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2006 Tax Law Article
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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.
2006 Tax Law News
Most industries were hit harder by the expanded business-tax law - Houston Chronicle
Most industries were hit harder by the expanded business-tax law Houston Chronicle, United States - By PEGGY FIKAC and JANET ELLIOTT The Texas Legislature in 2006 replaced the Franchise Tax with an expanded Business Tax, the state's main levy on businesses ... Texas News Briefs |
Tax book as usual or unfair boasting? - Columbus Dispatch
 Columbus Dispatch | Tax book as usual or unfair boasting? Columbus Dispatch, OH - In 2006, Taft's tax commissioner, William W. Wilkins, included a letter in the booklet noting that Ohio's income-tax laws had changed "and this will have a ... |
The Deficit Spending Blowout - Wall Street Journal
 FOXNews | The Deficit Spending Blowout Wall Street Journal - That 2006 Democratic vow to pass "pay as you go" budgets seems like a lifetime ago, which in political terms it was. We've long argued that deficits per se ... Video: Obama to Bring Accountability to Spending Plan Obama to Continue Bush's Tax-Cutting Orgy? Banks, homebuilders could convert losses into cash with Obama tax ... |
Obama's Regulatory Czar Likely to Set a New Tone - Wall Street Journal
Obama's Regulatory Czar Likely to Set a New Tone Wall Street Journal - By JONATHAN WEISMAN and JESS BRAVIN WASHINGTON -- Cass Sunstein, a Harvard Law School professor who pioneered efforts to design regulation around the ways ... |
Keating Muething & Klekamp Announced Today That Cincinnati City ... - MSNBC
Keating Muething & Klekamp Announced Today That Cincinnati City ... MSNBC - "KMK's reputation as a law firm is superb. Also, I will have the opportunity to work with Dick Spoor, who, I believe, is the best bond attorney in the ... |
When Life Is Just a Bowl of Freebies - Wall Street Journal
When Life Is Just a Bowl of Freebies Wall Street Journal - Based on 2006 tax returns, the Sugar Bowl's Paul Hoolahan makes more than $450000 a year, the Outback Bowl's Jim McVay nearly $500000, and Fiesta and ... |