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KJT LEGAL CORNER (November/December 2008 Article)
My family and I would like to wish all of the members and their families a very Merry and Blessed Christmas! I have enjoyed receiving your questions and comments throughout the year and look forward to 2009.
Question: My wife and I sold our home and are looking to downsize. We lived in our old home for more than ten years. Will the money we receive from the sale of our old home be taxable?
Answer: Probably not. In order to avoid paying capital gains tax on the profit from the sale of your home, one has lived in the prior homestead for at least two of the last five years prior to the sale. Also, the gain on the sale of the prior home must be less than $500,000 for a couple and $250,000 for an individual.
Philip J. Hundl is State Attorney for the K.J.T. State Attorney’s note: The information in this column is not intended as legal advice but to provide a general understanding of the law. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their particular circumstances.
Submit your questions for this column via email to phundl@wadlerperches.com or via U.S. Mail to Wadler, Perches and Hundl, Philip J. Hundl, KJT State Attorney c/o KJT Legal Column, 105 W. Burleson Street, Wharton, Texas 77488.
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