Long term gains (aka the money you make) on stocks and bonds is 15%. Where real estate as an investment is concerned, though, individual sellers can exclude the first $250,000 in profits from taxes (if you are married and file jointly, you get to double that amount) which is a great deal.
What are the requirements? You must have owned the house for at least 2 years and it must have been your "principal residence", aka you have to have actually LIVED there. If you bought the property, let's say back in 2000, lived in it until 2003 and then rented it out and bought a new place, that counts too - you just have to have lived there for 2 out of 5 years before it has been sold in order to qualify for the exclusion. (No, they don't have to be consecutive) And, there's no limit to how often you can do this - you could sell your home once every 2 years (provided again it was your primary residence) and qualify for the exclusion each time.
How about anything you make over that $250,000 (or $500,000 if you are married)? Well, that is taxed at a rate of 15% as well.
Exceptions - always... If you are selling your home because of change of employment, health issues, or military service, you may not have to meet the 2 year rule to qualify for the exclusion...
**Don't forget - I'm not a tax attorney, so if you are about to file your returns, or pack up and move please consult one before you take this as the end-all thing to do - please! :)
some info taken from: http://www.realtor.org/rmomag.nsf/pages/lawmay07?OpenDocument
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