When you have financial troubles, it's hard enough managing one home. If you have multiple homes, you may have even more trouble. You can only have one primary residence. It's at your primary residence that you have your mail sent, where you vote, where you pay income taxes, and where you spend most…
$8000 First-Time Home Buyer Tax Credit: Must Live in House To Qualify
To qualify for the $8000 first-time home buyer tax credit, you must live in the house as your primary residence for at lease three years after buying the house. If you are buying an investment property, you will not qualify for the $8000 first-time home buyer tax credit or the $6500 repeat or…
Primary Residence Or Principal Residence: Mortgage Lender Problems
A reader purchased a first home and lived in it and then bought a second home. She now lives in the second home. Now the lender claims she is in default under her loan agreement for failing to use her first home as her primary residence or principal residence. Does the lender want to foreclose on…
$8000 First Time Home Buyer Tax Credit And Money From Parents
With the $8,000 First Time Home Buyer Tax Credit due to expire on November 30, 2009, parents are coming to the aid of their children by giving them money or buying a home with them to qualify and take advantage of the tax credit. If you are single and have not owned a home for the prior 36 months…
Who Qualifies For First Time Home Buyer Tax Credit?
Some relationships fall under different first time home buyer qualifications. If you have never owned a home, but your spouse owns a home, you probably will not qualify for the first time home buyer tax credit. The first time home buyer tax credit qualifications are very strict. Unmarried first time…
Refinancing Mortgages Under the Obama's Making Home Affordable Plan and Primary Residences
The Obama Making Home Affordable Plan can only be used right now for refinancing of mortgages on primary residences. If you are struggling with the mortgage on a vacation home or investment property and want to refinance, the home mortgage will not qualify for the Obama Making Home Affordable plan…
Refinancing May Make Second Home Mortgage More Affordable
Many home sellers on the market are struggling to sell their first home before it's time to move into their new house. You may find yourself carrying two mortgages, or trying to pay off either a home equity line of credit (HELOC) or a primary mortgage. If you have good credit and are employed, you…
Make Rental Property Lucrative and Tax-Efficient
When you own a primary residence and turn it into a rental property you will be unable to take the same tax deductions as you would if it were a primary residence. If you later decide to change the property ownership from yourself to an LLC - a limited liability company - that will also affect your…
Capital Gains Tax Changes If Primary Residence Includes Rental Property
Renting out part of your primary residence will change how your capital gains tax is calculated when you later sell. If you didn't have a rental property as part of your primary residence, you could save taxes on up to $250,000 of profit from the sale, if you're single. When you have a rental…
Selling Property Avoiding, Paying Minimal Capital Gains
Can you sell a portion of your property, but avoid paying capital gains? Should you sell all the property then buy back the portion with your primary residence, to avoid or pay minimal capital gains? A good real estate attorney who can help you make the right decision about selling property and…
Buying Real Estate, Primary Residence With Another Family
Q: I wonder if you can suggest any resources for my situation. My wife and I currently live in a co-op, where we have made good friends over the last 2 years.
We are exploring the idea of buying a 2-family house together, since the single family market is so overpriced right now. What are the…
Reverse Mortgage Possible Only For Nearly Paid-Off Home
As you get older you may be trying to think of ways to supplement your income. One way to supplement income in retirement is a reverse mortgage, but that works only for homes that are nearly paid off. If you still owe money on a mortgage for your primary residence you won't be able to get a reverse…
Will Appreciation And Depreciation Nix Capital Gains?
How can a home seller know if they'll pay capital gains taxes on the sale of their home? In general, if you live in a property for two out of the prior five years, and the property was your primary residence for two years, you are entitled to exclude $250,000 of the gain in the sale of the home from…
Lease Or Own Land: Depends On Primary Residence Or Vacation Property
Deciding whether to lease our own land depends on whether the property is going to be a primary residence or vacation property. A reader wants to "purchase" land that Georgia Power owns, but it's a 99-year lease, instead of actually owning it. Ilyce explains that a 99-year land lease means that…
Capital Gains Tax: IRS Clarifies Primary Residence Requirement
The IRS has clarified how long a home owner must live in a primary residence in order to avoid the capital gains tax. The home owner must live in the primary residence for 2 of the last five years in order to avoid capital gains tax when selling the house. The IRS lets the homeowner pick which 2 of…
Real Estate Agent Helps Determine Market Value
What's a good way to figure out the market value of your home or land? And once you've found the market value of your property and you decide to sell, how can you structure the sale so as to minimize or eliminate capital gains taxes? To figure out the market value it helps to consult with a real…
Lenders Hesitate to Refinance Home That's Been on the Market
Lenders don't like to refinance a property that was just on the real estate market. They may worry that the home owner will try to sell the home again after the mortgage refinancing. Lenders prefer to refinance homes that are primary residences, as it can be expensive to underwrite and process…
Federal Tax Credit For Buying Home
If you're a first time home buyer or other home buyer you may be able to take a tax credit of $7,500 to $15,000 on your home purchase, if you live there for at least two years. The original $7,500 tax credit required buyers to repay the government over 15 years, but the new one no longer requires…
Capital Gains Tax: Calculating Profits From Sale Of A Primary Residence
Tax law states that a seller is entitled to a capital gains tax exemption on the sale of a primary residence. Homeowners must live in a primary residence for at least 2 years in order to get the exemption on the capital gains tax. A single person may keep $250,000 dollars free of a capital gains tax…
Mortgage Interest Tax Deduction Without Name On Mortgage
A mother-in-law passed away and her son and his wife took over the mortgage payments including mortgage interest. Can they deduct mortgage interest on their taxes even though their names are not on the mortgage? Yes, because they will use the property as a primary residence. Consult the IRS web site…
Tax Deductions: Who Should Own Primary Residence
Does it make sense to have the title to a primary residence held by a limited liability company (LLC)? If your LLC owns a primary residence you may lose various tax deductions. It may also be more difficult to obtain favorable mortgage financing because a property owned by an LLC may be considered…
Buying Homeowners Insurance For Vacant House
A sibling asks about having a brother move into his widowed mother's now vacant home to facilitate buying homeowners insurance. The family plans for the brother to buy the home but he can't afford it until he receives his share of the estate. It's a good idea to have the brother move into the home…
Real Estate Taxes: Can You Deduct Them From Inherited Property
The U.S. Internal Revenue Service allows tax payers to deduct some real estate taxes when they file. Can an owner of multiple properties deduct the property taxes from a recently inherited property? A Think Glink reader asks about deducting the property taxes from a property he inherited with his…
Today On The Ilyce Glink Show August 10, 2008
There's a lot to talk about on Today's Show.
CDs Are Looking Like A Better Deal
Interest rates are starting to rise, which means that CDs are looking like a better place to park your cash. Wachovia is offering 4.25 percent on a 1-year CD and Countrywide is offering 5 percent on a 5-year CD. You don't…
Refinancing Mortgage: Cancel Mortgage Refinancing After Contracts Signed
Can you can cancel a mortgage refinance loan after having signed the paperwork. It depends on how soon after having signed the refinance documents you change your mind and some lenders may charge fees for backing out. Some contracts list specific cases when it is OK to cancel a loan.
