For example, if you have a $ 1 million home that has been appraised at $ 1.8 million, you can sell it and take home $ 500,000 of the $ 800,000 gain tax free — due to an exemption on profits from
the sale of personal residences.
Recently, the longtime
personal residence of NBA legend Michael Jordan in Highland Park, Illinois, was presented for
sale by Katherine Chez Malkin and will be marketed globally by Luxury Portfolio International.
The legislation passed by the Senate included changes to the exemption for gains from the
sale of a primary
residence, elimination
of the deduction for state and local income or
sales taxes, a cap on the deduction for real property taxes, elimination
of the deduction
of interest on home equity loans (unless the proceeds
of such loans were used to substantially improve the
residence), restrictions on the deduction for moving expenses to only active duty military, and restrictions on the deduction for
personal casualty losses to Presidentially declared disasters.