Sellers of Second Homes May Face a Tax Hike: Congress Looking at Section 121

Currently, you can sell your primary residence and exclude gains from your taxable income up to $250,000 per person ($500,000 for a married couple) if you have owned and lived in your house as your primary residence for a total of 24 months out of the last 60 months (2 out of the last 5 years).

It appears that Congress will soon pass a law making some of those gains taxable. This will apply to sales after 2007. I will keep you updated.