If your carpet is still in good condition then I would recommend just having it professionally cleaned. You don't need to completely rip it out and change it. You might consider changing it out if your carpet is a weird color that doesn't suit many people, though.Otherwise, just leave it in and let the new owner decide if they want to keep it or not.... more
Hi Michael, As a real estate professional, I know that its important for my clients to understand the tax break opportunities between Residential and Investment properties. I found this article by
by Travis Ames, Demand Media.( Nest 1997-2014) That will help you understand the opportunity cost when finding a home for sale.
The home where you live is considered your primary residence. With this in mind, there are a number of write-offs available for you to use. IRS Form 1040 features a number of line-item deductions that you can use to lessen the blow of your tax bill. These deductions include your mortgage interest, property taxes and even the interest on your home equity loan or line of credit for up to $100,000.
Selling Your Residential Property
There are major tax implications for selling your home. If you have lived in the home for two years out of the five prior to its sale, you can make up to $250,000 in profit on it without having to pay any sort of tax. Anything over $250,000 is considered capital gains, which will incur a 15 percent tax. Married couples filing jointly can make up to $500,000 in profit without being hit with the capital gains tax. You can sell a home that qualifies as a primary residence once every two years without any type of penalty or tax, as long as you have lived in that property for two out of five years prior to the sale.
While there are several immediate tax perks associated with having a primary residence, investment properties are not as favorable when it comes to deductions and credits. Interest on secondary property can be written off for one building only. However, if you rent your investment property, there are a number of write-offs available -- for repairs, for example, or pest control, supplies, cleaning, utility expenses and management costs. Insurance premiums are also deductible for real estate investments.
Selling Your Investment Property
Unlike your residential property, you will have to pay a capital gains tax on any profits you make from the sale of an investment property. The IRS treats any property that you have not lived in for two out of the five years prior to a sale as an investment property, meaning all profits will be taxed. You must report any profits after the sale. Otherwise you will risk being penalized by the IRS. However, you can buy and sell multiple investment properties each year without waiting for a two-year window as you would with residential property.
Tax Deferral on Profit
You can defer paying taxes on your property when you sell if you quickly buy a similar property with the proceeds. Known as a 1031 exchange after the section of the tax code that allows it, the exchange process can be used on a private home. But it is far more commonly used by property investors who use it to defer paying taxes on their transaction gains -- in some cases, for life. In order to accomplish a 1031 exchange, you must declare your intent to do one and you must hire a qualified third party to handle the proceeds of the transactions and document that all the proper rules and regs were followed."
Travis Ames, Demand Media.( Nest 1997-2014)... more
For more details about 203k loan, visit www.cfs203k.com. CFS Mortgage and RenovationReady brings together more than 50 years of traditional and renovation lending know-how. Let their team of experts help you.... more
Whatâ€™s the Best Day to List a Home?Found on the MRIS Round up page-something we always suspected!March 19, 2013 | by JessBelow is a reprint of an article featured on the Wall Street Journal online
Like Catherine mentioned with the VA loan, there are many factors that can get you approved for a loan. 640 is the minimum for FHA and conventional financing. With VA loans you have different options to go by... more
I would discuss this with your Broker in Charge. This could be an ethics violation if it was the agent, if the seller - well, they are not bound by our rules and regs. Was nice you buyer called you - they seem to be very loyal to you.... more
There is nothing to stop the Seller from contacting the buyer directly after months have passed. But the agent should have gone through you for contact. Your exclusive agency agreement should outline what period you represented the buyer and what time period you are covered for properties shown during your exclusive contract. Sticky situation. I'd ask the buyer to let the seller/seller's agent know that they are still working with you and they should contact you for any communication.... more