Great question!  My recommendation would be to try to “close” or complete the sale of your next home prior to January 1, 2008.  There are definite tax benefits for closing this year — the main one is that you will be able to file for a property tax reduction, called the Homestead Exemption.  Eligible homeowners can file for the Homestead Excemption if the property is their primary residence AND they are living in the home on January 1st.  If you complete the sale on January 4th, for example, you would have to wait until the following January 1st until you would be eligible for the property tax reduction (which is usually a 20% – 40% decrease in your annual property taxes).

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