June 8, 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 [...]
May 17, 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 [...]
May 15, 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, [...]
April 13, 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 24, 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 27, 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 22, 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 9, 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 [...]
February 4, 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
- 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 [...]
January 24, 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 [...]
