Top 10 Real Estate Predictions for 2009

Baby boomers who hope to downsize in 2009 may get hit with an unexpected change in the I.R.S. Tax Code Section 121, if Congress revisits this tax break. The law has been exempting $500,000 for married couples and $250,000 for single people from capital gains only since 1997.

I predict that the government will try to change the home sale tax exclusion in 2009, disallowing the free money that up to now sellers have been able to pull out of their homes upon resale. Congress needs cash to refill the treasury depleted by bailouts and continuing military action.

Sellers should consult a CPA to determine the best way to avoid taxes upon resale.

_{At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.}