To prepay or not to prepay state and local taxes? That’s been the burning question over the past week. The Internal Revenue Service (IRS) now has an answer as to whether it might accept prepayment as a tax strategy – and not surprisingly, it’s maybe.
There is some good news to be found in the real estate market these days. While home prices aren’t generally on the rise, neither are real estate taxes. In 2013, the median U.S. real estate tax bill was $2,132. That’s according to a Zillow analysis that used the most recent data available. That number is…
Nobody likes a tax hike. It especially hurts when you’re already tops for taxes in the nation. New Jersey, which holds the distinction of having the highest tax burden in the nation for three years running, has been pushing back at a budget with increases that Governor Christie (R) insists are necessary. This week, the…
Traditionally, taxpayers who owned homes could only deduct state and local real estate taxes if they opted to itemize their deductions. However, for the tax years 2008 and 2009, taxpayers who opt for the standard deduction are getting a break: there is an additional standard deduction for those who pay state or local real estate…
And why does it matter on a tax blog? Consider this. You buy a house in the midst of a housing boom. Prices go up, up, up. Subprime mortgage mess hits. Other credit woes ensue. Housing market drops. As in plummets. And suddenly, your house isn’t worth as much as you thought. Sound familiar? It…
Taxpayer asks: I stumbled here by mistake but am glad I did. I’m a first time home owner about to file his first 1040. I know I can legally claim my interest paid on my return but while reading about that, I also read that “real estate taxes” charged by the county can be deducted….
