Q. I purchased vacant land 2 years ago and plan to sell it within the next few months. I haven't used it for any purpose the last 2 years, so I'm assuming it's considered investment property. Originally I had planned to build on the land, but now that I'm moving to a different city I need to sell the land.
I have 2 questions:
1. Are real estate taxes deductible on investment property? If so, are they reported in the same place as the real estate taxes I report for my primary residence?
2. I'll probably break even on the property or even sell at a loss. Would this be considered a capital loss (if I consider it to be investment property)?
Thank you!
I have 2 questions:
1. Are real estate taxes deductible on investment property? If so, are they reported in the same place as the real estate taxes I report for my primary residence?
2. I'll probably break even on the property or even sell at a loss. Would this be considered a capital loss (if I consider it to be investment property)?
Thank you!
A. 1. Real property taxes are always reported on Schedule A, in the same section that you report your property taxes on your principal residence. The only time that it would not be reported on Schedule A is if the property was held as rental property. In that situation, it would be reported on Schedule E along with your rental income and expenses.
2. If the property was held as an investment, a loss on the sale would be considered a capital loss. Whether it is short term or long term would be dependent on the holding period. Capital losses can only be used to offset capital gains, plus an extra $3,000 of loss per year (you can only deduct a net capital loss of $3,000 per year). Any excess loss would be carried over to future years until it is used up.
2. If the property was held as an investment, a loss on the sale would be considered a capital loss. Whether it is short term or long term would be dependent on the holding period. Capital losses can only be used to offset capital gains, plus an extra $3,000 of loss per year (you can only deduct a net capital loss of $3,000 per year). Any excess loss would be carried over to future years until it is used up.
What is the average pay for where you live?
Q. I've been asking questions about real estate and I've read questions about daycare charges and I see peoples answers vary gretly so it made me wonder.... What is the average pay where you live? Like how much an hour?
If you don't mind, please say where your from.
The average pay around here (in Oklahoma) is around $8.00 an hour. The min. wage is $6.55.
If you don't mind, please say where your from.
The average pay around here (in Oklahoma) is around $8.00 an hour. The min. wage is $6.55.
A. I'm from rural Quebec and the minimum wage is $8.50/hr but the average hourly wage is $20.38
Do you have to come up with the difference between appraised value and offered value?
Q. I have question about real estate in the Phoenix, AZ area. What happens if you make an offer on a house and then the appraisal comes in short. We still plan to put down 25% but does the difference have to be paid out in cash?
A. What happens depends on how the contract is written.
The standard contract in Texas for a conventional mortgage does not directly address what happens when the appraisal comes in short. The motgage company may require a certain percentage down (say 10% down) and as long as that still mathamatically works out then nothing would change.
You can (and people often do) write in a phrase that says if the property does not appraise for at least the sale price then the buyer can void the contract- but that would have to be something added.
What often happens is that the buyer does threaten to enforce that provision unless the seller lowers the price to the appriased value. If the seller refuses to do so then you can walk away.
In that case the seller is saying that the house is worth more in their eyes than it is to the appriaser. Sometimes the house is also worth more to the buyer in such a case and the buyer chooses to go forward. (Say for instance the appraiser decides that an underground home is not worth much because most people don't like them- but that may be exatly what you have been looking for).
If you decide to go forward and the mortgage company is requireing 25% down on a $200,000 sale and then it only appriases for $190,000 then the mortgage company would likely not make a mortgage for more than 75% of $190,000 or $142,500. So instead of a $50,000 downpayment you would now have a $57500 downpayment if you agreed to do so.
The standard contract in Texas for a conventional mortgage does not directly address what happens when the appraisal comes in short. The motgage company may require a certain percentage down (say 10% down) and as long as that still mathamatically works out then nothing would change.
You can (and people often do) write in a phrase that says if the property does not appraise for at least the sale price then the buyer can void the contract- but that would have to be something added.
What often happens is that the buyer does threaten to enforce that provision unless the seller lowers the price to the appriased value. If the seller refuses to do so then you can walk away.
In that case the seller is saying that the house is worth more in their eyes than it is to the appriaser. Sometimes the house is also worth more to the buyer in such a case and the buyer chooses to go forward. (Say for instance the appraiser decides that an underground home is not worth much because most people don't like them- but that may be exatly what you have been looking for).
If you decide to go forward and the mortgage company is requireing 25% down on a $200,000 sale and then it only appriases for $190,000 then the mortgage company would likely not make a mortgage for more than 75% of $190,000 or $142,500. So instead of a $50,000 downpayment you would now have a $57500 downpayment if you agreed to do so.
Can you gain your real estate license from the internet and sell real estate in Tenn?
Q. I called a real estate company and i didnt ask that question but looked at gaining my real estate license from internet. I know real estate, i have 7 homes that i rent out, but unsure about the truth about online colleges. Please help. Thank you.
A. http://www.successrealestateschool.com/courses/online_courses.php
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