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| CONDOChicago.com August
Newsletter |
| Specializing in Chicago condo &
loft living |
| Visit www.CONDOChicago.com
to see the best in Chicago properties online. View our
featured listings or search from our database of over 60,000
Chicagoland townhomes, condos, lofts, and more. Here is the
latest news... | |
| Tax Consequences of Quick
Selling |
As housing prices continue to climb, many
investors are buying non-owner-occupied properties and
quickly turning around and selling them for a profit.
Flipping, however, carries significant tax
consequences.
Investors retaining their property
for a year before selling have their profits considered
a long-term capital gain and pay only a 15% rate. Those
selling non-owner-occupied investment property held less
than 12 months are taxed at ordinary income tax rates,
since it's considered a short-term gain. Subject to the
seller's tax bracket, the tax rate could be as much as
35%.
The IRS will prorate the tax owed for
"unforeseen circumstances" such as death, divorce, legal
separation, job loss, poor health or a single pregnancy
resulting in multiple births. A limited exclusion may be
granted if a natural or man-made disaster caused the
sale of the house, or if it was obtained through eminent
domain. Active duty military personnel may also get an
exemption if located a specific distance from home for a
fixed time period.
Section 1031 of the Internal
Revenue Code offers another means to avoid this tax hit.
According to Section 1031, if a seller replaces a
non-owner-occupied investment property with a like-kind
(same or higher value) replacement property, he will not
be responsible for the income tax on the sale. An
intermediary usually handles this transfer. The seller
normally has 45 days to identify his replacement
property and 180 days to complete the
exchange.
For additional information, please
consult your tax advisor. |
|
| Considering Real Estate as a
Career? |
The CONDOChicago team is actively recruiting new
team members. Do you know any current agents out there
who may be looking for a change? Are you considering a
career change yourself? Please contact Stacy at (312)
278-8574 to discuss career options on the CONDOChicago
team of Keller Williams Chicago Properties. We have
beautiful offices located in River North, great
training, and a supportive
environment.
Stacy &
Cherie | |
| |
Remember... the most powerful feature of
CONDOChicago.com
is the ability to search over 60,000 properties in the
Chicagoland area. Get started now for your move this
fall!
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| Remember, you can Search
the MLS on CONDOChicago.com
and feel free to use the "Refer a Friend" to pass this email on to
someone who may be in the market. Stacy Karel (312) 278-8574 &
Cherie Turner (312) 278-8529 |
| mailto:Stacy@CONDOChicago.com
CONDOChicago | |