All Posts Tagged With: "tax"
Home Offices Gain Under Tax Rules
Home is not only where the hearth is, but for growing numbers of people it’s also where the office can be found. And now home offices have become more attractive as the result of new tax rules which have gone into effect this year. For many years the myth was that having a home office [...]
4Sep2008 | Peter G. Miller | 0 comments | Continued
Smart Growth Equals More Congestion, Bigger Tax Bills
“Smart Growth” is here, a collection of proposals, guidelines, and goals that will ultimately make homebuying less feasible and commuting more difficult. And that’s the good news. The essential idea behind various “Smart Growth” initiatives is to move zoning decisions from local communities to Washington. This is necessary, it’s alleged, because we have too much [...]
4Sep2008 | 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
Why Do Lenders Want Tax Returns?
There are several reasons why lenders want to review tax returns for the past two or three years. First, they want to assure that the income you claim in your loan application is also the income you report to the IRS. Second, if you are self-employed lenders may be able to “add back” items which [...]
31Aug2008 | Peter G. Miller | 0 comments | Continued
Can I Get A Mortgage If I have Tax-Exempt Income?
Lenders have a wonderful expression which explains how non-taxable payments are handled — they are “grossed up.” This means that if you take in $1,000 in tax-exempt payments and state and local taxes are 17 percent, it would take an income of $1,204.82 to have a $1,000 income after taxes. The lender would compute the [...]
31Aug2008 | Peter G. Miller | 0 comments | Continued
Is an assessment useful in determining market value?
Tax assessments in many areas are only changed every two or three years, and thus may not be current. As well, assessments may be capped by state or local regulation to a given percentage increase which does not reflect market changes. Lastly, assessments may not reflect full values. For instance, there may be a special [...]
31Aug2008 | Peter G. Miller | 0 comments | Continued
What’s The Profit On My Home Sale?
The profit from the sale of your home is more han just subtracting what you paid from the price you got when you sold. You need to consider: Have you rolled over any profits from a prior residence under the old tax rules? (See a tax pro for specifics.) What was the purchase price? In [...]
30Aug2008 | Peter G. Miller | 0 comments | Continued
What Is The Tax Impact of Divorce?
The tax rules essentially allow owner-occupants to write off profits from the sale of a qualifying prime residence of up to $250,000 for single individuals and $500,000 for married couples. If a divorce or separation is being considered, or is underway, please consult a tax professional as early as possible to see how a real [...]
29Aug2008 | 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
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
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