You can only have one primary residence at a time. Simply declaring to the world that your new home is actually your primary residence isn’t quite enough. You actually have to live there for a majority of each year. In general, when you sell your home and it is your primary residence, you can exclude from federal income tax $250,000 (if you are single, or $500,000 if you are married) of the profits from the sale of the home. But you must have used the home as your primary residence for two out of the last five years. Learn more about what it means to have a primary residence.
Refinancing Rental Property Mortgage Means Higher Interest Loan
If you are self-employed trying to refinance a piece of rental property may require a higher interst loan. If you are self-employed, and want to refinance property, refinancing your primary residence is a better option. If you must refinance the mortgage on rental property, you may want to try working with community banks.
Selling Your Home Requires Proof Of Ownership
When you buy a property it's important to have your name on the title and mortgage, if you have one. If you buy a property with a family member and later decide to sell, but you have no clear documentation showing you're the owner, it could be a problem. Learn the legalities of determining a home's owner to enable selling a home.
1031 Exchange: Use When Dividing Property
A property owner who inherited a 160-acre ranch has the opportunity to sell the property at considerable gain and wants to know if a 1031 exchange can be used. A 1031 exchange can be used by real estate investors when selling one investment property to buy another and defer federal taxes on the property sale. A 1031 exchange may not be used for a primary residence. A 1031 exchange can be used when dividing property, but speak to a 1031 exchange expert first.
Thankful for a Warmer Winter
I know that global warming is a concern, and that the wacky weather patterns we've seen over the past few years portend increasing wackiness in the ye...
Converting 1031 Exchange To Primary Residence
Real estate investors often use a 1031 exchange to sell one investment property and purchase another so that they may defer federal income taxes. If, after purchasing the rental or investment property, you decide to convert it into a primary residence after using a 1031 exchange, you must wait two years.
Finance Second Home With Refinanced Mortgage From Primary Residence?
What is the best way to finance the construction of a second home - a home equity loan or refinancing the primary residence's mortgage? Take the equity out of your primary home in order to finance the second house. The refinanced mortgage on the primary residence will have a lower interest rate than a home equity loan.
Verifying Residence After Homestead Exemption Claim
A homeowner who filed for homestead exemption for a second time wants to know who verifies primary residence at a particular property. While the government might not be knocking at your door to make sure you live there, a local tax collector might verify that the property is a primary residence. Phone records, mail and voter registration are a few things used to determine primary residence.
Refinance Balloon Loan? Or Pay Off With Equity From Primary Residence?
Can you refinance a balloon loan on a second property and if you are worried that interest rates are going up and that he should refinance before the loan comes due. Ilyce Glink suggests waiting to refinance until the balloon loan is due. You could also pay off the balloon loan with equity from your primary residence.
IRS Allows Exemption For Medical Reasons
Typically, you have to live in your home as a primary resident for two of the past five years in order to take a certain amount of profits capital gains tax-free. However, the IRS has recently loosened some of these restrictions for people who have to sell for medical reasons, divorce and other personal calamities. The IRS allows you to take a proportionate share of the sale tax free.