Condominium Owners .. Article of Interest

Those of you owning property on Emerald Isle, that has common area, such as town homes or condominiums, duplexes or triplexes .. you might want to read this . Emerald Isle real estate is cranking up, it is a great season, and if you've not got your property on the market and are thinking about doing so, now is the time. Interest in condominiums has increased significantly over the last month, and we should see this interest reflected in the number of condos sold within the next 30-60 days. At Connect to the Coast, we'll keep you posted. Remember to go to our website, YourNelsonAdvantage.com to see the latest info and newsletter.



Daily Real Estate News June 24, 2008A Commonly Missed Tax Break Condominium or cooperative residents often miss the fact that upgrades to the common areas of communities can affect the amount of tax an owner pays when the home is sold.If the property is a principal residence and the owner has lived in it for two of the previous five years before the sale, a big chunk of the profit is already exempt from federal tax — $250,000 for a single person and $500,000 for a married couple. But the seller will owe taxes on any profit beyond that, and he will owe taxes on the whole amount if the property isn’t a primary residence.A proportional share of the amounts spent by the condo or cooperative association on improvements to the property — not simple maintenance — can be added to the amount paid for the property, or in tax lingo, “the basis.” The basis is subtracted from the sales price to determine any taxable profit.“It surprises me that many community association owners are not aware of this tax benefit. Particularly for older home owners who have watched real estate profit build up over many years and now have a profit of more than $500,000, every dollar of capital improvements they can document is valuable,” says Benny L. Kass, real estate attorney.Source: The Washington Post, Benny L. Kass