How Can I Be Exempt From Capital Gains?

How do you know if you can qualify to be exempt from capital gains tax? Actually, there are a few different stipulations involved.

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Call me at (616) 447-7025 for a FREE home buying or selling consultation

I want to take some time to answer a question I’m receiving a lot lately, which is “How can I be exempt from capital gains?”

A lot of sellers right now feel nervous about listing their homes since values in our area have gone up so much. These sellers are worried about the taxes they’ll need to pay on the gains they earn from the property.

Truthfully, there are a few stipulations that need to be considered.

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There are a few stipulations that need to be considered.

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In order to be exempt from capital gains tax, the property will need to have been your primary residence for two out of the last five years. These years do not need to be consecutive.

Also, you can’t have exchanged or sold within the last two years, and the property cannot have been used for business or rental purposes.

If you are an individual, the sales price must not exceed $250,000. If you are a married couple, the sales price cannot exceed $500,000.

Finally, the last stipulation is that the property cannot be involved in a 1031 exchange. A 1031 exchange is an elevated way of deferring gains for investors. Chances are, this isn’t something most sellers are going to be involved in.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Your September Market Updates for Grand Rapids

The latest numbers are in for the Grand Rapids real estate market. What can you expect as a buyer or seller this September?

Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Price Evaluation 
Call me at (616) 447-7025 for a FREE home buying or selling consultation

As we begin September, let’s take a look at what’s happening in the Grand Rapids and Michigan real estate markets. 

Right now, there are 2,007 homes for sale. That number is a little higher than normal. There are 1,730 pending home sales. In other words, there are almost the same number of homes for sale as there are under contract. 

So far this year, 8,476 homes have sold at a rate of about 1,060 homes a month. That means our market has a total of 1.89 months of inventory. 

If we look specifically at Kent County, there are only 1,500 properties for sale and 1,355 pending sales. So far this year, 6,700 homes have sold in Kent County at a rate of 838 home sales a month, leaving Kent County with 1.81 months of inventory. 

What do all of these numbers mean for you? 

Inventory has gone up slightly as we head into fall. With school starting, people are too busy to concentrate on real estate as much as they did this summer. Since inventory is slightly higher, buyers have a better selection now than they’ve had all year. 

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Slightly higher inventory means buyers have more options to choose from.

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If you’re thinking of buying a home, now may be the time to seize the market. 

If you are thinking of selling your home, there is still a lot of action in our market, which means you have a great opportunity to sell. Keep in mind that inventory has increased a little, so there may not be as many multiple offer situations as there were this summer. 

If you have any other questions about buying or selling a home in our current market, just give me a call or send me an email. I would be happy to help you!