The 2016 tax year officially opened Jan. 19 when the Internal Revenue Service started accepting 2015 tax returns. Despite rumors that several valuable homeowner deductions might be eliminated or modified, taxpayers are in luck this year. In mid-December, Congress passed … Continue reading →
What is the IRS Form 4506 which I might be asked to sign at closing? Form 4506 is a form which gives a lender the right to receive a borrower’s tax returns in order to verify the borrower’s income. Most … Continue reading →
There are currently seven states which do not require you to file a state income tax return. States with no individual income tax Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. The two states in Blue, Tennessee and New … Continue reading →
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 →
The First Time Homebuyer Credit is a credit available to taxpayers who purchase a primary residence during the period April 8, 2008 and December l, 2009. It is a result of the Housing and Economic Recovery Act of 2008 and … Continue reading →
Installment sales are used to help spread out capital gains on a property for a period of more than one year. This is done by taking several, smaller payments for the sale of property instead of one large sum of … Continue reading →
A trust is an arrangement which dictates how your assets are to be managed and distributed. Trusts are typically established to save taxes, avoid probate, control trust assets, and protect Beneficiaries. Trusts can be written so that they can be … Continue reading →
The Taxpayer Relief Act of 1997 has replaced the old Rollover Residence Replacement Rule, IRS Code Section 1034, which allowed you to avoid paying tax on your profit from the sale of a principal residence so long as you bought … Continue reading →
Knowing when to close your real estate purchase can work to your advantage at tax time. You may want to consider postponing your December closing until January of next year, if it will benefit you on your tax return. You … Continue reading →
Among the various items which will be prorated, or shared between the buyer and seller at the closing will be real estate property taxes. Although prorations are normally pretty straightforward and easy to understand, property taxes can be a problem … Continue reading →