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Steve Waddicor's Blog

By Steve Waddicor | Agent in Fall River, MA
  • Ten Tax Tips from the IRS for Individuals Selling Their Home

    Posted Under: Home Selling in Fall River, Financing in Fall River  |  August 6, 2012 10:13 AM  |  479 views  |  No comments

    Ten Tax Tips from the IRS for Individuals Selling Their Home

    The Internal Revenue Service has some important information for those who have sold or are about to sell their home. If you have a gain from the sale of your main home, you may be able to exclude all or part of that gain from your income.

    Here are 10 tax tips from the IRS to keep in mind when selling your home.

    1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.

    2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).

    3. You are not eligible for the full exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.

    4. If you can exclude all of the gain, you do not need to report the sale of your home on your tax return.

    5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.

    6. You cannot deduct a loss from the sale of your main home.

    7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude. Most tax software can also help with
    this calculation.

    8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.

    9. Special rules may apply when you sell a home for which you received the first-time homebuyer credit. See Publication 523, Selling Your Home, for details.

    10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive mail from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.

    For more information about selling your home, see IRS Publication 523, Selling Your Home. This publication is available at IRS.gov or by calling 800-TAX-FORM
    (800-829-3676).


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    For more about the Greater Fall River area, visit my website at www.stevew-homes.com or contact me directly at 508-558-8035.


     

    • As we approach the end of October the real estate market is begging for qualified buyers

      Posted Under: Market Conditions in Fall River, Home Buying in Fall River, Financing in Fall River  |  October 21, 2011 2:09 PM  |  220 views  |  No comments

      As we approach the end of October the real estate market is begging for qualified buyers. There is plenty of inventory and the combination of price and mortgage rates couldn’t be better.

       

      Over the past month 85 single family homes sold in the greater Fall River area, including Fall River, Somerset, Swansea, Westport, Dartmouth Freetown, Dighton Buyers wanted in Greater Fall Riverand Berkley. The priciest property included 2 historic capes on 95 acres, a pond, barn and greenhouse and sold for over 2 million dollars. At the other end of the spectrum was a 5 room, 951 square foot cape, in need of updates, on an 11,400 square foot lot, which sold for $75,000. The remaining 83 properties ranged in selling price from $80,000 to $790,000, had an average list price of 265,196 and average sale price of $249,942.

       

      One of these fortunate buyers found 3 bedroom, 2 bath classic cape, in move in condition, in Somerset, with a wood burning stove, hardwood floors throughout, a 3 season room overlooking a private back and beautiful in ground pool for $220,000. Another lucky family is living in their well maintained, 3 bedroom ranch in Dartmouth. This one included a new furnace, Harvey windows, an updated kitchen with Corian countertops, gleaming hardwood throughout, a fireplace, off street parking for 5 cars and attached carport all for $205,500.

       

      Interest rates are at an all time low and that can be more important than the house price over the life of a mortgage. At today’s rates the monthly payment on a  $200,0000 property would be right around $900 a month. Add to that taxes, PMI and insurance and you could expect to be living in your own home, where you get to decide what color to paint, how to decorate for the holidays, where your kids can play in the yard, or you can have a garden, and enjoy all the plusses of owning your own home for roughly $1250 per month.

       

      Homes for sale in greater Fall RiverIn the greater Fall River area there are 288 single family homes for sale between $150,000 and $250,000, and another 331 between $250,000 and $400,000. If you have good credit, steady income, and some savings for a down payment, this is no better time than NOW to be buying a home.

       

       

      For more about the Greater Fall River area, visit my website at  www.stevew-homes.com  or contact me directly at 508-558-8035.

    • Back-to-School tax Tips for Students and Parents Paying College Expenses

      Posted Under: Schools in Fall River, Financing in Fall River  |  August 16, 2011 2:24 PM  |  544 views  |  2 comments

      It’s that “back to school” time of year again and I thought I’d share some timely Back-to-School tax Tips for Students and Parents Paying College Expenses . Be sure to take advantage of these opportunities to save you $$$$$. The following information is from the IRS Summertime tax tip # 2011-18.

      Whether you’re a recent graduate going to college for the first time or a returning student, it will soon be time to get to campus – and payment deadlines for tuition and other fees are not far behind. The Internal Revenue Service reminds students or parents paying such expenses to keep receipts and to be aware of some tax benefits that can help offset college costs.

       bag of money


      Typically, these benefits apply to you, your spouse or a dependent for whom you claim an exemption on your tax return.

      1. American Opportunity Credit  This credit, originally created under the American Recovery and Reinvestment Act, has been extended for an additional two years – 2011 and 2012. The credit can be up to $2,500 per eligible student and is available for the first four years of post secondary education. Forty percent of this credit is refundable, which means that you may be able to receive up to $1,000, even if you owe no taxes. Qualified expenses include tuition and fees, course related books, supplies and equipment. The full credit is generally available to eligible taxpayers whose modified adjusted gross income is below $80,000 ($160,000 for married couples filing a joint return).

      2. Lifetime Learning Credit  In 2011, you may be able to claim a Lifetime Learning Credit of up to $2,000 for qualified education expenses paid for a student enrolled in eligible educational institutions. There is no limit on the number of years you can claim the Lifetime Learning Credit for an eligible student, but to claim the credit, your modified adjusted gross income must be below $60,000 ($120,000 if married filing jointly).

      3. Tuition and Fees Deduction  This deduction can reduce the amount of your income subject to tax by up to $4,000 for 2011 even if you do not itemize your deductions. Generally, you can claim the tuition and fees deduction for qualified higher education expenses for an eligible student if your modified adjusted gross income is below $80,000 ($160,000 if married filing jointly).

      4. Student loan interest deduction  Generally, personal interest you pay, other than certain mortgage interest, is not deductible. However, if your modified adjusted gross income is less than $75,000 ($150,000 if filing a joint return), you may be able to deduct interest paid on a student loan used for higher education during the year. It can reduce the amount of your income subject to tax by up to $2,500, even if you don’t itemize deductions.

      For each student, you can choose to claim only one of the credits in a single tax year. However, if you pay college expenses for two or more students in the same year, you can choose to take credits on a per-student, per-year basis. You can claim the American Opportunity Credit for your sophomore daughter and the Lifetime Learning Credit for your senior son.

      You cannot claim the tuition and fees deduction for the same sback to schooltudent in the same year that you claim the American Opportunity Credit or the Lifetime Learning Credit. You must choose to either take the credit or the deduction and should consider which is more beneficial for you.

      For more information, visit the Tax Benefits for EducationInformationCenter at www.irs.gov or check out Publication 970, Tax Benefits for Education, which can be downloaded at www.irs.gov or ordered by calling 800-TAX-FORM (800-829-3676).


      To learn about the Greater Fall River area real estate market, visit my website at  www.stevew-homes.com  or contact me directly at 508-558-8035.

    • Now is the time to buy a home in the Greater Fall River area!

      Posted Under: General Area in Fall River, Home Buying in Fall River, Financing in Fall River  |  August 5, 2011 12:17 PM  |  213 views  |  No comments

      Now is the time to buy a home in the Greater Fall River area! There are tons of homes on the market and mortgage rates are terrific. ( See Mortgage Rates Reach Record Lows). With decent credit and as little 3.5% down, you could be in your own home in no time. Programs are available for first time home buyers with 10% down (and good credit) to get a 30 year fixed loan in the 4’s with no PMI! Many homes in rural areas qualify for USDA zero down, 30 years fixed loans with no PMI. Visit USDA site for info.

       

      I recently searched MLS for single family homes currently for sale in Fall River and found there are 129 homes available with asking prices between $150,000 and $250,000.  In the same price range Somerset has 50. Swansea has 43, Dartmouth has 45, Westport has 11, Freetown has 14, and Dighton and Berkley each have 6. That’s just over 300 homes for sale in the Greater Fall River area, and if you’re in the market for something a little more pricey, these same communities have another 426 ranging in price from $250,000 to $500,000, and yet another 136 more ranging in price from $500,000 to one million dollars!

       

       

      If you have been thinking about finding your dream home, or maybe you would like to take advantage of bargain prices for an investment opportunity, now is the time to act. Housing inventories include a mix of conventional, short sale, and bank owned properties. Some are in pristine, move in condition, some are handy man specials and fixer uppers, and some require complete rehab, but the selection is great, prices are down and financing terms are tremendous! With mortgage rates at record lows, now is the time to buy a home in the Greater Fall River Area!Sold sign

       

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      To learn more about the opportunities in the Greater Fall River area, visit my website at www.stevew-homes.com or contact me directly at 508-558-8035.

    • Some local towns in the Greater Fall River, MA area qualify for no-down payment loans.

      Posted Under: Home Buying in Fall River, Financing in Fall River, In My Neighborhood in Fall River  |  August 4, 2011 1:38 PM  |  257 views  |  No comments

      Some local towns in the Greater Fall River, MA area qualify for no-down payment loans.

             

       

      The following article from REALTOR® Magazine Online describes a fantastic new home financing program available for buyers in rural areas. In our Greater Fall River area eligible towns include parts of Westport, Dartmouth, Swansea, Dighton, Berkley, Freetown MA., and Tiverton and Little Compton RI. Be sure to visit the U.S. Department of Agriculture Rural Development Web site for more information on property and income eligibility, and loan program basics.

       

      Rural Buyers Can Get No-Down Payment Loans

      Daily Real Estate News | Wednesday, August 03, 2011

      Total Mortgage Services, a national mortgage lender, is offering rural home buyers 100 percent financing or closing cost assistance.

      Through its new Guaranteed Rural Housing Loan Program, insured by the U.S. Department of Agriculture, the lender will offer low- and moderate-income residents living in rural areas (usually defined by a population of 10,000 or less or, in some cases, 20,000 or less) several affordable housing finance options:

      ·    No down payment required.

      ·    Closing costs can come from any source, including gifts.

      ·    Competitive 30-year fixed rates.

      ·    No monthly mortgage insurance premiums.

      Borrowers can obtain a loan to purchase a new or existing home that is located in a designated rural area. 

      “The USDA home loan program is one of the most compelling mortgage products in today’s challenging mortgage marketplace and offers real solutions for rural borrowers, especially those in need of 100 percent financing or with lower credit scores," John Walsh, president of Total Mortgage, said in a statement.

       

      To read more about eligibility requirements, visit the U.S. Department of Agriculture Rural Development Web site. 

      By REALTOR® Magazine Online

      To learn more about the Greater Fall River area and exciting opportunities available here, visit my website at www.stevew-homes.com or contact me directly at 508-558-8035.

     
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