Homeowners »
Owning a home is part of the American dream and as such, Congress has passed a number of tax credits and deductions that help encourage and reward home ownership. Homeowners have the ability to deduct interest paid on mortgages and ways to delay recognition of gains on the sale of a home through a Section 1031 “Like-Kind” exchange. There are also credits available for making energy-efficient home improvements and for buying a home for the first time. The information below should be helpful in learning some of the tax benefits of home ownership.
S Corporation Does Not Qualify For First-Time Home Buyer Credit
In a case of first impression, the U.S. Tax Court held that an S Corporation is not qualified to take the popular first-time homebuyer tax credit. The first-time homebuyer tax credit was a non-refundable
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Prepaid Mortgage Insurance Premiums Get Final Regulations
The IRS issued final regulations on prepaid mortgage insurance premiums occurring after December 31, 2010. Homeowners making prepaid mortgage insurance premiums may be required to apportion that payment to multiple years. Homeowners are aware
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Federal Mortgage Debt Relief Act
Top Takeaways 1: Cancellation of Debt is Income In general, if money is borrowed from a commercial lender and the lender later cancels or forgives the debt, the cancelled amount is included in income
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Transferring the Family Home To Children
The economy is currently in a recession with the real estate market seeing some of the biggest declines. Due to this decline people’s family homes probably have not appreciated much in value. One important
Read More »Tax Court Limits Same-Sex Couple’s Mortgage Interest Deduction
The U.S Tax Court ruled that psychiatrist Charles J. Sophy, and his domestic partner Bruce H. Voss, are together limited to deducting interest on only $1.1 million indebtedness for property they owned as joint
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Home Office Deduction
Top Takeaways 1: You can deduct home office deduction To qualify for the deduction, part of your home must be used regularly and exclusively for your trade or business. To be regularly used means
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