If you are buying property toward the end of the year, keep taxes in mind. Points and interest paid before the new year can become deductions for this year’s taxes. Depending on what state you live in, you may be able to lower your property taxes through “homestead” or “principal residence” exemption. Some states limit the exemption to the elderly or disabled, and other states don’t. If you are in the military or a veteran there may be special exemptions available to you.
The Tax Reform Act of 1986 required anyone responsible for closing a real estate transaction, which may include the escrow agent, title company, or attorney, to report a real estate sale or exchange to the IRS on Form 1099-S. In … Continue reading →
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- State By State Income Tax Guide
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- Will My Escrow Agent Have to Report My Sale to the IRS?
- What is the First Time Homebuyer Credit?
- How Am I Taxed in an Installment Sale?
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- What is the Tax Exclusion Rule for the Sale of a Residence?