There are tax benefits to selling real estate. Most people are aware of the tax benefits of home ownership and the ability to write off the mortgage interest paid when it comes to filing an annual tax return. In addition the tax laws regarding capital gains that are received when selling a home are in a home seller's interests. If a home owner's profit is $250,000 or less he does not have to pay a capital gains tax. Likewise if a couple owns a home together they can earn up to $500,000 tax-free profit off the sale of their home. This is one tax benefit that makes investing in a primary residence very appealing indeed.

There are a few rules to follow in the capital gains scenario of selling a home. The first rule is that the home has to be a principal residence. Another catch is that you must have lived in the home for two out of the past five years. Unlike the past however, when you had to buy another home within a specified period of time, you do not have to buy a new, more expensive home with your profits. The real estate market hopefully will soon come back where we are seeing profits on the sale of a property.

The tax benefits of owning and selling real estate are what make owning a home more attractive than renting. Anyone who has steady income, money saved for a down payment, and good credit is in a great position to take advantage of high affordability levels when it comes to buying real estate. The investment can be a good one come tax time.

Since it is tax time I will give you few tax tips to remember:

You have to itemize your return to claim your mortgage interest deduction.

Don't forget those Closing Costs: If you bought or refinanced you home in 2010 you can deduct any origination fees or discounts points that were paid to your lender at closing even if the seller paid your closing costs.

Please contact your tax accountant if you have any questions about filing your taxes.

If you are in the market to buy or sale real estate please visit my website at www.PhyllisDidItAgain.com or www.AllenTate.com/PhyllisWolborsky to view all of my featured listing and the listings offered by our MLS service. Call Phyllis Wolborsky at 919-876-2372, Visit Brian Wolborsky at www.Raleighhomeguide.com, or call 919-427-9508, call Mitchell Wolborsky at 919-270-1049, Kevin Wolborsky at 919-608-2000, Rick Freeman and Amy Davis at www.HomeSearchRaleigh.com or call 919-649-2941, or  919-649-6638.

Have a great day and it would be our pleasure to assist you with all of your real estate needs.