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At Beacon Financial Strategies Corp., it is our mission to provide clients with the highest quality financial planning, investment and tax advice such that their available financial resources can be leveraged in a manner which facilitates the achievement of their long-term financial goals. Is Your Financial "House" In Order? With the devastation inflicted on thousands of people in the Gulf Coast region by Hurricane Katrina, it may be a good time to ask yourself, "Is my financial house in order?" While no one can fully prepare for every circumstance life brings, we should all periodically review our financial plan to make sure that our families are protected. Here are several questions you should ask yourself to ensure you have taken the necessary precautions in the event something unforeseen should happen:Does your spouse and/or children know where your important financial and estate documents are located? Does your family know how to contact your professional advisors? Do you have adequate homeowners and auto insurance coverage? Are your spouse and/or children protected in the event of your death or disability? Do you have adequate short-term/emergency savings? Are your investments allocated to suit your risk tolerance and achieve your long-term financial goals? Can you afford your child's college education expenses? Do you need and can you afford long-term care insurance? Can your assets support an extended retirement? If you are overwhelmed or unsure of the answers to the questions above - we can provide you with direction. Let us help you get your financial house in order and give you the confidence to face life's uncertainties. We offer both one-time and ongoing financial planning engagements to our clients. The Home Sale Exclusion - Don't Miss Out! Given the recent housing boom, for most people, their largest asset is their home. You may be aware that one of the biggest tax breaks available is the home sale exclusion - selling your home with little or no tax consequence on your home's appreciation. Since 1997, the IRS has allowed up to $250,000 ($500,000 for married filers) in profits from the sale of the home to be excluded for income tax purposes. That means most people can sell their home without paying a dime in taxes. In order to claim this exclusion, the home must have been your primary residence for at least two of the last five years. However, you are not required to be living in your home at the time of the sale. In other words, you could potentially live in your home for 2 years and then rent it for up to 3 years prior to selling it - all with no taxable gains. The exclusion may be utilized each time you sell or exchange your primary residence, but generally cannot be used more than once in a two year period. Unfortunately, you are never allowed to deduct a loss from the sale of your primary residence. In 2004 Congress passed a law that makes it even easier for people to exclude gains on the sale of their homes. The IRS is now allowing taxpayers to prorate the gains from the disposition of your home if you are forced to move in less than two years due to the following:A Change in Employment: The new place of employment must be 50 miles further away from your residence than your last place of employment. Health Reasons: A Physician must recommend a change of residence due to health reasons. Unforeseen Circumstances that you could not have possibly anticipated prior to the purchase of the home such as: Natural or Man-Made Disasters Death Change in Employment resulting in an inability to pay housing costs Divorce or Legal Separation Multiple births from the same pregnancy So for most, the home sale exclusion is a great way to benefit from your most valuable asset. If you are thinking about selling your home, give us a call so we can review these home sale rules with you to ensure that you take full advantage of this wonderful tax savings.