May 16, 2007
- Delinquent Borrowers May Get a Tax Surprise
Delinquent Borrowers May Get a Tax Surprise
For homeowners seriously delinquent on their mortgages and hoping for some relief, the IRS has bad news: If your lender agrees to modify your loan and forgive any part of your debt, you could owe federal income taxes on the amount forgiven.
When personal debts are canceled by a creditor, [...]
May 15, 2007
- Property Tax Assessments on the Rise
Property Tax Assessments on the Rise
Falling home prices and rising property-tax assessments are fueling a grass-roots tax rebellion. Homeowners are lodging record numbers of appeals, fighting against rising assessments that are, in many cases, pushing up annual tax payments significantly.
The Problem: Tax assessments didn't keep pace with soaring property values in recent years. Now, assessments [...]
April 13, 2007
- Income Tax Savings
Income Tax Savings
Because of income tax deductions, the government is basically subsidizing your purchase of a home. All of the interest and property taxes you pay in a given year can be deducted from your gross income to reduce your taxable income.
For example, assume your initial loan balance is $150,000 with an interest rate of [...]
April 11, 2007
- Property Taxes in Your State
Property Taxes in Your State
Just as the housing boom has worn thin, property taxes are catching up with the one-third rise in the median value of all homes since 2000.
Property taxes — the principal source of revenue for cities, counties and school districts — are calculated by multiplying the nominal property-tax rate by the assessment [...]
