Archive for the ‘tax issues’ category

Relocating to Texas? Here are some things you need to know about Property Taxes!

February 20, 2014

Property Taxes
Because Texas does not have a state income tax, it makes us a popular place for relocations. When you dig a little deeper, you realize our property taxes may be higher than some states, but when all is considered, the various trade-offs for calling Texas your new home are worth it.

However, if you are a transplant from another state, your former state may still expect you pay their property tax. It pays to plan ahead and make sure you have cut the proper ties. Just because you many no longer consider yourself a resident of your previous state, there may be some other factors that cause them to think otherwise.

Here are a few points to review. If any of these apply to you, it will be wise to be proactive and get it handled and changed over, instead of procrastinating and receiving a penalty letter from the IRS:

  • The amount of time you spend in your previous and current state
  • Where your spouse and children live, and where your children go to school
  • The state where your driver’s license is issued
  • The state where your vehicles are registered
  • Where your professional licenses are maintained
  • Your location of employment
  • Where you file your tax returns
  • The address of any professional listing (online, social media, yellow pages, etc.)
  • The location of any property tax exemptions you claim

If you are planning on making a move from one state to another, be sure to get professional advice from a tax specialist on what your particular tax caveats might be. It is not wise to assume the tax laws will be logical.

Please visit our Buyers Resource Page regarding Property Taxes for more information you may find useful.

For any of your relocation needs, whether you’re selling your home in Flower Mound, looking for a family home in Colleyville, or you simply want to explore your options, Sandy Luedke and Ideal Real Estate Group have the expertise and long-standing record of Texas hospitality and service to help you get where you need to go.

After all, there’s no place like home, and we’d love to help you find yours!

Can your home save you money on your Taxes?

February 6, 2014

Tax time - your home - deductibles1
It’s tax time, and homes all across the Dallas / Fort Worth area are being overtaken by receipts, spreadsheets, last years tax return, and the furrowed brows of home owners everywhere.

To deduct, or not to deduct, that is the question. For help on these issues, you can educate yourself by visiting the publications page on the IRS website, and looking up these specific forms:

  • 521 “Moving Expenses”
  • 523 “Selling Your Home”
  • 527 “Residential Rental Property”
  • 534 “Depreciation”
  • 541 “Tax Information on Partnerships”
  • 551 “Basis of Assets”
  • 555 “Federal Tax Information on Community Property”
  • 561 “Determining the Value of Donated Property”
  • 590 “Individual Retirement Arrangements”
  • 908 “Bankruptcy and Other Debt Cancellation”
  • 936 “Home Mortgage Interest Deduction”

Something else to consider is a Mortgage Credit Certificate. For rules on how that might apply to you, and tips on how to use your home to save on taxes, visit our Ideal Real Estate Group Resource Page for Home Buyers and take a look at the article Buying Your Home – Tax Considerations

A knowledgeable real estate agent can help first time home buyers recognize the tax benefits of home ownership, and when the best time might be to make that first home purchase. If you have questions or want to explore your options in buying or selling your home, we are here to help. Please contact Sandy Luedke and Ideal Real Estate Group at any time and let us help you find your way home.

Want a $7500 Tax Credit for Buying A Home?

November 7, 2008
If you’re considering taking advantage of this incredible buyers market to purchase for your first home, here’s some more good news that will help lesson the financial sting.  The $7,500 home ownership tax credit, which the federal government created earlier this year as part of the Housing and Economic Recovery Act (H.R. 3221) is a tool created by our government to encourage buyers, who may be sitting on the fence, to jump off and get into the real estate market.   

When you combine the tax credit with today’s low interest rates, wide selection of for-sale inventory, and affordable home prices, many of the pieces are in place for you to buy now.  But I understand that our tax codes and system of tax credits can be confusing. So, to help you understand how the credit works and why it would help you…you must learn the details.  


1. Buyers have until July 2009 to make a purchase that qualifies. 

The tax credit was passed in July of this year (2008) as part of the Housing and Economic Recovery Act (H.R. 3221). It’s worth up to $7,500 and can be taken in a single tax year. Authorization for the credit ends July 1, 2009, so if you wait to buy in the first half of 2009 they can take the credit on your 2009 tax return. Taxpayers can take the credit on their 2008 tax return if you bought your house this year after April 9. 

2. Buyers don’t really have to be “first-timers.”

The tax credit is actually available to any individual or household that hasn’t owned a home for at least three years. And the NATIONAL ASSOCIATION OF REALTORS® (NAR) has asked Congress to expand the credit to all buyers, not just those who haven’t owned a primary residence in recent years. 

3. Even if buyers exceed the income limit, they can benefit from the credit. 

The actual credit amount is set as a percentage of the home purchase amount. That percentage amount is 10 percent, so you can get 10 percent of the home price credited against you tax liability, up to a maximum $7,500.  Sounds like a great deal.  But what if you make more money than the income limit of $75,000 for individuals and $150,000 for households?  Good news: Individuals whose income exceeds the $75,000 limit but don’t make more than $95,000 can still take the credit but on a reduced basis. The same thing applies to households earning up to $170,000.  By the way, any house is eligible as long as it’s a primary residence and is in the United States. 

4. Think of it as an interest-free loan.  

The federal government requires the tax credit to be paid back in small, 6.67-percent increments over 15 years, although repayment will be no more than $500 yearly and payments will not start until 2011. For that reason, some analysts have likened the credit to a 15-year, interest-free loan to help make home buying affordable.  NAR is pushing congress to remove the repayment provision, making this tax credit a true tax credit rather than an interest-free loan.  

5.  You don’t have to be authorized before making a home purchase. 

There is no pre-purchase authorization, application, or other approval process. Eligible buyers simply have to claim the credit on their IRS Form 1040 tax return and/or any form that the IRS might devise.  Check with your tax professional at Tax time to make sure all the i’s and dotted and t’s crossed. 

6. New-home construction qualifies. 

For a home that a you construct, (or contract for), the purchase date is the first date the buyer occupies the home.  However, any home that is not a primary residence, such as a vacation home or income property, does not qualify.    

NAR Asking Congress to Expand Credit   

As mentioned above, NAR has asked Congress to do away with the repayment provision of the first-time buyer tax credit and expand the credit to all home buyers, not just first-timers. The proposals were part of a four-point housing stimulus plan the association submitted in mid-October.  “Housing has always lifted the economy out of downturns, and it is imperative to get the housing market moving forward as quickly as possible,” said NAR President Richard F. Gaylord.It is vital to the economy that Congress take specific actions to boost the confidence of potential homebuyers in the housing market and make it easier for qualified buyers to get safe and affordable mortgage loans.”

For more information about this, Here are some resources to check with:  

Sandy Luedke-

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