One of the biggest misconceptions many homeowners have is that their house is the best investment they’ve ever made. Let’s take a closer look. If you purchased a $250,000 house in 1990 and put 100% down (paid $250,000 cash), and sold it in June 2003 for $600,000, you would have realized a $350,000 profit, which is a Read More >
Is Your House a Good Investment?
Posted on: 01.06.15
Have you ever wondered if your house is a good investment? Chances are you have. Let’s face it; you bought a house because you believed it would rise in value over time. Admit it. If you were certain it would fall in value, you wouldn’t have bought it. You would have rented instead. For many Americans, the house has Read More >
How Can the Tax Treatment of Real Estate Save a Seller Thousands of Dollars?
Posted on: 11.25.14
Under Section 121 of the IRS Code, and spelled out in IRS Publication 523 (2013), homeowners who sell their primary residence may be able to exclude from income any gain up to a limit of $500,000 if the homeowners are married and file a joint tax return. The limit is $250,000 for a single income tax filer or a married Read More >
Did You Know Tax Deductible Interest Actually Reduces An Interest Rate?
Posted on: 11.18.14
In a post entitled “How Can Itemizing Deductions Affect a Homeowner’s Income Taxes?” I introduced a couple named Joe & Mary and demonstrated how, under current tax law, the tax treatment of mortgage interest allowed them to reduce the tax they otherwise would have paid and keep more of the money they earn. The tax Read More >
Which Closing Costs Are Tax Deductible When You Purchase a House?
Posted on: 11.05.14
Many first time homebuyers are told there are tax benefits to owning a home, however, few people can explain what those tax benefits are beyond the tax-deductibility of mortgage interest. In fact, many homeowners aren’t even aware of the tax benefits. The benefits are slightly different for purchase transactions than Read More >