A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

W

Waiver	The relinquishing of a right
Warranty	A guarantee provided to the purchases regarding the quality of appliances or fixtures sold Also a promise by the grantor of a piece of property that he or she is responsible to the buyer if the title of ownership is defect in any way
Warranty deed	A document conveying ownership of a property that guarantees a clear, clean title
Will	A written document stating how an individual chooses to have his or her property distributed after his or her death
Wraparound loan or Wraparound mortgage	A method of refinancing which covers the remaining balance on an existing first mortgage as well as the additional amount of loan being requested by the mortgagor; full payments covering both mortgages are made to the Wraparound mortgagee, who then forwards on the portion of payment due to the first mortgagee

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

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Real Estate Tips

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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Real Estate Trivia

Q	What is a "smart home"?
A	A "smart home" is equipped with structured home wiring packages that control the home's systems via networked technologies.
See More Real Estate Trivia >

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	BJ Cole, Associate Broker, ABR, SRS Realty ONE Group 7975 N Hayden Rd, Suite A-101 Scottsdale, AZ 85258 BJ Cole: (602) 510-7478 Fax: (480) 368-5140 bj@coleteam.net We specialize in making the process of buying or selling your home as easy as possible. Together we have sold over $400 million in real estate, taken part in over $6.5 billion in luxury property transactions including appraisals, and understand what it takes to follow through to complete your sale/purchase. We excel in personalized customer service and follow through.	Chris Cole, SRA, CRP, SRS Realty ONE Group 7975 N Hayden Rd, Suite A-101 Scottsdale, AZ 85258 Chris Cole: (602) 510-7286 Fax: (480) 368-5140 chris@coleteam.net
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