What are the recent changes to real estate capital gains laws?
In May 2006 President Bush signed into law the Tax Increase Prevention and Reconciliation Act of 2005. The measure extends to 2010 the reduced tax rate of 15 percent on long-term capital gains for taxpayers in the 25-percent or higher tax brackets and five percent for individuals in the 10-percent or 15-percent income tax brackets. Without further action, the rates will jump by five percent in 2011. In real estate transactions, owing capital gains tax depends on the use of the property and the length of time you have owned the property before selling.
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