Comments on: Tax Solutions Group Offers The Best Way To Save Real Estate Tax

By: Business Tax Guru

Business Tax Guru — Mon, 23 Nov 2009 03:52:41 +0000

I’ve been involved in taxations for lengthier then I care to admit, both on the private side (all my employed life!!) and from a legal viewpoint since satisfying the bar and following tax law. I’ve offered a lot of advice and righted a lot of wrongs, and I must say that what you’ve posted makes utter sense. Please persist in the good work – the more individuals know the better they’ll be outfitted to comprehend with the tax man, and that’s what it’s all about.

By: Realestatequestion

Realestatequestion — Fri, 11 Jul 2008 06:27:04 +0000

I don't know what you mean by savings. The mortgage interest and property taxes are deducted on schedule A as you already know. That helps to reduce the amount of tax you owe at the end of the year. (if you would have owed any). I guess what you are asking is how much each paycheck will you save in federal income tax??

To figure that out you have to know how much interest per year your mortgage will be and how much property tax your house will be charged.

After you know those answers you can divide the total by the number of paychecks you receive a year and then have your employer reduce your federal witholding by that amount.

By: Horacio M

Horacio M — Fri, 11 Jul 2008 00:54:14 +0000

That depends. If it was your principal residence, and if you lived in it for 2 out of the last 5 years immediately prior to the sale, then you may exclude up to $250,000 ($500,000 if married filing jointly) in gain from federal taxes. Excess gains are taxed as capital gains, as is the entire gain if you don't meet the ownership, residency and/or occupancy conditions.

CA law may vary on that. Consult a tax advisor in CA for full details.

By: Julie

Julie — Thu, 10 Jul 2008 18:13:04 +0000

Approximately 140,000 * .3 * 1.5 * 5/100

By: David Z

David Z — Thu, 10 Jul 2008 10:19:16 +0000

Check with your local real estate tax assessor to see if you can protest the assessed value. If so show up with all of your reasons. Some protestors win and some lose. Good luck.

By: jennifer g

jennifer g — Wed, 09 Jul 2008 17:17:29 +0000

Not on your federal taxes, but some states have a rebate for part of your real estate tax. If you are in PA a widow can qualify, but there are income limits.

By: rotkark

rotkark — Wed, 09 Jul 2008 17:01:24 +0000

By: dachef

dachef — Wed, 09 Jul 2008 12:08:24 +0000

You can deduct the real estate taxes that you paid in 2007, even if they are for previous years, if they are for your main or second home. You are correct that you can't deduct penalties or interest

By: Sylwia K

Sylwia K — Wed, 09 Jul 2008 04:08:00 +0000

By: kurt_belisle

kurt_belisle — Tue, 08 Jul 2008 00:07:17 +0000

It all depends upon everything else. Real estate taxes are itemized deductions and are included with all the other itemized deductions. If the total of itemized deductions are less than the standard deduction, the standard deduction will be used and you basically get no benefit from the real estate tax deduction. Assuming you are itemizing your deductions, the actual benefit depends upon your tax bracket which depends upon your taxable income