes 101 Meeting Agenda Component 3: Activity 1, Common Real Estate Tax Mistakes Quiz Component 4: Answer Sheet for Activity 1, Real Estate Tax Mistakes Component 5: Handout 1, What Can You Deduct When You Own a Home? Component 6: Activity 2, What Tax Deductions Mean to the Homeowner Component 7: Handout 2, What’s Your Real Gain? Component 8: Handout 3, A Basis Worksheet Component 9: Handout 4, Improvement vs. Repair Component 10: Activity 3, Name That Tax, or How Fast Can You Calculate Component 11: Answers for Activity 3, Name That Tax, or How Fast Can You Calculate Component 12: Other Resources | Component 7 Handout 2: What’s Your Real Gain? Capital Gains Facts · Capital gains are the net profits realized from the sale of any investment held for more than 12 months. A principal residence, which can be a single-family home, a condominium, an cooperative, or a manufactured home, is treated as a capital asset. The capital gains rate is currently 15 percent. · Since 1997, homeowners may exclude the first $250,000 in gain ($500,000 if married and filing jointly) on the sale of one home every two years. To qualify for this exemption, homeowners must have lived in the home as their principal residence for two out of the last five years. Note that the 24 months don't have to be consecutive to qualify. Calculating Capital Gains 1. Take the contract sale price of the home 2. Subtract: · The amount paid for the home · Any adjustments to the sale price (See Handout 3 ) 3. The result is the net capital gains realized on the sale Component 8: A Basis Worksheet > |