Legislation included in the 1997 federal budget made significant changes that improve a homeowner's ability to profit from the sale of real estate. The capital gains tax exclusions on the sale of a principal residence is just one of several benefits for homeowners. When you sell a home you have owned and use for two of the five years prior to the sale, married couples are allowed to keep up to $500,000 in tax-free profits and taxpayers filing as singles can keep up to $250,000 before paying capital gains tax.

Long-term capital gain is also taxed at lower rates as a result of the Jobs and Growth Tax Relief Reconciliation Act passed in 2003. The maximum capital gains tax rates dropped from 20% to 15% and from 10% to 5%, effective for sales and exchanges taking place on or after May 6, 2003 and through December 31, 2007. In 2008 the 15% rate continues for higher income taxpayers, while the 5% rate for lower income taxpayers drops to 0%, but only for the 2008 tax year. On January 1, 2009, the 10% and 20% rates will be reinstated.

Consult your tax advisor for advice regarding your particular circumstance.

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Shelly Reed
Century 21 Cross Roads
9960 Highway 53
Lower Lake, CA 95457
707-994-7100
Fax: 707-994-5879
Office: 707-303-5882
ShellyReed@NUMBER1EXPERT.com
shellyreed@century21.com

Born in Kentucky with southern hospitality and family at the heart of who she is, Shelly pours herself into whatever she sets her mind to do. She is a city girl that grew up in the East Bay of San Francisco. With encouragement from her parents to develop her love for people and energy for life, she attended modeling finishing school and public speaking classes, all the while winning many awards in competition for Creative Young Authors. Coupled with her academic skills she is an outgoing, honest and sincere person. She has an incredible ability to organize and motivate with her humorous energetic personality. With the loving support of her husband, Rich Reed, they relocated to Lake County ten years ago in order for them to pursue their goals. With Her strong background in Insurance and Sales, Shelly went on to become one of Lake County’s TOP Realtors. Starting out in 2003 with a small local brokerage CPS Country Air and then moving up to join the C-21 Alliance Team in 2009. She continues to grow and strives to achieve the highest standard of service in the industry. Shelly loves the real estate business and her clients love her! She believes that in a smaller area like Lake County your reputation is everything! Shelly cares about her clients and their needs. She brings a REAL Approach to REAL ESTATE.... I am proud to be a REALTOR with Century 21 Cross Roads. DRE #01451243

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