Tax Guru – Ker$tetter Letter

Primary Residence Sales

It’s been more than five years since the rules for tax free sales of primary residences were drastically changed. It amazes me how few people are aware of this and are still under the assumption that the old replacement rules still apply. What’s scariest is that many of these people are tax and real estate professionals who are spreading their ideas as if they are legitimate.

I’m doing my part to keep people up to date. I will be giving a mini-seminar to a real estate office in Fayetteville on Wednesday to discuss the rules for primary residence sales and for Section 1031 (aka Starker) tax deferred exchanges. In preparation for this, I have expanded my analysis of the residence sale rules.

We are planning to tape the seminar and if everything works properly, we will make copies available on CDs and cassette tapes for purchase. It’s been a few years since we have recorded a seminar and it will be good to have a more current one available.

KMK