Vail Valley Real Estate, Incorporated

Vail, Beaver Creek and Eagle County Property News, Statistics and Real Estate Search. Luxury Mountain Real Estate, Ski In Ski Out Homes, Fly fishing Properties, Hassle free Condominiums

  • 
  • 
  • 
  • 
  • 
  • Company
    • Our Services
    • Agent Directory
      • Rick Beveridge
      • John Helmering
      • David Nudell
    • Company Listings
    • Real Estate News
    • Stay Informed
  • Vail Valley
    • Communities
      • Vail, CO USA
      • Beaver Creek Resort
      • Avon/Eagle-Vail
      • Edwards/Wolcott
      • Eagle/Gypsum
    • Vail Valley Real Estate Search
    • Real Estate News
  • Buyers
    • Featured Listings
    • Receive New Listings by Email
    • Custom Search
    • Vail Valley Map Search
    • Real Estate News
    • Mortgage Calculator
  • Home Owners
    • What is my Property Worth?
    • Considering Selling?
    • Recieve New Listings by Email
    • Real Estate News
    • Custom Search
Call 970.445.1770

Capital Gains Rates and Investment Income for Sales of Second Homes

July 7, 2014 By Your Real Estate Team

Beginning in 2013, under the American Taxpayer Relief Act, H.R.8, long-term capital gains rates have been tiered to income tax brackets. Individuals in the 10% and 15% income tax brackets will benefit from a zero long-term capital gains rate; individuals in the 25%, 28%, 33% and 35% income tax brackets will be subject to a 15% long-term capital gains rate; and individuals in the 39.6% income tax bracket will be subject to a 20% long-term capital gains rate. Property held for less than one year is subject to the ordinary income tax rates of 10% to 39.6% upon sale.

There is also an additional 3.8% tax on Investment Income that may affect the Sellers of luxury second homes but should not affect most of the ski condo owners who choose to sell.

National Association of Realtors 3.8% tax on Investment Income Explained Here

Finally if you own more than one residence, there have been some tightening of how long you must live in one of the properties for a period of time to claim it as your principal residence.  Where you once could exclude $500,000 worth of capital gains if you lived in a residence for 2 of the last 5 years of ownership, the system will now change to a percentage of the time you owned the property in total.  However, this change will not affect most long time second homeowners for the next many years as the IRS will allow you to treat all years of residential ownership prior to 2009 as your primary residence for all properties owned.

ShareShare on Facebook
Facebook
Share on Google+
Google+
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin

Share this:

  • Share
  • Email
  • Twitter
  • Facebook
  • LinkedIn
  • Google

Filed Under: Beaver Creek Real Estate, Eagle County Real Estate, Ski Resort Town Real Estate, Vail Real Estate, Vail Valley Real Estate

Vail Valley Quick Search

Download Your Free Report

Download Your Free Report

Vail Valley Links

  • Featured Listings
  • Sign Up Here
  • Just Listed E-Mail Alerts
  • Real Estate Weblog
  • Advanced Real Estate Search
  • Vail Valley Map Search
  • Vail Property Rentals
  • Beaver Creek Rentals

Vail Valley Tidbits

Tweets by @MountainMarkets

Recent Posts

  • Loft Style Living in the Heart of Edwards – For Sale Quartz R210 $479,000
  • 2335 Bald Mountain Road C13; Vail Three bedroom Townhome For Sale
  • 5064 Black Gore Drive; Both Sides of this Duplex for sale in East Vail
  • Creekside Lofts Townhomes Now Available For Sale in Eagle, Colorado

Create an Account

Connect With Us

Contact Us

We are Social

  • 
  • 
  • 
  • 
  • 

Copyright © 2018 · Vail Valley Real Estate Inc. · 217 Broadway Eagle, CO 81631 · Property Sitemap

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.