Posted by Collette | Posted in Weekly Tips | Posted on 28-05-2010
This week Collette shows you how to step up your hamburgers and impress your friends and family this summer season. Got your own special recipe? Let us know.
The First Time Home Buyer and Long-time Resident Tax Credits have been extended for Military Personnel and certain Federal Employees. Here are the basics:
You must have been on active duty outside of the US for 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.
The home needs to be under contract by April 30, 2011
Posted by Collette | Posted in Weekly Tips | Posted on 16-04-2010
In this week’s Weekly Tip, I have had a little fun. Have you ever wondered what causes Brain Freeze when you eat or drink something that’s too cold? Click on the link to see what I found out, this will amaze you!!!
Posted by Collette | Posted in Tax Credits | Posted on 19-03-2010
Sources and Publications
As always with taxes, nothing is ever simple or easy. Speak with a qualified tax professional for specific advice — an enrolled agent, a CPA or an attorney who specializes in tax issues.
Also, the IRS itself has excellent information at its website, www.irs.gov, by phone at 1-800-829-1040 and with specialized publications such as those below:
Publication 523, Selling Your Home
Publication 527, Residential Rental Property
Publication 530, Tax Information for First-Time Homeowners
Posted by Collette | Posted in Tax Credits | Posted on 18-03-2010
A 1031 exchange may allow investors to defer all capital gains taxes.
With a 1031 transaction, investment property is exchanged for “like” real estate. The basic requirements are that within 45 days after the “relinquished” property has been sold, a “replacement” property must be identified. The identified replacement property must then be acquired within 180 days after the sale of the relinquished property.
What’s important about a 1031 exchange is that the capital gains tax on the relinquished property is deferred — but it does not disappear. What really happens is that the basis for the new property (the “replacement property”) is reduced by the adjusted value of the “relinquished property” (the old property).
A 1031 exchange is complex and requires the services of a “qualified intermediary.” Among other tasks, a qualified intermediary holds the money from the sale of the relinquished property and applies it to the purchase of the replacement real estate. This must be done because under the rules for 1031 exchanges, the seller of a relinquished property cannot touch money from the sale — it must be held by the qualified intermediary.
Accounting for a 1031 exchange is also complex. Essentially there is a need to figure out the sale value of the relinquished property, add back depreciation and account for financing. I would like to offer you a free guide that talks in more detail about 1031 exchanges that’s well worth reviewing before meeting with a tax pro. Email me at collette.mckee@academy.cc and I’ll send it to you a copy immediately.