Tuesday, July 9, 2013
Monday, April 1, 2013
Tuesday, March 26, 2013
Study: Nearness to Public Transportation Strengthens Home Values
Monday, March 11, 2013
Monday, February 25, 2013
Monday, December 31, 2012
Saturday, October 13, 2012
Saturday, April 28, 2012
Monday, March 19, 2012
I inherited my parents’ home, which is worth more than my current one. I’m thinking of claiming my parents’ home as my principal place of residence so that I can sell it in two years and not have to pay capital gains. I’m changing my homeowner’s exemption on my tax bill to my parents’ house. What other things do I need to do so that I won’t have to pay capital gains taxes on my parents’ house when I sell it?
Why go to the bother of trying to provide proof of your living in your parents’ home when you could probably sell the house now and pay no or little capital gain tax? When you inherited your parents’ house, you got a step up in its basis. In other words, the fair market value (FMV) of the property on the date of the death of your last parent is its new cost basis. And if it is more beneficial to you, the government says you can select another date to lock in the FMV as long as the date is between the date of death and the nine months afterwards. If the difference between the FMV and the price you sell the house for is not that great, the homeowner’s exemption and principal residence issues are moot. If you sell the house sometime during the nine months following your parent’s death, the price the house sells for essentially is its FMV. Thus, if you use the date of sale as the FMV date, the sale price and basis are the same, meaning there is no capital gain tax.
You could also sell your parents’ home, sell your own house and use the money realized on both to purchase another home and likely pay no capital gains. As long as you’ve lived in your current home for at least two years out of the past five years, it qualifies for the exemption on capital gain tax ($250,000 if you are single, $500,000 if you are married). If you really want to wait two years before selling the house, you will have to physically move into it in order to claim the homeowner’s exemption when you sell it. But I don’t think that would be in your best financial interest.
Rob Seltzer is principal of Robert Seltzer, CPA, PFS, in Beverly Hills. You can reach him at (310) 278-9944. Have a question for a CPA? Ask it here.
In accordance with IRS Circular 230, the information on this website is not intended or written to be used, and cannot be used as or considered a "covered opinion" or other written tax advice and should not be relied upon for the purpose of avoiding tax-related penalties under the Internal Revenue Code; promoting, marketing, or recommending to another party any transaction or tax-related matter(s) addressed herein; for IRS audit, tax dispute or other purposes.
Wednesday, November 2, 2011
Saturday, October 22, 2011
Thursday, October 6, 2011
Instead, the country could be headed for a 21st century version of a depression, an economic term that, unlike a recession, defies a standard definition but instead conjures images of soup lines, 25 percent unemployment and a devastated economy.
Just 207 new foreclosures were filed in the third quarter, down 33 percent from the 311 filed in the second quarter, and down 69 percent from the 659 new filings in the third quarter of 2010. About half the new foreclosures were filed on co-ops.
Queens led all boroughs with 82 foreclosures, or 39 percent of the city's foreclosures. However, the number was still 28 percent less than it was last quarter, and 79 percent below the figure recorded in the prior year quarter.
In Manhattan and Brooklyn the quarter-over-quarter decrease was 45 percent, while Bronx saw a 26 percent decline. Staten Island foreclosures remained constant.
However, PropertyShark said the decreases were not necessarily due to an improved market. Instead, they were likely caused by the increased pressure on banks and lenders to pay close attention to the paperwork involved in foreclosure filings, thereby slowing the process.
"We believe the drop is due to increased legal pressure on the banks by the state and federal governments," said PropertyShark founder Matthew Haines. "As we enter a new recession, we expect homeowners to continue to have trouble making payments on mortgages that continue to far exceed the value of the underlying houses."-- Adam Fusfeld
Monday, September 19, 2011
Wealthy communities in NYC, Florida area could fall under Obama tax planSeptember 19, 2011 04:00PM
Above Sutton Place and Oyster Bay, N.Y., below Fort Lauderdale and Bay Harbor Island, Fla.
The data indicates that the New York City area and South Florida were among the top spots for the rich.
According to the analysis conducted by Forbes, four out of the five wealthiest communities in the country were in New York City area or in South Florida based on estimated net worth.
Many residents in the New York City area also aren't very charitable. Particularly in some rich New Jersey towns, residents give away 2 percent or less of their income, compared to an average of 2.9 percent. The same is true for Tribeca and a part of White Plains.
While in Tribeca, only 17 percent of income comes from investments, reflecting the younger demographic of the neighborhood, according to the analysis, on Fisher Island that number is 85 percent, and in Boca Raton and Key Largo, places where residents have already accumulated their wealth, it's 75 percent or more of income. [Forbes]
Thursday, September 1, 2011
Mortgage rates reach historic lowsSeptember 01, 2011 02:30PM
Mortgage rates are declining further amid continued weak economic and housing data, according to Freddie Mac's Primary Mortgage Market Survey, released today. While the 30-year fixed rate held steady, the five-year adjustable rate mortgage set a new all-time record low having fallen for the eighth consecutive week and now standing at 2.96 percent.
For the second week in a row, the 30-year fixed-rate mortgages averaged 4.22 percent for the week ending today. Last year at this time, the 30-year FRM averaged 4.32 percent.
Fifteen-year fixed-rate mortgages this week averaged 3.39 percent, down from last week when it averaged 3.44 percent. A year ago at this time, the 15-year FRM averaged 3.83 percent.
"Weaker economic data reports eased upward pressure on mortgage rates this week and kept them at or near all-time record lows," said Frank Nothaft, vice president and chief economist for Freddie Mac. "The economy grew at a slower rate of 1 percent in the second quarter than was originally reported due to a smaller increase in inventories and fewer exports. In addition, consumer confidence in August fell to the lowest reading since April 2009, according to the Conference Board." -- Katherine Clarke