Posts Tagged ‘Cost Basis’


How to Declare a Casualty Loss From Hurricane Sandy

 

Hurricane Sandy has left her mark.  This included power outages, significant property damage and, sadly loss of life.


When (and How) to Declare the Sale of Your Primary Residence

Recently a new client came to us.  The Internal Revenue Service (“IRS”) was looking for $262,532 in back taxes.  This was from the sale of their home two years ago.

Form 1099-S Reporting Requirements

Attorneys that handle real estate closings must report the proceeds on IRS Form 1099-S, Sale of Real Estate Property.  There is an exception to this however. If the seller of the real estate signs a certification, the attorney does not need to issue the 1099.  … Continue reading »


3 Reasons You Likely Won’t Pay Income Taxes When You Sell Your Home

1) You Don’t Have a Capital Gain

 

Due to the housing market, many homeowners no longer have a gain in their home. A gain is the sales price minus the cost basis. The cost basis is generally the purchase price of the property plus improvements. Improvements would include things like a new roof, new heating system or a deck being added to the home. Unfortunately many people have seen any potential capital gain disappear in recent years due to … Continue reading »


5 Reasons Donors Should Give Appreciated Property

Donors should give appreciated property to their favorite charity. Appreciated property is property whose Fair Market Value exceeds the cost basis.  Cost basis is generally what was paid for an item.


The Difference Between an IRA and a Roth IRA

Deciding whether to open an IRA or  a Roth IRA is a major decision with potentially large financial consequences. Both forms of the IRA are great ways to save for retirement, although each offers different advantages and rules. 


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