Thanks for stopping by - This is a work in progress, so please feel free to jump in with me - any comments, feedback, or participation in the conversation is encouraged! You might want to want to sign up for email updates on the right, or subscribe to my RSS feed. Thanks for visiting!
Glad to have you back - have you considered signing up for email updates on the right, or subscribing to my RSS feed? Thanks for visiting!
With tax season officially open for the 2006 filing year, its time to refresh the memory on some important tax issues related to real estate. I see a great deal of confusion and misinterpretation of tax rules when meeting with people in my mortgage planning practice. Realty Times has a good reminder on the homestead exepmtion that Bill Clinton gave us with the Tax Reform Act of 1997. Make sure you know the rules for this tax treatment on homes in the year they are sold – especially if you are thinking about renting the home out at any point. Its also important to know the difference between mortgage interest expense and investment interest expense when trying to write off those mortgage and HELOC dollars. I see the majority of people surprised when confronted with the rules for deduction of mortgage interest. The IRS is talking about taking a closer look at these deductions to make sure tax-payers are walking on the right side of this fine line…
You can find a lot of tax resourse on the IRS website, but you may want to consider letting a professional CPA handle your taxes for you. The more complicated your return, the more value a tax planner stands to offer. Let me know if you need help locating a good one.