October 26, 2007
- Phantom Income Bll Update:
Phantom Income Bll Update:
In a move to relieve some of the burden that faces homeowners filing for foreclosure, the US House of Representatives voted to remove a tax penalty known as "phantom income" tax.
Under present rules, if a lender or creditor forgives all or part of a debt due to a foreclosure or short sale [...]
September 4, 2007
- Understanding Property Taxes
Understanding Property Taxes
Property tax increases are a popular method used by municipal and county governments to raise revenue, but they can also have a big impact on the local real estate market.
In most cases property taxes are levied as a percentage of a home's value, or an acceptable representation of the home's value. Governments generally [...]
August 24, 2007
- Why Some Sellers May Get a Break From the IRS
Why Some Sellers May Get a Break From the IRS
Most people who sell their home after having owned it for at least two years don't have to pay federal taxes on their gain. A sale in less than two years after the purchase, however, often triggers some sort of tax hit. But even owners who [...]
July 2, 2007
- Paying Too Much in Property Taxes?
Paying Too Much in Property Taxes?
More than half of homeowners pay too much because their property has been wrongly assessed.
Property-tax increases are based largely on rising home values, not the increase of taxes by local governments. Different formulas are used to figure property taxes, but it all depends on a home's assessed value. Some jurisdictions [...]
June 15, 2007
- Vacation Homes Can Raise Your Tax Load
Vacation Homes Can Raise Your Tax Load
People who spend a lot of time relaxing in one state while calling another home can trigger state income tax in both. A common way to go wrong is to hold on to a condo and social connections after moving away to a tax haven such as Florida or [...]
June 10, 2007
- Consider Income Taxes When Relocating
Consider Income Taxes When Relocating
As many states close their budget gaps by raising taxes, an important factor in the calculus of where to live is shifting, particularly for retirees or people with an option of choosing between neighboring states. In the past 3 years, 26 states have raised taxes significantly in one way or another.
Of [...]
May 22, 2007
- Delinquent Borrowers May Get a Tax Surprise
Delinquent Borrowers May Get a Tax Surprise
For homeowners seriously delinquent on their mortgages and hoping for some relief, the IRS has bad news: If your lender agrees to modify your loan and forgive any part of your debt, you could owe federal income taxes on the amount forgiven.
When personal debts are canceled by a creditor, [...]
May 20, 2007
- Property Tax Assessments on the Rise
Property Tax Assessments on the Rise
Falling home prices and rising property-tax assessments are fueling a grass-roots tax rebellion. Homeowners are lodging record numbers of appeals, fighting against rising assessments that are, in many cases, pushing up annual tax payments significantly.
The Problem: Tax assessments didn't keep pace with soaring property values in recent years. Now, assessments [...]
April 16, 2007
- Property Taxes in Your State
Property Taxes in Your State
Just as the housing boom has worn thin, property taxes are catching up with the one-third rise in the median value of all homes since 2000.
Property taxes — the principal source of revenue for cities, counties and school districts — are calculated by multiplying the nominal property-tax rate by the assessment [...]
March 17, 2007
- Income Tax Savings
Income Tax Savings
Because of income tax deductions, the government is basically subsidizing your purchase of a home. All of the interest and property taxes you pay in a given year can be deducted from your gross income to reduce your taxable income.
For example, assume your initial loan balance is $150,000 with an interest rate of [...]
February 28, 2007
- Deducting PMI When You File Your Taxes
Deducting PMI When You File Your Taxes
Private mortgage insurance (PMI) can be a very expensive cost associated with paying your mortgage. And though you could deduct mortgage interest from your taxes, until Congress approved the Tax Relief and Health Care Act of 2006, you could not deduct PMI.
When you don't have enough money for a [...]
February 25, 2007
- Tax Credits Not to Miss
Tax Credits Not to Miss
Tax year 2006 is the first for which you can get a tax break for making your home more energy efficient.
You can take a 30 percent credit up to $2,000 for the cost of solar water heating or photovoltaic equipment in your home. You can get a 10 percent credit up [...]
February 9, 2007
- Home Based Business Brings Recapture Concerns
Home Based Business Brings Recapture Concerns
Working at home has become almost as common as living at home. Some employers will tell you the two are synonymous while many spouses – especially seniors and aging Baby Boomers not used to having their partner in the home all day—wonder if home-based work really is a good idea.
If [...]
February 7, 2007
- Home Sale Profits? Watch Your Taxes!
Home Sale Profits? Watch Your Taxes!
In today's housing market, with prices still strong in parts of the country, people continue to search for fixer-uppers to buy. There are two reasons to buy a house that's in less than perfect shape: Either to fix it up and move in, or to fix it up and sell [...]
February 2, 2007
- Buying a Second Home
Buying a Second Home
A vacation home or condo can be a good investment, provide rental income, give you a major income tax deduction, and even turn into your residence after retirement. But before you can have any of those benefits, if you are like most people, you will have to find a loan to purchase [...]
January 29, 2007
- Energy-Saving Home Improvements and Taxes
Energy-Saving Home Improvements and Taxes
Since 2006 was an election year, it's not surprising that lawmakers spent much of it creating and adjusting tax laws. Now, as taxpayers put these new measures into practical effect by filing their annual returns, many will find changes that produce some nice tax savings.
If you replaced your home's drafty [...]
September 19, 2006
- 1031 Exchange Becoming More Popular
1031 Exchange Becoming More Popular
Investors who want to cash in their chips on real estate bought as an investment — but defer the tax bill, in some cases forever — can do so by trading into another piece of property.
This strategy isn't new, but it's enjoying a resurgence in popularity now because many [...]
September 17, 2006
- Moving May Mean a Tax Break
Moving May Also Be A Tax Break
If you relocate for employment purposes, you may be able to deduct some of your moving expenses.
The new job, however, must be at least 50 miles farther from your old home than the distance between your old job and your old home. (The location of your new home is [...]
May 15, 2006
- Income Tax Savings
Because of income tax deductions, the government is basically subsidizing your purchase of a home. All of the interest and property taxes you pay in a given year can be deducted from your gross income to reduce your taxable income.
For example, assume your initial loan balance is $150,000 with an interest rate of eight percent. [...]
