The IRS requires that you live in your house as a primary residence for at least 2 of the past five years to keep your profits from the sale tax free. For this home seller, they want to hold off closing until that two-year mark so they can keep their profits and avoid capital gains.
A senior citizen wants to take cash out of his IRA to supplement his Social Security Income of $1,200 per month. His income is so low that he will probably not trigger any taxes on this income. He may be able to qualify for a reverse mortgage if he needs more cash to live on.
Making student loans payments can be a challenge for new graduates. For those who are about to enter the workforce, paying back student loans could get more expensive as interest rates are about to rise. Students could consolidate now to lock in the current rates, but they would lose the grace period. Also, by paying on time or electronically, some lenders will lower the interest rate.
Ilyce bases this show on a New York Times article which discusses the difference between the rich and the "hyper-richer." Also, Ilyce asks how far listeners would walk to save money and describes the theories of loss aversion and mental accounting. As always, Ilyce takes listeners' calls on a variety of topics, including teens and money, and a couple's differing value of money.
Buyers and sellers alike always want to know how to hire a great real estate agent. In a tight real estate market, it can hard to find a right agent that will give you the time you need. You want to hire an agent who is extremely knowledgeable about the housing stock in your neighborhood.
Adding names to a home's title can be complicated with the IRS. Putting names on a title can be considered a gift and have large tax implications. If you want to add names to a title to help with your estate planning, it's important to consult an estate attorney or estate planner.
Is there a problem when co-mingling personal and investment finances? Unless you have a corporation or business structure set up, having one bank account for personal expenses and a business, like a rental building, is OK. However, you want to make sure you keep very clear records in case you're audited.
Why would your monthly mortgage payment increase by a small amount? It's possible that property taxes and homeowners insurance may be the cause of a small increase to your monthly mortgage payment. Talk to your mortgage lender to find out for sure.
Credit card companies are banking on new technology to stem the tide of identity theft. Ilyce Glink discusses the latest technology ideas for preventing identity theft and credit card fraud, as well as a few tips to protect yourself against identity theft.
