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.
IRS Announces New Web Page for Those Facing Foreclosure
The IRS announced today that it has posted a special web section (www.irs.gov/newsroom/article/0,,id=174034,00.html) at its website for homeowners who...
Should Ed Marry Only for Love? What About Taxes
Ed called into the Clark Howard show to talk about selling his house. He bought it 16 years ago for $150,000 and now it's worth $800,000. Great invest...
Estate Planning For Taxes Includes Property Inheritance
With estate planning you can either leave a property to heirs through a will thus creating an inheritance, or gradually give your family members shares of the property through gifts. From a tax perspective, giving property as an inheritance is better. Another factor to consider when bequesting property is how many and which family members may be interested in the property.
Avoiding Capital Gains Tax On Second Home
How can you avoid capital gains tax? If you have a second home that you have been renting, you might face a large capital gains tax, especially if you have been taking depreciation on the investment property. The IRS has very specific requirements for how to handle primary and secondary property. You may be able to use a 1031 exchange if you move back into the rental property for two years.
Tax Hints For Selling Rental Property
Homeowners lived in a home for 2 years and then rented it out for the past two years. They want to continue renting it out, but they will sell now if that's the only way to avoid capital gains tax. The IRS website is a good place to check for the tax implications before making any real estate decisions.
Trust Beats Quit Claim Deed For Taxes
When your parent wants to put your name on the title to his or her home, what's the best option? Is a trust or a quit claim deed the better way to go? A living trust is better than a quit claim deed because of the cost basis of the home. Cost basis is the property value that's used to calculate capital gains taxes later on when you go to sell the home.
Pay Off Mortgage Loan With Low Interest Rate?
When you have extra money is it better to pay off your mortgage or invest the money? It depends on the type of the mortgage loan and the interest rate on the mortgage loan. Paying off a mortgage may also depend on what stage of life you're in - whether you're still working or in retirement. In this case, Ilyce suggests waiting to pay off the mortgage loan because of its low interest rate.
Estate Planning Includes Determining Trustees
When parents want to bequest real estate to their children they may want to use a quit claim deed when a trust is the better option. When you set up a trust you have to figure out who will be the executor and who will be the beneficiaries. Learn about the benefits of placing a property in trust versus using a quit claim deed. And discover what role the executor plays in the transaction.
Selling Investment Property Includes Paying Taxes
Selling an investment property includes paying income or capital gains taxes, depending upon where you live. After you pay capital gains taxes on your profit from selling an investment property, how much money do you have left? One possible scenario includes real estate commission costs, capital gains taxes and state income taxes. Learn about how to calculate taxes when selling investment property here.
Pay Off Mortgage Before Retiring
A homeowner is thinking about paying off his mortgage before he retires later in the year. Refinancing the mortgage would be better due to the large tax bill he would have to pay to remove money from his retirement account. A fee-only financial planner can help work out how to best pay off the mortgage and discuss the impact of the interest deduction on his income taxes by keeping the loan, the costs in terms of income taxes paid by him for withdrawing the money from the pension plan, and planning for his retirement.