Welcome to tax law Guide
Tax Law Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
You may also listen to this article by using the following controls.
Important Basic Real Estate Tax Law
from:Most of us are real estate investors. Simply owning our own home qualifies us as an investor and means that there are some basics about real estate tax law that we need to understand. And, much of the real estate tax law that we need to understand is fairly simple. But, a lack of understanding of these real estate tax law principles can cost us big bucks. Here are some basics we all need to know.
• Mortgage interest is deductible – When most of us buy a home, we get a mortgage. And, your mortgage interest is one of the biggest tax deductions you’ll have. Interest is also tax deductible on mortgages for homes other than our primary residence and it’s deductible on home equity loans as well as primary mortgages.
• You Can Avoid Real Estate Taxes When You Sell Your Home- According to real estate tax laws, you are tax exempt from profits when you sell your home, up to $250,000 if you file singly, $500,000 if you file jointly. This real estate tax law is designed to help families own their own homes and encourage investment in real estate. Even if your profit is greater than these amounts, you’ll pay capital gains taxes only on the amounts over the limits. To qualify for this exemption, the home you sell must qualify as your primary residence. A home qualifies as your primary residence if you have lived in it for at least two of the last five years prior to selling it.
• Reinvesting in Real Estate Saves You Taxes – Even if a home is not your primary residence, according to real estate tax laws, you can avoid paying capital gains taxes on your profits. To avoid the capital gains tax when selling real estate that is not your primary residence, you simply must reinvest your profits into another piece of real estate within two years.
• Real Estate Losses are Tax Deductible – If you sell a piece of real estate for less than you’ve put into it, you can claim it as a loss, or tax deduction, when you file with the IRS.
As you can see, understanding the deductions due you under real estate tax law are very important to the bottom line taxes you’ll pay each year. Work with your tax professional to ensure that you’re getting all the real estate deductions you’re due each and every year.
Tax Law News
Sonnenschein Law Firm Can't Represent Ex-BDO Chairman, FederalJudge Says
A federal judge disqualified the law firm Sonnenschein, Nath & Rosenthal LLP from defending BDO Seidman’s former chairman, Denis Field , who is charged with participating in a scheme to sell illegal tax shelters.
Read more...Study: Health law's tax credit for small business could affect millions
A new Commonwealth Fund report estimates that "about 16.6 million workers are employed by small businesses that are eligible for health insurance tax credits" under the new health law but only 3.4 million of them are at companies that will take advantage of the credits, The Washington Post reports, adding that those businesses already offer their employees health insurance.
Read more...Tax caps will force cities to run leaner, expert says
Size will matter if Indiana voters approve a referendum making property tax caps part of the state constitution, a professor and tax expert told the Quality of Life Council on Friday. Not everyone will see relief, but homeowners with properties with higher assessed valuations, larger taxing districts, particularly cities and towns with a number of taxing entities in them, and landlords will ...
Read more...Tax-exempt groups must file with IRS by Oct. 15
Small, tax-exempt organizations that have not filed an annual return with the IRS for the past three years are at risk of losing their status if they don't file before Oct. 15.
Read more...Law firm might have misguided Midland
A Chicago-area law firm that has represented the Midland School District for several years gave the top administrator advice that appears to conflict with state law and public statements from the Illinois Attorney General's Office on the conduct of public meetings, the Journal Star has learned.
Read more...Tax Relief: President George W. Bush's Tax Cuts Should Continue, Says President Obama
Tax relief talk is up in the air, as the looming debate in Congress over whether to continue income tax cuts for the wealthy continues. President Barack Obama proposes that the tax cuts enacted in 2001 and 2003 under President George W. Bush should continue for all but the wealthiest Americans, namely couples making more than $250,000 or individuals who earn more than $200,000. This is to be ...
Read more...Tax election may be in ESD No. 1’s future
A plan to double Wharton County’s fire protection tax was quashed Thursday, but could be put before voters in less than a year.
Read more...