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

July 10, 2012 Tax News 0 Comments Print this page Share

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 … Continue reading »

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When is Cancelled or Forgiven Debt Taxable?

January 25, 2012 Tax News 2 Comments Print this page Share

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 »

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Rental Property Owners Get Relief from 1099 Reporting Requirements

November 28, 2011 Tax News 5 Comments Print this page Share

Originally under the Small Business Jobs Act, those who received rental income from real estate were going to be considered, to be engaged in a business, and were going to be subject to the requirements to issue 1099 information returns.  This act was going to make owners of rental properties report payments totaling $600 or more during the course of the year for any expenses relating to these properties. The provision required even the smallest property owners — those who … Continue reading »

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The Last Mortgage Refinance

May 13, 2011 Tax News 8 Comments Print this page Share

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. 

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