American tax law offers a significant capital gains tax exemption that allows taxpaying homeowners to unlock home equity and end the spiraling cycle of "investing up." First-time buyers enjoy expanded rules for Individual Retirement Accounts (IRA) and 401(k) plans, rules that allow penalty-free withdrawals to purchase a home.

Every two years, married sellers of principal residences who file joint federal income tax returns are allowed a $500,000 exclusion ($250,000 for singles) from capital gains tax. For sales that took place after May 6, 2003, the maximum capital gains tax rates for profits above the exclusion dropped from 20% to 15% for higher income taxpayers, and from 10% to 5% for lower income taxpayers.

Homeowners can now consider several new options. People who find themselves at an empty-nester stage (no children at home) in a four or five bedroom home with a large equity have been able to unlock their equity dollars, using the income to help their children buy a first home, take a luxury cruise, remodel the house or purchase a second home for vacation or retirement.

Consult your tax advisor for advice regarding your particular circumstance.

	See All Tips In The "Tax Considerations" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

Sharon Jagoda Sigman
WEICHERT, REALTORS® - Graham Welch
5267 West 95th St.
Overland Park, KS 66207
913-381-6789
Toll Free: 800-291-1302
Property Hotline: 913-381-6789
Fax: 866-714-4532
Email: Sharon@HomesInKansasCity.com

As a native to Kansas and a former local high school English teacher in the Shawnee Mission school district, I am able to give buyers extra assistance and information on schools and the city. My license plate "REALTOR" lets everyone know my profession. My customers find that I am easy to work with and an excellent negotiator. My slogan "choose this LEFT handed realtor to help you make the RIGHT move" expresses my desire to help my buyers find the right home or my sellers to find the right buyer for the best price and terms. I have had my brokers/realtors licenses for over 22 and have consistently been one of the top 10 realtors in the city on both the Kansas and Missouri sides. I hold various designations and degrees: CRS (certified real estate consultant), ABR (accredited buyers agent), SRES(senior citizen representative), CSP (certified new sales consultant-to build) and e-PRO. My education consists of BA and Masters from University of California at Berkeley. I have 3 daughters, 1 dog and 1 cat. My recently licensed Schipperke, Skipper, was rescued by me from a local animal shelter so he helps me find some DOG GONE good homes for my clients. I belong to various organizations like Friends of Art, Friends of the Zoo, Native Sons of Kansas City, Hadassah, Brandeis, local and national realtor organizations. My hobbies are art, traveling, reading, working out, and horse back riding. My other web sites are www.sharonsigman.com www.realestateinoverlandpark.com www.isellkansashomes. www.homesinkansascity.com. I have a toll free 800 number ( 800-291-1302 )that follows me wherever I go.

www.kansas-city-real-estate.com is brought to you by Sharon Jagoda Sigman
NUMBER1EXPERT in real estate for Kansas City, Overland Park and Leawood, Kansas

Read Sharon Jagoda Sigman's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge