The New Tax Laws

Here is a brief summary of the new tax laws:

  1. An exemption of up to $250,000 of long term capital gains for principal residence.
  2. Couples will get up to a $500,000 exemption.
  3. Exempt amounts are reusable every two years.
  4. After passing the new law it will be retroactive to May 7, 1997.
  5. Maximum tax rate on capital gains over $250,000 will be reduced from 28% to 20%.
  6. The roll over provision is gone and the only provision for the new law is that one must occupy their principal residence for two years or more.
  7. Penalty-free withdrawals up to $10,000 from existing and newly created "American Dream" IRA's for the down payment of a first-time home, after December 31,1997

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Copyright© Ron Wynn 2000