Taxes are what you pay to the federal, state and local governments where you live. Different types of taxes include income taxes, capital gains tax, sales tax, estate tax and real estate taxes such as property tax. Learn how to bequest property and do transactions in a way that will help you pay less taxes and follow the law.
What Happens To Your Taxes When You Sell An Inherited Home?
What happens to your taxes when you sell an inherited home? Depending on the state you live in, you may not have to worry. Q: My dad passed away awhile ago. He owned his home and had no mortgage. We recently sold his home for $300,000. How do I figure how much I will have [...]
Thinking About Prepaying Your Mortgage Taxes? Think Again.
If you’re thinking about prepaying your mortgage loan taxes, you should think again. This move can do more harm than good. Q: If my tax payment is included in my mortgage payment, am I allowed to go to the local tax office and prepay the taxes before the due date in order to reduce my [...]
What’s the Best Way to Transfer a Home Title to a Family Member Who’s Been Living in the Home?
What’s the best way to transfer a home title to a family member who’s been living in the home? Hint: A quitclaim deed may not be sufficient enough. Q: Hi Ilyce and Sam! I have been a weekly reader and sometimes a daily reader of your column ever since you took over Robert Bruss's column [...]
Taking Out a Mortgage With My Mother-In-Law: Good Idea?
My husband is going to take out a mortgage with my mother-in- law, put the house into a trust, name themselves as the trustees, and my husband and his siblings as the beneficiaries. Is taking out a mortgage with my mother-in- law a good idea? Q: My husband and I made on offer to my [...]
How to Sell Your 1031 Exchange Inheritance
How to sell your 1031 exchange inheritance in order to avoid complications with taxes after the sale. Q: I have inherited a 1/3 interest in a property that is part of a 1031 exchange. The total value of the property is being split between 3 heirs and is worth about $150,000. Is there any way [...]
Filing Income Taxes When You Move Out of State
Filing your 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 [...]
Will a Loan From a Family Member Impact My Taxes?
Will a loan from a family member impact my taxes? The IRS will treat the loan differently, depending on how you pay it back. Q: My mom is giving us money to buy a vacation home. We will pay her back monthly but it's more of a handshake agreement. Will there be any tax implications [...]
7 Big Life Events That Might Impact Your Taxes
The IRS opens for business next week, and millions of Americans will start filing their federal and state tax returns. Online tax software companies guide you through the tax-filing process by highlighting big life events during the past year, but you can do the same thing on your own. Would what happened last year affect [...]
Will Tax Reform Kill The Housing Market and Tank Home Prices?
Is the Tax Cuts and Jobs Act going to kill the housing market and tank home prices? With the passage of Tax Reform in the House of Representatives, real estate industry groups have gone on the warpath to prevent legislation they believe is ultimately damaging to real estate. Is tax reform going to kill the [...]
What Are the Implications of Transferring an Investment Property to an LLC?
Purchasing an investment property as an individual that you plan to transfer to your LLC later can have a ripple effect on your liability and property taxes. Q: I own a limited liability company (LLC) that holds some rental properties free and clear. The commercial lenders I speak with aren’t interested in a loan smaller [...]