How do I avoid capital gains tax for jointly owned property? This reader wants to know how best to go about using the home sale exclusion when they sell the property. Q: My wife and I own our home jointly. The home has appreciated substantially in the 25 years we have owned it to the [...]
COVID-19 pandemic update: property tax payment extensions and penalty waivers. There are now 16 states offering some form of COVID-19 property tax relief. Relief programs for financial obligations continue to become available as more Americans have their incomes disrupted due to the coronavirus pandemic and the resulting economic slowdown. The average American household spends $2,375 [...]
Second home vs investment property: IRS tax rules. If a property was used as both over time, what are the tax implications when the property is sold? Q: I read your article on avoiding capital gains tax on second homes in our Sunday paper. I have a question that is along those same lines, except [...]
Paying property taxes on an abandoned home. This renter can’t locate the owner and wants to know if they can pay back taxes before it goes to auction. Q: I rented a house from a person who turned out not to be the owner of the home. I contacted the authorities and the scammer disappeared. [...]
How much tax do you pay when you sell a rental property? How home valuation and depreciation factor into taxes when selling investment property. Q: My father in law is selling a duplex he rented out for about 10 years. The sale price is going to be around $300,000. His accountant says that he should [...]
Tax return 2020: how to spend your refund. This is how you should spend your income tax refund to prepare for a recession. The IRS officially opened the 2020 income tax season last Monday, January 27th, when it began accepting individual tax returns. The majority of Americans are expecting an income tax refund, but just [...]
Should you put your rental property in an LLC? These parents want to transfer a rental property to their son's LLC and want to know about tax implications. Q: We are subscribers to your YouTube channel, Expert Real Estate Tips. Thanks so much for sharing such good advice. I’d appreciate if you could advise us [...]
Is property sold in a trust taxable? Inheriting a home through a trust usually simplifies the selling process, until you consider capital gains taxes. Q: I need some advice about selling a home held jointly in a trust in my name and my brother’s name. This was my mother’s house originally and she has since [...]
Tax reform has caused a lot of confusion in 2018 for taxpayers, tax-preparers, and homeowners looking to deduct home loan interest. The recent Tax Reform Act has caused consternation for taxpayers, tax-preparers and even syndicated columnists. In a recent column, we addressed the issue of the deductibility of interest in an equity line of credit [...]
Filing income taxes when you move out of state can quickly become complicated. Consider all of these factors before you file. Q: We sold our house in Connecticut and moved to Virginia. Do we have to file income taxes in both states? Our house was sold in end of July of last year and we [...]
