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7 Rookie Real Estate Tax Mistakes

 

Millions of people buy real estate each and every year but many rookies are making simple yet costly mistakes. Real estate tax can be quite complicated to understand but if owners don’t know a few basic errors to avoid, they could foot a costly bill. The following are just seven basic rookie mistakes to avoid today.

Trying To Get the Escrow Balance Deducted In Full

One of the simplest rookie real estate tax mistakes owners can make is to try and get a full balance deduction. This is simply not going to happen. You cannot write off your entire escrow balance and you aren’t going to be able to get a break on the taxes either. Everything has to match the original bill and if not then you may find yourself up for an audit. This is never something you want so it is much better to get things right and stay on the good side of the government.

Forgetting PMI Should Be Deducted

Private mortgage insurance payments or PMI, are something few enjoy but some of these payments can be written off or deducted with your tax returns. Some of your real estate taxes may be reduced slightly as long as you claim for them. Unfortunately, some people seem to forget these payments can be written off on a tax return and end up missing out. You can get a vast majority of the payments written off or if you’re lucky enough the entire amount.

Energy Efficient Upgrades Forgotten

Rookies don’t always know the latest additions to the tax laws and that can often cause them a few troubles. However, some rookies don’t realize they can claim for certain things too. For those who are looking to upgrade to green energy or add energy efficient measures into the property, they can make some deductions. This is often missed however when it comes to real estate tax.

No Record of Your Expenses

If you are listing a host of deductions you might find the government wants to see records of legitimate expenses. However, rookies often don’t keep a track of what money is going into the property and out; and this isn’t a good idea. Real estate needs to have a solid paper trail in order to ensure everything is above board and legit. See more here: http://talkingbackwards.realestatetheband.com

Deductions with Home Offices

There are thousands of people who think since they work for home, they are able to have some real estate tax reductions but unfortunately, they are sorely mistaken. When it comes to claiming certain deductions there are strict rules and guidelines that must be followed. For instance, the property must be used as an office or used solely for business; if this isn’t the case your deductions won’t count. This is sometimes complicated but the fact is real estate tax can only be used as a true deduction if it is used for business purposes only.

Home Improvements Are Not Legitimate Deductions

There are differences between home repairs and home improvements when it comes to deductions. Now, most people don’t see many differences between them but this often causes several errors. Real estate tax rules are quite strict and essentially it comes down to what is concerned necessary and what is considered cosmetic. Home improvements are technically cosmetic and not in fact legit deductions and even though they do add value to the property they aren’t deductible. Home repairs, on the other hand, are legitimate deductions.

Claiming For the Wrong Year

If you were to buy property in 2016 the real estate must be added to that year’s tax returns and not the previous year’s. This is something thousands of property owners seem to forget but they could land in some serious trouble if they don’t get it right. You may think it doesn’t matter but it can and unfortunately this is something rookies end up making a mistake with.

Don’t Make Real Estate Tax Mistakes

Real estate taxes are quite difficult to understand because it’s a vast area. However, if you make a mistake or two then it can end up costing you thousands. You could miss out on claiming for certain deductions or end up paying out more than you should. Real estate tax law is complicated but don’t sit back; brush up and avoid the rookie mistakes.

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Wholesaling – Three Ways To Spot A Fake Buyer

So you are selling property—maybe you have a house to sell, or maybe it is a home you have purchased with the intention of “flipping” (buying for a low price, then fixing it up and selling it for a higher price)—and you are contacted by a potential buyer who seems interested in purchasing your property. Great, right? Not so fast. Not everyone is actually interested in purchasing your property. Some people try to make it look like they are interested in buying your property when, in fact, they only want to pass the property off as their own—and sell it to someone else in the meantime—wasting your time and money. With these three tips, you will be able to spot a fake buyer and keep someone from wasting your time (and your money).
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Top Real Estate and Housing Trends, Predictions and Outlooks for 2014

Purchasing a home is a big decision, one that require much thought and planning—even before you actually go out and look at a home. Researching the top real estate and housing trends, before you hit the pavement looking, will put you in the best position possible to succeed in the house buying market. Continue reading

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Top 5 Cities To Invest In For 2014

2014 is all about the year of recovery for economic growth. Housing prices and availability of jobs are finally making it possible for people to purchase a home—individuals who, up until this point, were unable to afford such a purchase. With any recovery trend, there are certain areas that are projected to do better than others—for a variety of reasons. Here are the top 5 cities that are projected to be the best to invest in for 2014 and hopefully for many years to come. Continue reading

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Rights and Responsibilities of a Landlord

Though there are many rights afforded to a renter, as a landlord you are also afforded many rights and responsibilities—of which you should be intimately acquainted with before you decide to enter into situation where you are renting out property. Though the rights and responsibilities of a landlord will vary from state to state, and often from city to city, here are some of the more common rights and responsibilities of a landlord and information that will help you decide whether or not you it is a situation you would be interested in getting involved with. Continue reading

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Renters Insurance Quotes

Get Renters Insurance Quotes

If all insurance companies offered the same rates, selecting which one to go with would be easy. Insurance companies differ in how much they charge you to insure your possessions and provide liability coverage. Plus the coverage itself can differ from company to company. Obtaining a variety of renter’s insurance quotes before committing is always best.

You should shop around and get renters insurance quotes from different companies and compare both the coverage and cost. Researching renters insurance quotes could save you from a desperate situation. Don’t wait until disaster strikes before doing your homework and getting the protection you need. Continue reading

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Metal Building Packages Combine High Quality, Good Value, and Low Costs

More and more home owners are adding a shed, workshop, and oftentimes an extra garage or two to their residential property.

It makes a good investment and a great added value for your home.

With the convenience of metal building packages, the average home owner can put up one of these steel buildings without a lot of help or having an engineering degree. You can go out and purchase a metal building prefab kit for a small amount of cash. They are already designed and ready to be built with a little construction experience and everything you need is right in the package. They offer a well-structured building with low maintenance and are quite sturdy and durable. They will last a long time and are very functional for many purposes. You can purchase a US Steel, Mueller, Butler, or Amish building to meet your desired specifications at a low cost and at many local dealers. It is the perfect alternative to having a building designed and constructed by some outside company that is going to add up to a lot of expense. Continue reading

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Build Your Own Storage Shed with Storage Building Kits

To begin the process, you simply need to decide what your structure will be used for. Will you be storing small equipment like lawnmowers and other lawn equipment or will it be used for an RV or larger farm equipment? There are many reasons for finding ourselves in need of extra storage. Some of those reasons are small, like buckets and bins, and some are very large, like cars and boats. The solution very often ends up being the need to build another outdoor building alongside your home. That may seem like a task that is too large for most people. The availability of storage building kits has simplified the process. These storage buildings come in a variety of sizes and shapes and are usually built with wood, vinyl or surplus steel. Often they come in packages with detailed self-build construction plans. Continue reading