When it comes to selling property capital gains reinvestment can be an important strategy for homeowners and commercial and business owners. The Internal Revenue Service requires capital gains tax to be paid on sale of all capital assets, including properties. Once sale occurs tax expense can be enormous, but with a little ingenuity capital gains tax can be avoided and tax burden relieved. The sale of a home or an investment property can facilitate incredible steps forward for anyone in real estate market. Planning, education and consulting experts are keys to increased buying power!

Uncover Secret to Real Homeowner Potential

The Internal Revenue Service allows gain generated by sale of a home to be excluded from federal tax returns. The homeowner must meet IRS requirements for exclusion. Eligibility for exclusion is based on five-year period prior to sale. If a homeowner has owned property for at least five years and lived in it as a primary residence for at least two years, as much as $250,000 of gain does not have to be reported on yearly tax return. For couples filing jointly, up to $500,000 can be excluded based on eligibility of each spouse. An unknown fact in real estate world is that exclusion can apply to sale of vacation and rental homes if they have been used as a primary residence for two out of last five years. This amount of unreported gain leads to huge savings and greater investment potential.

The Hidden Advantage of Tax Exchange

Economics is as simple and as easily understood as it is honest. Likewise, economics is as complex and difficult to understand as it is dishonest. In existing culture, there is no place for ethics in economics. All is fair in love, war and business. Economics is study and practice of production and distribution of goods and services required by human race for its survival. In existing global scene, we over produce and fail to distribute.

The situation is this:

With modern technology we can produce far in excess of our needs. There is a tendency to over produce alongside an inability to effectively distribute what we produce. We accumulate enormous surpluses. A war of attrition develops, as producers compete with each other, to sell what is not needed or wanted. A multi-billion dollar industry, called advertising, creates a demand for what is not wanted. Odd phenomena, like global warming, are by-products of commercial warfare. But at same time a failure of distribution condemns billions of our fellow human beings to live in dreadful poverty and they die in their millions from starvation and preventable disease. Those in power rely on genocide as only solution.

So let us look at what has gone amiss with distribution.

Distribution beyond a barter system requires a means of exchange. We have decided to use money as our means of exchange. But we have failed to define word 'money', so that economics is flawed and unsafe.

These are all simple, self evident facts.

A successful economy grows. If it stagnates, it is dying. Therefore, to enable economics to function, when it uses money as its means of exchange, money supply must be able to increase without impediment, as economy makes its healthy growth. Therefore there must be an inexhaustible supply, of what is used as a means of exchange, that can be drawn upon as advance of economy proceeds. The rules which determine speed at which new money must be added to economy must be clearly understood, easily seen, and thus easily monitored by people. So as to see that it is done honestly. We tried using gold as our means of exchange, but supply of gold could not keep pace with demand. We resorted to use of tokens of gold to augment supply of gold.

This opened door to dishonest broker. He came to be called a banker.

The banker invented concept of credit to represent idea, that there was gold somewhere being represented by credit. Thus instead of gold as a means of exchange, we had an idea, which served as a means of exchange. As you cam see, and feel, whole business of money becomes hugely complex. So complex that people give up on it, and say they do not understand money. They then submit to fraud and you have existing scene.

Let us see clearly what fraud is, so that we know what we are up against and why we need an economic renaissance.

By Law, private financial institutions are allowed to create and issue new money into circulation as credit. They can claim that assets can be used to substantiate validity of credit. This allows them to seduce governments, businesses, and private individuals into accepting credit as a loan of money.

The instant a person accepts credit as a loan, Law states that he is a debtor and owes money.

He has to earn money to redeem loan, and financier has then created money by counterfeiting money using sleight of hand.