Will a 3.8 percent tax be imposed on every home sale? In a word: no. Read more on Q&A Fridays with Jason.
In this economy, more people are looking at renting a home or apartment instead of buying a home. While my primary focus is on taxes, there is always much more to consider than just tax consequences: Can you afford it? This is the single most important question to answer. Regardless of the available tax deductions, […]
The homebuyer credits available to some taxpayers who purchased homes in 2008, 2009 and part of 2010, has caused administrative headaches for the IRS. The Treasury Inspector General for Tax Administration (TIGTA) says the IRS has correctly processed the vast majority of homebuyer credit claims, but has also incorrectly handled notices sent to tens of […]
An e-mail is making the rounds, stating: “did you know that if you sell your house after 2012 you will pay a 3.8% sales tax on it? That’s $3,800 on a $100,000 home.” Is this true? The answer is yes, but only for people with incomes above $200,000 and who sell their home for a […]
Taxpayers who have claimed the homebuyer tax credits over the last couple of years may have to repay some of the credit, starting with 2010 tax returns. The rules differ depending on which credit you claimed. $7,500 Credit for Home Purchases Between April 8, 2008 and December 31, 2008 The original First-Time Homebuyer Credit was […]
A visitor to this website asks the following question: I bought my house almost 4 years ago for $50,000, put $10,000 in it for improvements. If I sell it for $72,000, and don’t purchase another house, just rent, what are the pros and cons of that? Answer: There is good news here, tax-wise. A single person […]