Real Estate

Home: Bought Home

Since most people can itemize once they have a mortgage, this also means you may now be able to deduct a wide range of other expenses, including cash and noncash donations to charities, state and local income taxes, personal property taxes, unreimbursed employee business expenses and other miscellaneous deductions. See Publication 529 for more information at www.irs.gov

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Home: Foreclosure

If your home was foreclosed or you had a short sale, you must report this on your tax return. The amount of debt forgiven by the loan holder is considered income. For tax years prior to 2017, forgiven debt due to a foreclosure or short-sale of your main home is exempt from taxes.

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Home: Refianced Mortgage

When interest rates drop, many people rush to refinance their home mortgages. Homeowners often assume that they may also deduct their points. Generally, only the points paid on the portion of the loan used to improve your home is deductible in the year you purchase a new loan.

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Home: Sold Home

You can avoid paying taxes on the first $250,000 of profits on the sale of a home if you are single, or the first $500,000 if you are married. Generally, you must own and live in the home two of the last five years. If you did not own and live in the home two of the last five years, you still may be able to use a prorated exclusion amount in certain situations (for example, if you move because of your job).

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Home: Own Rental Property

If you own rental real estate, you should know how it impacts your personal tax return. Rental income must be reported on your tax return, and generally, associated expenses can be deducted from your rental income. Reviewing answers to the following common questions regarding rental property may help you understand the tax implications of rental property ownership

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