Tag: mortgage
SR Client Question: Do I need to pay tax on the sale of an asset paid out over many years in the year it’s sold or as I collect the installments?
Installment payments received for assets, such as proceeds from a stock sale spread out over several years or a seller-financed mortgage, allow the seller to defer recognizing the income tax liability over the period the payments are received. Under IRS...
Tax Reform Planning Series: Maximize home mortgage interest deductions
Before the Tax Cuts and Jobs Act (TCJA), taxpayers could deduct interest paid on up to $1 million ($500,000 if married filing separately) of home acquisition debt (debt used to buy or substantially improve a first or second home). Also,...
Should you revisit your decision to capitalize carrying costs?
With the Tax Cuts and Jobs Act taking effect in 2018, it may make sense to revisit your decision to capitalize real estate taxes, mortgage interest and other carrying costs related to investment property. For background, a taxpayer can capitalize...
Guest Author Harry Glanz: How to avoid the most common mortgage mistakes
The most common mistake people make is NOT having a complete plan in place before shopping for a new home. A thorough plan is needed for goals and objectives. Having an effective plan in place entails sitting down with clients...