Plenty of Online Help for 2006 Real Estate Tax Info

It's that time of year again and I can tell people are starting to do their taxes by the level of emails I receive with tax questions regarding real estate. There are so many ways to skin this tax cat, that I felt it best to let the professionals handle your calls. Thus, I've sifted through several search engine pages to point out some pages and sites worth your click to get you headed in the right direction for answering those questions on investment, vacation or personal properties.

Below are resources divided by topic and real estate type. You'll find links that I have found beneficial, rather than just the links that wound up at the top of the search engine page. Let's begin.

The best site for all your real estate tax questions is IRS.gov – the official web site of the Internal Revenue Service. In particular this year, I found a page that was very beneficial: Frequently Asked Questions regarding deductions for your house.

There are questions on topics like, flooding, deductions for second mortgages, home equity loans, etc. If you need deeper reading for your particular issue, you may want to check out the online publications listed below:

~ First-time homeowners (IRS Publication 530)
~ Selling your house (IRS Publication 523)
~ Business use of your home (Publication 587)
~ Moving expenses (Publication 521)
~ Home mortgage interest deductions (Publication 936)
~ Giving away real estate (Form 8283)

Nolo.com is a great legal website that I visit quite frequently. Its Top 10 Tax Deductions article should fill you in on the best ways to garner tax benefits from your home, including:

~ Mortgage Interest
~ Points
~ Equity loan interest
~ Home improvement loan interest
~ Property taxes
~ Home office deduction
~ Selling costs and capital improvements
~ Capital gains exclusion
~ Moving costs
~ Mortgage tax credit

If you own a vacation home, then click on over to SmartMoney's guide on how to report taxes on the beach house. The web page talks about the various ways you use the house, i.e., Use a lot, rent a lot; use a lot, rent a little; use a little, rent a lot, etc., etc.

For investors with rental properties, visit Jackson Hewitt Tax Service's piece on tax concerns for rental properties.

The site includes answers to various questions, including:

~ What is and is not considered rental income?

~ What expenses can be deducted?

~ What to look out for as an investor?

Some folks want to donate real estate rather than sell it. There are varying tax benefits and responsibilities when real estate is given to non-profits and/or individuals. Begin with the IRS information here.

For donations of real estate, one of the best explanations of real estate gifts I've seen published is at the Lincoln Center for the Performing Arts' guide to estate gifts, found here.

The site answers questions, such as:

~ What typical donors of real estate have in common?
~ Ways to make a gift of real estate
~ Tax Rules for Gifts of Real Estate
~ Using a qualified appraisal to valuate the property, and more.

If you're facing losses and financial struggles do to the hurricanes of 2005 – the IRS has some help for you. "The Internal Revenue Service is working to provide appropriate relief and assistance to victims of Hurricanes Katrina, Rita and Wilma. If you are a hurricane victim and need help with tax matters, please call 1-866-562-5227," according to the IRS's announcement of its new publication specially for hurricane victims.
Publication 4492 explains the tax law changes and relief provisions available to individual and business victims of Hurricanes Katrina, Rita and Wilma. It's located at the following web page: http://www.irs.gov/pub/irs-pdf/p4492.pdf
KFindLaw.com's guide to Estate and Gift Taxes, answers questions such as:

~ Will my estate have to pay taxes after I die?
~ What are the rates for federal estate taxes?
~ Are there ways to avoid federal estate taxes?
~ Can't I just give all my property away before I die and avoid estate taxes?
~ Do some states impose death taxes?
~ Can I avoid paying state death taxes
~ It's a valuable resource for those facing estate and gift issues for 2005.

International Real Estate Directory's Guide to Property Taxes provides a state-by-state, linked map providing the clicker access to as many real estate property tax sites that have been documented by this august web site. For instance, click the state of Texas and you'll have links to scores of county appraisal district web sites and their databases. Some states have plenty of information, while others have none. In addition, the directory includes links to sites around the globe.

Another source of online Public Records is at netronline.com, the site for Nationwide Environmental Title Research, LLC, which creates databases for sale to consumers. In addition, it has a very complete (and free) directory set up of public records located on the web.

The internet is loaded with "knowledge" about real estate investments and taxes -- hopefully you'll use the above sites to sift through the hype and come up with the nuggets of wisdom.

Article by Anthony Carr for realtytimes.com.

Holding Out for a Higher Price

It's not unusual for sellers to have an over-inflated opinion of the value of their home. Often this comes from pride of ownership, which is not a bad thing. Homeowners who take pride in their homes usually keep them well-maintained. This preserves the value of the property. Sometimes, however, pride of ownership can get in the way of making a rational business decision.

Recently homeowners put their Oakland Hills, Calif., property on the market with expectations of a high selling price. To encourage competition, they listed it for $759,000, which was a price that was lower than they were willing to accept. They received an offer soon after they listed for $785,000. The sellers rejected the offer because they wanted more than $800,000. Subsequently, the property languished on the market. Finally, it sold, after the price was reduced to $739,000.

Another seller countered an excellent offer that he received soon after listing. He was also hoping for a higher price. Months later he ended up selling for $50,000 less than he would have if he'd accepted the first offer.

It has often been said that the first offer is likely to be the best one you'll receive. While this saying doesn't hold every time, it does contain a kernel of truth.

Your best chance of selling your home for the highest price is when it's new on the market. If a property is priced right for the market, and the market is active, you might receive an offer, or offers, within the first several weeks of marketing. Buyers tend to make aggressive bids for high-demand listings in order to beat the competition.

After your home has been on the market for a period of time with no offers, you are less likely to receive aggressive bids, unless the market changes in your favor over time. However, if the market is steady or slows, you could find the appeal of your home diminishing over time. This usually equates to fewer offers at lower prices. Buyers typically ask how long a listing has been on the market and discount their offer prices accordingly.

Home seller tip: You're taking a gamble when you turn down a strong offer from a well-qualified buyer. If you wait, you might not see as good an offer later. If word gets out that you rejected a good offer, this could discourage other buyers from making offers. They may wonder if you're serious about selling.

Just as it's risky to turn down a good offer in hopes of something better, it's also risky to accept an offer before your home has been exposed to the market. If your home is priced at or under its market value and it hasn't been adequately marketed, you could shortchange yourself.

Before you sign a listing agreement, make sure that your real estate agent will provide you with an aggressive marketing program. You want as much exposure for your home as possible, as quickly as possible. If your home is priced right for the market, and it receives comprehensive marketing, you should feel confident that the offers you receive reflect the current market value of your home.

If after professional marketing exposure, you receive an offer or offers that are less than you had hoped for, you may need a reality check. Your pride of ownership could be clouding your judgment of current market conditions.

The closing: Your home is only worth what a willing and able buyer will pay for it in the current market.

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers," and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

Article from realestate.msn.com.