Comments on: Want Saving in Real Estate Tax? Take Help From Tax Solutions Group

By: dachef

dachef — Thu, 30 Aug 2007 02:00:16 +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: Realestatequestion

Realestatequestion — Wed, 29 Aug 2007 11:38:54 +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: Julie

Julie — Wed, 29 Aug 2007 06:29:05 +0000

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

By: Horacio M

Horacio M — Tue, 28 Aug 2007 07:12:11 +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: Sylwia K

Sylwia K — Mon, 27 Aug 2007 22:16:26 +0000

By: David Z

David Z — Mon, 27 Aug 2007 13:41:22 +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 — Mon, 27 Aug 2007 11:51:15 +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 — Mon, 27 Aug 2007 04:44:58 +0000

By: kurt_belisle

kurt_belisle — Mon, 27 Aug 2007 00:17:48 +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

By: andersonorganization

andersonorganization — Sun, 26 Aug 2007 23:54:10 +0000

Call the county (or State) tax department and ask if they auction tax liens…..some do and some don't. Some auction the property for complete ownership to pay the tax lien, some don't….depends on the county/state

Mike

====================