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Manteo and Roanoke Island  Roanoke Island, nestled between the mainland and the Outer Banks is one of the most historic pieces of real estate in the country. In the late 1500's, Queen Elizabeth I and Sir Walter Raleigh made the first attempt at English colonization of America here -- and failed miserably. The settlement of 117 men, women and children disappeared without a trace and became known as The Lost Colony. The only clue to their disappearance was the word ''Croatoan'' carved on a tree. Various theories have surfaced throughout the years as to what happened to the Lost Colony, and one by one, they seem to have been discounted. Today, over 400 years later, no one really knows their fate - and probably no one ever will. The nation's longest-running outdoor drama, The Lost Colony, recreates their tale on summer nights, and the remains of the original settlement can be seen at Fort Raleigh National Historic Site. The Roanoke Island Festival Park interprets the area's early history with a distinctive Elizabethan flare. The North Carolina Aquarium, the quaint Manteo waterfront, and the fishing village of Wanchese also offer great insight into what makes the Outer Banks such a special place to live and visit.  |  | | | Manteo - The Elizabeth II | |

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Tax Considerations >Your Tax Free Profits
Significant tax reform legislation was signed into law with the Taxpayer Relief Act of 1997. This legislation replaced both the one-time $125,000 tax-free exclusion for homeowners aged 55 and older, and the "rollover" deferment of capital gains tax requiring the purchase of a replacement home of higher or equal cost within two years of the sale of your principal residence.
With this change, a married couple filing their taxes jointly pays capital gains taxes only on that portion of home sales profits that exceeds $500,000. Single taxpayers, heads of households, and married persons filing separately may exclude up to $250,000. The exclusion is available for all sales of homes that occurred on or after May 6, 1997. Homeowners can use this tax-free provision every two years.
You are allowed to keep these tax-free profits only if you have owned and used the home as your principal residence for two out of the five years prior to the sale of the property. Although the regulations do not require continuous occupancy, the IRS specifies that your principal residence must be the home you use for the majority of time during the year. Consult your tax advisor about your personal circumstance.
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What three things are necessary in order to purchase a home?
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Some cash, a dependable income and good credit. If you fall short, don't despair--homeownership may still be possible. |
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