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Have you made a loan to a child or grandchild?
When making a loan, you have an expectation of getting paid back. When a family loan turns into a grant, you’re not going to get paid back. Here are 3 reasons a family loan may turn into a grant.
Please review 6 Easy Steps to Open an Estate in Connecticut.
Unless the will specifically indicates a bond is not required, the executor will need to get a Probate Bond. The coverage and insurance premium will be based on the expected size of the estate. The executor may have to front the money to get the bond as the estate checking … Continue reading »
If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable. This type of debt includes mortgages, credit cards, car loans and student loans. Lenders are required to send Form 1099-C, Cancellation of Debt, when they cancel any debt of $600 or more. The amount cancelled will be in box 2 of the form. If you disagree with the amount reported contact your lender to work out any discrepancies … Continue reading »
Mortgage Interest—Many taxpayers can deduct their mortgage interest on their residence. However, there is a limitation on this. The interest on a primary residence can only be deducted on up to $1,000,000 mortgage and $100,000 line of credit. Points paid to secure a mortgage when purchasing a new home are fully deductible. Points paid on a refinance must be amortized over the life of the loan.
What direction do you think interest rates are headed in? Homeowners have ridden the variable interest rate mortgage ride for all it's worth. The prime rate hit 20% in 1980. Since then interest rates have been in a long and steady decline. Along the way, borrowers would refinance their house and take out more cash as the value of the property was rising. Times have changed just a wee bit.