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.
Let Your Retirement Grow In A Roth IRA
One of the great tax saving benefits created by Congress over the past few years is the Roth IRA. One of the reasons Roth IRAs have become so popular with seniors and baby boomers is that they offer four distinct advantages over the conventional IRA. For example, your earnings in a Roth IRA account grow tax free forever.
Lower Your Tax Bill
Two weeks to go until your federal and state income taxes are due. Although tax brackets went down this year, many Chicagoans still feel their taxes are too high. If you haven't filed, there are some ways you might be able to lower your tax bill.
Get Your Taxes Done For Free
Tax time means paperwork, which is especially tough for those taxpayers who either lost a job or took on a second job last year to make ends meet. Tax preparation services can help, but you'll pay hundreds of dollars to have your tax forms filled out. The good news is, if you earned less than $35,000 last year, you can get your taxes done, for free, in Chicago.
Does Paying Property Tax Give Ownership?
Does paying property tax on a family member's property give the tax payer ownership? Generally, the payment of real estate taxes alone is not sufficient to give the tax payer ownership rights to a property. In addition to paying property taxes, you likely should have lived in the home and paid for its upkeep.
Protect Investment With Title Insurance
Before you go to closing, ask about your title insurance protection, and be sure to protect your home with an owner's title insurance policy. Just because there is a title commitment does not guaranty that the seller can convey "good" title to a buyer. If the title company has done a good job searching the title to the property, you, as the buyer, will have a good understanding of the issues that will affect your title.
Home In Foreclosure – File For Bankruptcy?
Homeowners were served with foreclosure papers - is filing for bankruptcy their best option? Ilyce and Sam tell the homeowners not to file for bankruptcy, but to talk with their mortgage lender about paying their mortgage, even though they have been served with foreclosure papers. Ilyce and Sam say bankruptcy should be the homeowners' last option, despite being served with foreclosure papers.
Making the Most of Real Estate Investments
With real estate investments, you need to evaluate your options and time the sales appropriately to make the most of your investments. Will the property continue to appreciate? What do you want to do with the money? Will you ever make the investment property your primary residence?
Avoiding Capital Gains Tax on Condo Sale
A condo owner makes money on the sale of his condominium but still needs to pay taxes. He never lived in the investment property and it is considered a short-term investment. Short-term investments fall under the maximum tax rate. With other kinds of investment property, you may be able to avoid capital gains tax with a 1031 exchange or a Starker Trust
Tax Breaks Available For Homeowners
Most homeowners know that they can deduct the mortgage and real estate taxes they pay from their federal income tax forms. But there are some other deductions you may be able to take as well. In addition to the regular tax breaks for your mortgage and home equity loan interest you pay, you can also get a regular deduction if you have a home office. One of the great tax benefits is the ability to take your profits tax-free when you sell your home.