American tax law offers a significant capital gains tax exemption that allows taxpaying homeowners to unlock home equity and end the spiraling cycle of "investing up." First-time buyers enjoy expanded rules for Individual Retirement Accounts (IRA) and 401(k) plans, rules that allow penalty-free withdrawals to purchase a home.

Every two years, married sellers of principal residences who file joint federal income tax returns are allowed a $500,000 exclusion ($250,000 for singles) from capital gains tax. For sales that took place after May 6, 2003, the maximum capital gains tax rates for profits above the exclusion dropped from 20% to 15% for higher income taxpayers, and from 10% to 5% for lower income taxpayers.

Homeowners can now consider several new options. People who find themselves at an empty-nester stage (no children at home) in a four or five bedroom home with a large equity have been able to unlock their equity dollars, using the income to help their children buy a first home, take a luxury cruise, remodel the house or purchase a second home for vacation or retirement.

Consult your tax advisor for advice regarding your particular circumstance.

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The Danley - Golding Jones Team
Sotheby's International Realty
200 Clocktower Suite 100D
Carmel, CA 93923
831-601-5355
Fax: 831-855-0210
christinadanley@NUMBER1EXPERT.com

Christina has been a broker associate since 1987. She values her clients and makes their needs and their investment's potential the priority. She has listed and sold single-family homes and condominiums throughout the Monterey County area and specializes in Pacific Grove, Pebble Beach, Carmel, Carmel Valley and Monterey. Christina earned the Certified Residential Specialist (CRS) designation, which distinguishes a higher level of education in real estate and a professional affiliation affording up-to-the-minute industry information and local market knowledge. She is the proud receiver of the John Leo Award, in recognition of top sales volume within the Monterey County Association of Realtors, for 1998. Her background includes 20 years of management in the hotel and restaurant business as well. She holds a lifetime limited service credential for California Community Colleges and was honored with the Papa Vince award for excellence in hospitality. Courtney was born and raised on the Monterey Peninsula. She attended local schools Santa Catalina Lower School and Robert Louis Stevenson Upper School. She has always been surrounded by real estate as her mother, Stacey Golding, worked for the Mitchell Group (now Sotheby's) and her husband is a commercial real estate agent. Courtney attended Santa Clara University, graduating Cum Laude with a major in finance and a minor in art history. She then spent the next 8 years in San Francisco working as a finance and accounting recruiter for a nationwide firm, Kforce Professional Staffing. She was a top producer for the company, consistently achieving platinum status.

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