DLA In The News

Income Tax Exclusion For Selling A Home Purchased Over 40 Years Ago

(c) 2007 Newsday. Reprinted by Permission

REAL ESTATE
SELLING TIP
Interview by LAURA MANN

“When selling a home, seniors should consider the income tax implications if they paid very little for the home, which is common for a house purchased 40 or 50 years ago. The maximum income tax exclusion is $250,000 per person, and $500,000 for a married couple.

. . . Consider compiling a list of all improvements . . . to increase the cost and minimize the tax if the gain exceeds the exclusions.”

David DePinto, attorney, certified public accountant and managing partner, DePinto Law Associates, Melville

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Tags: Income Tax, Selling A Home, Minimize Taxes