Political Quotes

“this tax legislation, as passed by the Senate Finance Committee, goes a long way toward assisting our Nation's families. For example, reducing the capital gains tax rate from 28 percent to 20 percent will stimulate savings and investment. This increased investment will, in turn, foster economic growth. In particular, I would like to draw your attention to a provision that will have considerable impact on our Nation's families: the capital gains exclusion for homeowners who sell their primary residence. Under current law, capital gains from the sale of principal residences is subject to taxation, with two limited exceptions. First, under the rollover provision, taxpayers can rollover gains from the sale of a principal residence into a new residence. They can then defer any capital gains tax--but only if the purchase price of the new home exceeds the adjusted sales price of the old one. And to restrict this even more, the new residence must be purchased within 2 years of the sale of the first home. A second exemption ties the capital gains tax to age. At age 55, a taxpayer can exclude up to $125,000 of any accumulated gain from the sale of a principal residence. And this is a one-time-only opportunity. Worse yet, even this is restricted. To qualify for the exclusion, the taxpayer must have owned the residence and used it as a principal residence for at least 3 years during the five years before the sale.”