Wednesday, June 1, 2016

THE TAX ADVANTAGES TO STAYING ONE HOUSE - ADVANCE TAX RELIEF www.advancetaxrelief.com

The single most effective way to avoid capital gains on your home is to make it your permanent home and there's another tax benefit to staying put: When you die, your homes value for tax purposes is "stepped up" to its fair market value.  As a result, no tax would ever be paid by you or your heirs on the appreciation your home earned while you were alive.

EXAMPLE: Mike and Karen purchased their home in 1960 for $60,000. In 2009, its worth $1 million. If they sold the house in 2009, they would have a $940,000 gain, far in excess of their $500,000 home sale exclusion. Instead, they continue to live in it. Assume they both die in 2013 leaving the home to their daughter Sarah. At their death, the home is worth $1.3 million - this becomes its value in Sarah's hand for tax purposes. If Sarah later sells the home, her taxable gain will be the amount she earns in excess of the home's $1.3 million tax basis

People often wait till December to start thinking about ways to reduce their taxes for the year. This is too late. 

If you really want to save some cash, start planning no later than October but earlier in the year is usually better. For example, the best time to contribute to tax deferred accounts is at the beginning of the year. because you'll get a whole years worth of tax deferred income. 

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Advance Tax Relief LLC is a full service Tax Relief firm in Houston which includes tax professionals, IRS enrolled agents and Tax Attorneys. Our tax professionals are very knowledgeable and experts in tax negotiations. We offer fast response protection to our clients and a commitment to gaining major tax reductions. Whether you are new to tax problems or have hired someone in the past to resolve your tax debt, we have a track record of consistently accepted IRS settlements. This has boosted our reputation as having satisfied all of our clients to date.

We are tax relief experts specializing in IRS back tax help, Installment Agreements, tax lien help, wage garnishment release, IRS Offer in Compromises and a whole lot more. Get a free consultation from an experienced tax relief expert today (800)790-8574 or visit our webpage www.advancetaxrelief.com
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ADVANCE TAX RELIEF is not a Traditional CPA or Law Firm. We are Professional Tax Organization of Tax Attorneys, IRS Enrolled Agents, Tax Professionals and Ex IRS employees that help struggling Taxpayers settle or resolve that back tax problems. Call us (800)970-8574 for a free consultation. 

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