June 12, 2007
- Consider Income Taxes When Relocating
Consider Income Taxes When Relocating
As many states close their budget gaps by raising taxes, an important factor in the calculus of where to live is shifting, particularly for retirees or people with an option of choosing between neighboring states. In the past 3 years, 26 states have raised taxes significantly in one way or another.
Of [...]
June 6, 2007
- Vacation Homes Can Raise Your Tax Load
Vacation Homes Can Raise Your Tax Load
People who spend a lot of time relaxing in one state while calling another home can trigger state income tax in both. A common way to go wrong is to hold on to a condo and social connections after moving away to a tax haven such as Florida or [...]
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 [...]
