June 2007
Monthly Archive
30 Jun 2007 02:03 am
The Considerations of Using inheritance to pay off mortgage
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A good rule of thumb is that you should prepay the mortgage if you expect to earn less after-tax on your investments then the effective interest rate on your mortgage. So where do you plan to invest the proceeds from the sale of the inherited property? If you can use the mortgage interest deduction on your federal income taxes, again assuming you’re in the 25 percent marginal federal income tax bracket, you’re effectively paying 4.5 percent on your mortgage. I’m ignoring state and/or local income taxes in this example. |
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search for : mortgage interest deduction
29 Jun 2007 07:23 am
The Secret of Getting the Price Right On Home Value Sites
| It’s fairly easy to research the potential resale value or sales history of their home — or their neighbor’s — by plugging in the address on Internet sites like Cyberhomes.com, RealEstateABC.com and Zillow.com. However, while all three allow house hunters to price or compare properties they may be interested in, and potential sellers to get guidance in setting an asking price, the sites aren’t always 100% accurate. All these sites utilize at least some public information, so in regions where housing data is not complete or up to date, these sites’ calculations may fall short. |
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28 Jun 2007 06:16 am
Here’s a Quick Way to gift real estate, save on taxes
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Inman News discusses gifting a home. Gifting a house to a child requires filing of a federal gift tax return. However, no gift tax will be due if the total lifetime gifts exceeding the annual $12,000 per gift per donee exemption are not more than $1 million. When you die, the value of your gift will be subtracted from your federal estate tax exemption, which is currently $2 million if you die in 2006. As a donee, your child will take over the adjusted cost basis for the house. If the child lives in the home as a principal residence at least 24 of the 60 months before its sale, Internal Revenue Code 121 allows the new owner to exclude up to $500,000 capital gains (up to $250,000 for a single homeowner) from tax upon sale. |
search for : Gifting a house, federal gift tax return, federal estate tax exemption, Internal Revenue Code 121
27 Jun 2007 07:19 am
Enjoying Your Outdoor Fireplace
| Even in the summer months, when evening temperatures never fall below 60 degrees in the mountain town of North Carolina and Georgia, outdoor fireplaces definitely gets used. While luxury amenities for backyards and patios may include built-in barbecues and plush sofas surrounding a weatherproof plasma television, it is the outdoor fireplace or fire pit that is increasingly becoming a backyard staple. |
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search for : built-in barbecues, weatherproof plasma television, outdoor fireplace
26 Jun 2007 06:50 am
The Secret of Successful Real Estate Investing
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The latest book from longtime real estate author Tyler G. Hicks, “How to Acquire $1 Million in Income Real Estate in One Year Using Borrowed Money in Your Free Time,” is really about how and where to obtain mortgage money to acquire investment property. Despite its long title, this is a resource guide — rather than a real estate “how to” book — explaining dozens of ways to finance property acquisitions and where to locate the necessary funds. |
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search for : $1-million in Income Real Estate, obtain mortgage money, investment property
25 Jun 2007 07:22 am
Understanding bankruptcy laws
| Bankruptcy laws are complicated. Thanks to new reforms that went into effect Oct. 17, 2005, the changes in the laws make it harder to qualify for bankruptcy and even exclude some people from filing Chapter 7. The laws require that a person filing for bankruptcy must get credit counseling from a government-approved credit counseling agency. The debtor must go to counseling within 180 days before filing for bankruptcy. There are some exceptions, such as the lack of qualified agencies to provide counseling and certain emergencies. |
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search for : Bankruptcy laws, Chapter 7, credit counseling
24 Jun 2007 06:46 am
A Quick Way to “rightsize” your lifestyle
| To help baby boomers re-evaluate where and how they live and help make it easier for them to find a home that fits the next chapter of their lives is the purpose of the book “Rightsizing Your Life: Simplifying Your Surroundings While Keeping What Matters Most,” by Ciji Ware. The use of the term rightsizing instead of downsizing is a good way to market the book, but, more important, it explains the next viable real estate option for boomers who have become empty nesters, are looking to retire, or, as the book suggests, are just finding their “old life just doesn’t fit anymore.” Ware recounts her personal story of rightsizing and cites examples of other people in similar situations. She tells readers of the many emotions they may experience when going through such a process. |
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search for : rightsizing, downsizing, empty nester
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