The Over age 55 Capital Gains Tax  one time exemption for real estate has been cancelled!

The Good News...is even better.

Tax laws at one time allowed for a one-time exemption for homeowners at age 55 and above when selling their homes.  This was to great benefit to people who were getting ready to retire and had equity in their homes.

That tax law no longer exists. The good news is, it's been replaced with a much better benefit to homeowners.

There is no age requirement.  The limit is $250,000 for a single and $500,000 for a joint taxpayer.  The residence must be your primary residence and you must have lived in it for at least 2 of the last 5 years.

So much of an improvement is this code, that many people now purchase homes and continue to sell them after two years.  It has actually become a "way of life" for many.  For example home builders, build a nice home for themselves putting it on the market every 2 years.  They make a nice profit and move into yet another lovely new home.

Don't just take my word for it, go to the IRS website and see for yourself.

Sale of Residence - Real Estate Tax Tips