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.
How Much Do I Have to Pay in Real Estate Taxes?
How much do I have to pay in real estate taxes? The answers lie in the purchase contract you signed at closing. Q: I am trying to find out about the real estate taxes on the home I bought just about two years ago. What I need to know is how much of the taxes [...]
What is a Good Salary? The Answer Will Surprise You
What is a good salary? The answer is surprising. The quality of life you can have on a certain salary varies drastically from city to city. A recent study by GOBankingRates looked at just how far a $100,000 annual salary goes in major cities across the country. Basic expenses, such as housing, utilities, groceries, transportation, [...]
What Happens to Your Taxes When You Rent-to-Own to a Family Member?
What happens to your taxes when you let a family member rent-to-own your property? The IRS has specific definitions to help, but they can get complicated. Q: I rented our old house to my daughter and her spouse as a rent-to-own property. I told them when they paid enough money I would sign the property [...]
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 [...]