It’s important to understand the financial nuances regarding investment real estate. Taxes, deductions, rental income, 1031 exchanges, etc., are all critical aspects to your investment finances. Understanding them is key to being successful with real estate investments.
Assets Any single deposit or a cumulative total of all non-payroll deposits that are greater than 20% of the borrower’s gross monthly income would be considered a large deposit(s). For FHA purchase transactions a large deposit is defined as any deposit that exceeds 2% of the property sales price. Both an explanation for the deposit
Here are a few recent changes that could affect you this year. Simplified Home Office Deduction The IRS now gives you a choice in how to claim the deduction for your home office. You can calculate it the way you always have, based on the percentage of your home dedicated to your business activities, which
Long term capital gain tax rates for real estate assets generally stay at 15 percent for taxpayers whose adjusted taxable income does not exceed $400,000 (individual) and $450,000 (joint). For taxpayers with an adjusted taxable income exceeding those amounts, the capital gain tax rate rose to 20 percent. The exclusion that applies to the gain
If you’re like me when it comes to refinancing, mortgages, and lenders, you have many questions and concerns. Such things as interest rates vs. property price, approval process, pre-qualifying process, taxes, home inspections, appraisals, documentation, settlement fees, credit scores, financing options and the true cost of owning property are going through your mind.
You bought your home many years ago and then bought another home as your personal residence later on. You have been renting the first one for many years. You want to stop being a landlord but your tax accountant has indicated that your gain is over $250,000 and that you will have to pay as