All Posts Tagged With: "deduction"
Real Estate: Will Mortgage Interest Write-Offs Be Reduced?
The Congressional Budget Office has come out with a report showing 66 ways to raise money for the federal government. This sounds like dull and boring stuff until you get to Option #7: Reduce the Mortgage Interest Deduction or Replace It with a Tax Credit. Ugh. You can see where this is going. “The first [...]
8Sep2009 | Peter G. Miller | 0 comments | Continued
Is the interest on 125 percent financing deductible?
This is a somewhat complex question. Interest on loans secured by real estate is generally deductible if the acquisition mortgage value is not more than $1 million. Interest is also deductible for home equity loans (second loans) up to $100,000. With 125 percent financing you have a loan that is worth more than the house [...]
31Aug2008 | Peter G. Miller | 0 comments | Continued
How Much Can We Borrow With Home Equity Financing?
In general terms, “home equity” is the difference between what you owe on the property and what it’s worth in the marketplace. Example: you have a $75,000 loan balance and the property is worth $125,000, your home equity would be seen as $50,000 by most lenders. The $50,000 figure is not real, however, because if [...]
29Aug2008 | Peter G. Miller | 0 comments | Continued
Can I deduct moving costs?
In some cases, yes. If your new job site is at least 50 miles further than the old one (that is, if you current work is 5 miles from home, the new workplace would have to be 55 miles from your old home), and if you work at least 39 weeks during the first year [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
Should We Buy Property For The Tax Write-Offs?
No. Property should NOT be bought for tax purposes alone. If properties are not now appreciating or producing a positive cash flow, then tax write-offs will hold little worth. If properties are now losing money each month but can be turned around on a reasonable basis, say by making improvements that lead to higher rents [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
What are the major tax benefits of homeownership?
In terms of federal taxes, you will generally be able to: ___Write off interest costs on acquisition financing with a principal balance of up to $1 million. __Write off interest costs on a second mortgage or home equity loan with a principal balance of up to $100,000. ___Write off property taxes on your personal residence. [...]
26Aug2008 | Peter G. Miller | 0 comments | Continued
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