Q: I have listed my home for sale. It was purchased in 1992 for $122,000. It is now listed for $183,000. Do the capital gains tax laws still exist? I am getting divorced and will not be purchasing another property for some time so I wanted to know what kind of surprises I will be facing as far as taxes go. Thanks for your help. Bob

A: Dear Bob:

I believe that you may be in luck. The IRS changed their capital gains rules for sales of primary residences a couple of years ago. According to current tax rules, the first $250,000 ($500,000 if filing jointly)of capital gains may be excluded from taxation if you lived in your property 2 of the past 5 years. Please consult you tax advisor or IRS publication 523 for more information. Jerry