Thinking about selling that extra piece of residential real property? Think again. There may be more value to holding onto the property and renting it out than you realize. It's worth evaluating such potential benefits as rental income, tax deductions, property appreciation, and being your own boss -- before you put out the "For Sale" sign.
Seller financing -- when the seller of a home takes on the role of lender in a home sale -- can help both sellers and buyers in a tight credit market. Sellers may be able to sell their home faster in a slow market and get a sizable return on the investment. Buyers can benefit from less stringent qualifying and down payment requirements and better loan terms. But sellers should be aware of the risks inherent in seller financing.
I'm no math genius, but I'm getting an uncomfortable worry as I watch how my home sale is playing out. I've only owned this home a few years, and still have a huge mortgage on it—approximately $420,000. It's selling for $450,000. But the buyer is negotiating hard, expecting me to pay for various closing
Surely you didn’t buy your second property with the hope or expectation that it would decline in value. Real estate markets fluctuate, however, and the U.S. economy has not been kind to property investments in many parts of the country. After years of renting our your second property, perhaps you’re
This may not come as a surprise to you: If you sell your home, you can exclude up to $250,000 of your capital gain from tax ($500,000 if you're married and filing jointly). You must have lived in your residence two of the five years before the sale. But here's something you might not know: If you haven't lived in your home two years out of the last five, you are still eligible for a partial exclusion of capital gains if you sold because of a change in your employment, health, or other unforeseen circumstances.
When you and sell your home at a profit, you may end up owing capital gains taxes. Taxes only have to be paid on your net profit, which is the amount that exceeds your adjusted basis in the property. The larger your adjusted basis, the less taxable profit you'll have. Unfortunately, many people who own
A home office can provide a great tax deduction if you have a business, or are an employee and qualify for the deduction. (See the Nolo article The Home Office Tax Deduction, for details.) However, taking this deduction could have a tax impact when you sell your home. Home Office Within Home If your
Are you handy--a contractor, carpenter, or just good at home repair? If you're the type of person who can upgrade a fixer-upper home by yourself, you can end up earning a substantial amount of tax-free income if you buy and live in the home for at least two years. Here's how it works. You buy a fixer-upper
Selling a house will hopefully bring in a lot of money -- but first, it will cost money, for things like spiffing the house up and paying the people who will help you sell it. Fortunately, many of these expenses can be used to reduce the net amount you are deemed to receive from the sale for tax purposes
For most people, selling their home is the largest financial transaction they’ll ever enter into during their lives. Obtaining sound tax advice can be crucial. A tax pro can help you determine whether you’ll owe any tax on the sale; and if so, how much. If you do owe tax, it’s a good idea to have
Question I am in the process of preparing my home for sale. Having lived here for 23 years, it has gone up quite a bit in value, even after some ups and downs in the real estate market. I'm afraid I'm not much of a housekeeper, so the first thing my real estate agent did upon setting foot in the door
Question I'm a single person who owns a home with equity well above the applicable $250,000 home sale tax exclusion for single taxpayers. I want to avoid paying as much capital gains tax as possible when I sell my home. I'm thinking about having extensive landscaping done before I put the house up for
Question I'm getting my house ready to sell, and I admit, my carpets are beat up and filthy. I'd rip them out if the floor below wasn't also in bad shape and covered with carpeting glue. I can't afford to replace them, so my real estate agent says having them professionally cleaned is my next best bet.
Question My wife and I own a large, old home with equity over $600,00 (we hope). This is more than the $500,000 home sale tax exclusion for married couples, so we know we can face capital gains taxes on part of our profit when we sell the home. Our real estate agent tells us we should have both the inside
Question I'm getting my house ready to sell, and my real estate agent tells me that no way is anyone going to pay full price given the state of my carpeting. (I have two dogs.) Installing new carpeting is going to cost thousands, however. What's more, because I bought this house over 25 years ago, it
Question My husband and I have listed our home for sale. It’s a luxury home located in an affluent community and we have over $500,000 of equity. Thus, even though we qualify for the $500,00 home sale tax exclusion, we could be stuck with having to pay substantial capital gains taxes on the sale. Our