Ten Key Tax Facts about Home Sales

In most cases, gains from sales are taxable. But did you know that if you sell
your home, you may not have to pay taxes? Here are ten facts to keep in mind if
you sell your home this year.

1.  Exclusion of Gain. You may be able to exclude part or all of the gain from
the sale of your home. This rule may apply if you meet the eligibility test. Parts
of the test involve your ownership and use of the home. You must have owned
and used it as your main home for at least two out of the five years before the
date of sale.

2. Exceptions May Apply. There are exceptions to the ownership, use and
other rules. One exception applies to persons with a disability. Another applies
to certain members of the military. That rule includes certain government and
Peace Corps workers. For more on this topic, see Publication 523, Selling Your
Home.

3. Exclusion Limit. The most gain you can exclude from tax is $250,000. This
limit is $500,000 for joint returns. The Net Investment Income Tax will not apply
to the excluded gain.

4. May Not Need to Report Sale. If the gain is not taxable, you may not
need to report the sale to the IRS on your tax return.

5. When You Must Report the Sale. You must report the sale on your tax
return if you can’t exclude all or part of the gain. You must report the sale if you
choose not to claim the exclusion. That’s also true if you get Form 1099-S,
Proceeds From Real Estate Transactions. If you report the sale, you should
review the Questions and Answers on the Net Investment Income Tax on
IRS.gov.

6.Exclusion Frequency Limit. Generally, you may exclude the gain from the
sale of your main home only once every two years. Some exceptions may apply
to this rule.

7. Only a Main Home Qualifies. If you own more than one home, you may
only exclude the gain on the sale of your main home. Your main home usually is
the home that you live in most of the time.

8. First-time Homebuyer Credit. If you claimed the first-time homebuyer
credit when you bought the home, special rules apply to the sale. For more on
those rules, see Publication 523.

9.Home Sold at a Loss. If you sell your main home at a loss, you can’t
deduct the loss on your tax return.

10. Report Your Address Change. After you sell your home and move, update
your address with the IRS. To do this, file Form 8822, Change of Address. You
can find the address to send it to in the form’s instructions on page two. If you
purchase health insurance through the Health Insurance Marketplace, you
should also notify the Marketplace when you move out of the area covered by
your current Marketplace plan.

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Terence Talks: Princes' Will and Estate in Question

With the untimely death of Prince, came a slew of individuals coming forth looking for ways to capitalize on their interests. This happens to many celebrities who are in the public eye. Terence E. Smolev of Smolev Law said "It is not uncommon when someone of wealth passes away that people appear and claim that they are rightful heirs entitled to all or part of that dead persons assets. We have seen that with the James Brown estate and now with the Prince estate.  Years ago without DNA testing the unraveling of heirship was more difficult, but not impossible. In fact, not that long ago it was determined that many people claiming to be descendants of Thomas Jefferson was found to be true. DNA played a part in those determinations. You may even see women and men appearing to claim spousal rights. DNA does not play a role in those claims. Marital certificates and/or common law marriage rights become in issue. Let the circus begin!" To read more about living wills and estates you can see Terence's website at http://smolevlaw.com/

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Do you know what a living will is? Living wills allow you to specify how you want to be cared for in case of an inability to speak for yourself during a health emergency. This document acts as a template of action concerning your personal state. Creating one of these documents can provide your family with a concrete plan for emergency situations. Not only does this set up a good emergency plan, but it also puts your family at ease. Having a plan takes the burden off your family for making difficult decisions during these types of situation. Your family will not have to suffer while deciding important health decisions. Terence Smolev and Chirsitna Rickheerman Jonathan form Smolev Law are leaders in their field and have dealt with the creation of hundreds of living wills. Do you or a loved one need a living will created? Contact Smolev Law at 516-931-9500 and talk to an attorney today. Terence and Christina also have a huge amount of resources for you on their website. Follow the link below for your free resources http://smolevlaw.com/.