DEAR BOB: I bought my home for about $250,000 and can now sell it for $600,000. After the tax-free $250,000 principal residence sale tax exemption, I will have exposure to about $100,000 taxable capital gains. What is the current percentage tax rate on capital gains? Can it be offset by the capital improvements I added? Also, should I ask my buyer to pay the sales commission to lower my asking price and reduce my capital gains? – Morgan G.

DEAR MORGAN: The federal capital gains tax rate is currently 15 percent maximum. In addition, don't forget any applicable state tax.  more...

This is Part 2 of a three-part series. (See Part 1: Buying defaulted real estate no easy task and Part 3: Lenders, bidders unleash foreclosure deals.)

Earning big profits from properties that are in the foreclosure process is a "numbers game." One way or another, about 95 percent of homes with defaulted loans are never sold at a foreclosure auction.  more...