âAnonymous, Anaheim, CA. A: With regard to federal taxation, individuals can exclude up to $250,000 in profit from the sale of a main home (or $500,000 for a married couple) as long as you have owned the home and lived in the home for a minimum of two years. Those two years do not need to be consecutive.
DEFINITION of 'Subsidy'. A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction.The subsidy is usually given to remove some type of burden and is often considered to be in the interest of the public.Politics play an important part in subsidization. subsidy is a benefit given to an individual, business or institution, typically by the government. Subsidies are given to promote a social good or an economic policy.
As you make more income, you get less assistance from the government until, once you reach a certain threshold (it seems to be between 250% and 400% of the federal poverty level depending on your region), the assistance disappears. This is not the same as jumping up into a new tax bracket. The subsidy, in the form of a tax credit â meaning a dollar for dollar reduction in your tax bill â doesnât gradually drift away to nothing. Once youâre a dollar above the limit, POOF, the credit disappears. The difference in costs is stark.