Real Estate Loan

Deductibility of Real-Estate Loan Refinancing Charges Deductibility of Real-Estate Loan Refinancing Charges By Steven V. Melnik E-mail Story Print Story With interest rates at all-time lows, many Americans are refinancing home loans. Because refinancing transactions usually cost thousands of dollars, it is important to know when refinancing expenditures are deductible. Loans Secured by a Principal Residence The IRC defines a principal residence as where the taxpayer spends the most time during any given taxable year. Consequently, principal residence status can change from year to year. As a general rule, taxpayers can deduct points paid for refinancing principal residence loans. IRC section 461(g) defines many fees as points, but only qualifying points are allowed as a deduction. Qualifying points are usually fees paid to the lender for a loan (see the Sidebar for a list of requirements). Loan application, processing, underwriting, and other fees are not deductible. Revenue Procedure 94-27 allows itemized deductions for qualifying points resulting from the purchase of a principal residence. Points paid for refinancing an existing mortgage, however, cannot be immediately deducted. According to IRC section 461(g), those points are deducted over the life of the new loan. To calculate the portion of those points deductible in any particular year, determine the deductible points for each loan payment and multiply by the number of payments made during that year (per payment amortization). For example, consider an individual who paid $1,800 refinancing qualifying points on a principal residence for a 30-year loan requiring 12 payments per year (a total of 360 payments). The $5 allowable deduction for every loan payment is calculated by dividing $1,800 by 360. Six loan payments during the year would result in a $30 itemized deduction, with unamortized points amounting to $1,770. Multiple Refinancing Activities Remaining refinancing points are generally deductible in the year when a second refinancing occurs with a different lender. In the example above, the remaining $1,770 first-loan points would be deductible that year. If the second refinancing is with the same lender, however, the remaining points and any new qualifying points paid would be deductible over the life of the new loan. Points paid during a refinancing transaction are immediately deductible to the extent the new loan is used to substantially improve a principal residence, assuming the requirements listed in the Sidebar are met. Substantial improvements, such as building an addition to a house, qualify. For example, a $60,000 loan from bank B to refinance bank A’s $40,000 loan and a $20,000 house addition would result in one-third of the newly paid qualifying points being deducted that year. Refinancing of Second or Vacation Homes Some Americans are investing in real estate as an alternative to stocks and bonds. Tax rules applicable to vacation and second homes differ from those for primary residences. Points paid for a purchase, substantial improvement, or refinancing of second and vacation homes are generally deductible over the life of the loan. The per-payment amortization method is applicable. Other refinancing-related expenditures increase the tax basis of the home. Rental Properties and Properties Used in a Trade or Business. When refinancing rental properties and properties used in a trade or business, all ordinary and necessary refinancing expenditures are deductible over the life of the loan. Refinance-related expenditures for rental properties are deductible on line 18, Form 1040, Schedule E; for properties used in a trade or business, expenditures are deducted on Form 1040, Schedule C. Other Deductibility Issues When sellers of real estate pay for points on the buyer’s behalf, they are not allowed to deduct those points, but can reduce sales proceeds. Buyers can deduct those points if the property basis is reduced by the same amount. All other refinancing-related expenditures, such as attorney, appraisal, bank, title, and other fees, are not deductible. They do, however, increase the tax basis of the home to the extent they are not deductible. Points are deductible when a cash-basis taxpayer itemizes deductions. Deductibility can be affected, however, when a taxpayer’s adjusted gross income reaches a certain threshold. (The 2003 threshold is $69,750 for married filing separately returns and $139,500 for all others.) The deductibility of refinancing-related expenditures depends upon the type of property securing the refinanced loan, as well as how the loan proceeds are used. The use of the property must be understood, because properties can be used for more than one tax purpose in any given year. It is important to be familiar with the tax consequences of refinancing transactions in order to derive the maximum benefit. Steven V. Melnik, LLM, JD, CPA , is Professor of Tax Law and Director of Graduate Tax Programs at Bernard M. Baruch College, City University of New York. May 2004 Issue Enlarge Cover Features Regulation of Professions by Interstate Compact 20 Questions onTrust, Medicaid, Insurance, and Asset Transfers Accounting for Stock Option Government Procurement Basics More This Issue | Past Issues Home | Contact | Subscribe | Advertise | Archives | NYSSCPA The CPA Journal is broadly recognized as an outstanding, technical-refereed publication aimed at public practitioners, management, educators, and other accounting professionals. It is edited by CPAs for CPAs. Our goal is to provide CPAs and other accounting professionals with the information and news to enable them to be successful accountants, managers, and executives in today's practice environments. ©2005 The CPA Journal. Legal Notices

Investment Property A Realty

Real Estate Investing - Facts and Advice About Real Estate Investing  You are here: About > Home & Garden > Home Buying / Selling > Investing & Foreclosures Home & Garden Home Buying / Selling Essentials 10 Things Home Buyers Shouldn't Do Best Tips for First Time Home Buyers "Must-Do" Tasks Before You Sell How to Buy a Home, Step by Step For Sale by Owner Advice Articles & Resources How To Buy a Home How To Sell a House Celebrity & Historic Credit Reports & Scores Design & Remodel Home Maintenance Inspections & Appraisals Investing & Foreclosures Modular & Manufactured Mold, Radon, Lead, etc. Mortgage Advice Moving & Relocation Real Estate Careers Real Estate For Sale Vacation Homes Buyer's Guide Before You Buy Top Picks Home Buying Books Foreclosure Books Mortgage Books Product Reviews Forums Help FREE Newsletter Sign Up Now for the Home Buying / Selling newsletter! See Online Courses   Search Home Buying / Selling > Investing & Foreclosures Real Estate Investing, Foreclosures & Taxes Tools to help you learn about real estate investing. What choices do you have? What's the "best" real estate investment for a beginner? You'll also find information about tax-deferred exchanges and other tax issues. Subtopics 1031 Exchange (6) Investing in Foreclosures @ Capital Gains (6) Investment Strategies (0) Commercial RE (5) Lease Option Ideas (5) Foreclosures (25) Marketing Your Rentals (5) Invest Analysis Software (2) Rental Property Tips (5) Articles & Resources Sort By : Guide Picks | Alphabetical | Recent How To Do a 1031 Tax Deferred Exchange Performing a 1031 tax deferred exchange allows you to defer Capital Gains taxes on real estate bought and sold for investment purposes. Learn how the process works and get the information you need to do a successful 1031 exchange. Acquiring Income Producing Property Here's a multi-page document that offers tips and techniques on just about every aspect of buying and managing rental properties. Buying Investment Property A Realty Times article that outlines a few ways to finance your investment acquisitions. How To Calculate Cash Flow from Rental Properties This document takes you step-by-step through a cash flow calculation. How To Set the Right Rent Tips to help you determine the right rent to charge for your investment properties. Investment Property / Rental Home Calculator This calculator provides an analysis of cash flow and net worth on investment property purchases. Take a look. Property Investment: Single Family Rental Homes Homestore.com explains why single family homes are a popular investment choice. This articles includes information about financing and taxes, and discusses probable scenarios about cash flow. Real Estate Investing HouseClicks offers a great deal of information about different methods you might use to begin investing in real estate. Real Estate Investment Strategies John T. Read's text is helpful for the beginning real estate investor. Short Term or Long Term This information from HouseClicks might help you decide if a short or long term real estate investment is best for your current needs. When Should You Sell Investment Property? Not just about selling, this Realty Times article also contains advice about choosing the right investment.        Topic Index | Email to a Friend Our Story | Be a Guide | Advertising Info | Work at About | Site Map | Icons | Help User Agreement | Ethics Policy | Patent Info. | Privacy Policy | Kids' Privacy Policy ©2005 About, Inc., A part of the New York Times Company . All rights reserved. Around About Oprah's Life Vacation Ideas Shop Safely Online VIDEO: Craft Rooms VIDEO: Christmas Traditions What's Hot Coping with Unethical People How To Buy Land Real Estate Appraisal Before You Buy a Log Home Package Home Buying / Selling - GuideReviews Headlines Getting Ready to Sell Your House Guests and lots of activities make it difficult to show... Before You Buy Gas Logs Gas logs are growing in popularity every year, so manufacturers... Pros and Cons of Becoming a Real Estate Agent You've decided you want to become a real estate agent,... Step-by-Step Directions Help You Measure Square Footage Each year, home owners discover that their new home's square...

Texas Land Added to

Texas, Land Added to Endangered Bird Haven (TX): The Trust for Public Land - Select State - Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Col... Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Home View by Region Central Chicago Michigan Minnesota Ohio Oklahoma St. Louis Texas Wisconsin Mid-Atlantic New England Northwest & Rockies Southeast West About TPL Support TPL City Parks Research Conservation Services Initiatives Federal Programs Local Programs Newsroom Publications Activities Jobs TPL Store HOME View by Region Central Texas Land Added to Endangered Bird Haven (TX) Contact: Benjamin Larkin, (512) 478-4644; Deborah Holle, (512) 339-9432 Hill Country Views Photo by: AUSTIN, Texas, 3/26/04: The Trust for Public Land (TPL) announced today it has preserved 96 acres of Hill Country terrain, completing the protection of the 457-acre McKeever property. Located about 30 miles northwest of Austin, the property will be included in the Balcones Canyonlands National Wildlife Refuge. TPL transferred the property from the McKeever family to the United States Fish and Wildlife Service (FWS) for permanent protection and management. The latest tract is a top FWS priority because the land provides ideal habitat for two federally protected songbirds—the golden-cheeked warbler and black-capped vireo. The primary purpose of the refuge is to conserve the nesting habitat for these endangered songbirds and other bird species which visit the area during the annual migration from breeding grounds in the United States and Canada to wintering grounds in Mexico, Central and South America. The property was purchased by FWS with funds from the federal Land and Water Conservation Fund (LWCF), which was secured by Senator Kay Bailey Hutchison, R-Texas. "We Texans are lovers of nature and the outdoors," Senator Hutchison said. "Protecting our natural habitats and wildlife is a desire we all share. I was proud to help secure these funds to enhance the Texas Hill Country and its wildlife. This effort will help protect the endangered species and unique environment of the Balcones for generations to come." "Protecting such a unique place so close to Austin, with this partnership, has been very special," said Jenny Parks, TPL project manager. "We deeply appreciate the leadership shown by Senator Hutchison, which has helped protect this special place. It is exciting that Texans now have another place where they can experience the fascinating wildlife that pass through this region." "We're thrilled to have added this ideal songbird habitat to the Balcones Canyonlands Refuge, rather than lose it to development," said Deborah Holle, refuge manager. "We value our partnership with the Trust for Public Land, and are hopeful that this relationship will continue to produce significant conservation achievements for Balcones, and allow us to provide more recreational opportunities for generations to come." The McKeever property—owned jointly by three brothers: Grant, Clark, and John, has been owned by the McKeever family for more than 50 years and has been used for ranching and family recreation. In 2002, after meeting with officials from the FWS, TPL crafted a deal with the brothers to convey shares of their property to the Balcones Refuge for permanent protection. "This has always been a special place for our family, and we're very happy that we can now share it with others," said John McKeever, part-owner of the property. "There's so much to explore out here and no other place quite like it in the state." The Balcones Canyonlands NWR was established in 1992. Currently, only 19,000 acres of the 46,000 acres needed to complete the Refuge have been preserved. Additional funds are being sought this year from the federal Land and Water Conservation Fund to purchase other significant bird habitat lands to be included in the refuge. The golden-cheeked warbler is a migratory bird that nests in only 33 counties in central Texas. Male warblers arrive in mid-March and establish territories of 3 to 6 acres. Females arrive a few days later and quickly select their mates. Male warblers sing loud and vigorously defend their territories in order to attract females. By the end of July, the warblers fly to the mountainous areas of southern Mexico and to the east-central Guatemala through Honduras to Nicaragua. During the winter, the Black-capped Vireo is found on the West Coast of Mexico. Often returning to the same area in subsequent years, male vireos arrive in Texas from late March to mid-April and set up territories that average 2 to 4 acres. Females chose mates as soon as possible after they arrive. Together, they build a single nest and participate in the incubation of the eggs. From August to September, the songbirds migrate back to Mexico for the winter. The Trust for Public Land is a national nonprofit land conservation organization that conserves land for people to enjoy as parks, gardens, and natural places, ensuring livable communities for generations to come. Since its founding in 1972, TPL has helped protect more than 1.9 million acres of land in 45 states. In Texas, TPL has protected more than 26,000 acres for communities, including areas in and around Austin, Dallas, Houston and San Antonio. The Trust for Public Land depends on the support and generosity of individuals, foundations, and businesses to achieve our land for people mission. Contact Us | Home | Donate Now | Site Map © 2005 The Trust for Public Land. All Rights Reserved. Privacy Policy

Foreclosure Property

Foreclosures Real Estate Website Directory [ Home ] [ Add a Website ] [ Modify a Website ] [ New ] [ Top Rated ] [ Email Updates ] [ Search ] Advanced search MAIN MENU TOP 100 SITES HOMES FOR SALE FOR REALTORS ADD YOUR WEBSITE JOIN THE TOP 100 LIST POST YOUR LISTINGS CONTACT SUPPORT ADVERTISING WEBMASTER Foreclosures Tips on buying a Foreclosure There are three types of foreclosure opportunities to look for. Pre-foreclosures, which are in the period before the foreclosure sale. Foreclosures, which exist when the property is taken back by the lender and sold at public sales. REOs, which exist when the lender ends up with the foreclosed property in it's own inventory after the public sale. How do I find the owners and borrowers? Pre-foreclosure Properties – You can approach the owner or borrower up until the time when the property actually is sold through foreclosure proceedings. If the owner or borrower isn’t living in the property, use one or more of these methods to hunt them down: * Don't be shy! KNOCK ON THE DOOR! - Simply be polite and see if you can gather information directly from the homeowner or renter. If you can get in the door you stand a much better chance of making an offer or finding out where the owner is. You are offering folks a way out of foreclosure -and possibly a more lenient approach than the bank might take to when they must vacate- if you buy the home. * By Mail – Send a letter to the owner/borrower at the property address or leave a letter for the owner/borrower at the property address (if you put it inside a mailbox, the USPS requires that you put a first-class stamp on it). In the letter, explain that you understand the property is going into foreclosure, and that you have some options so the owner/borrower can avoid credit problems, or possibly even retain ownership. * Use Public Records – If the owner/borrower doesn’t live in the property, check with the county courthouse. They’ll have the owner/borrower’s name on record. * Ask Neighbors – If the property is vacant, talk with neighbors to see if anyone knows how to reach the owner/borrower. Be sure to tell them you’ve got information to help the owner/borrower. * Open the Telephone Book – If you still can’t locate the owner/borrower, try calling people who have the same last name. You might happen upon a relative. Foreclosure Properties – You’ll find foreclosed properties at a public sales. The day, date, time and place is published in the newspaper. The usual location for foreclosure sales is at the county courthouse, and sometimes, they’re conducted on the courthouse steps. REOs – After the foreclosure proceedings, the lender may end up with the property if no one bids more than the lender’s bid, which is equal to the loan balance. At this point, the property is referred to as an REO or “real estate owned” (by the lender) property. REOs are great investment opportunities. REAL ESTATE NEWS CLICK HERE FOR REAL ESTATE NEWS MORTGAGE NEWS CLICK HERE FOR MORTGAGE NEWS MORTGAGE CALCULATOR Loan Amount Interest Rate (%) Term(Years) Starting: Mo.= January February March April May June July August September October November December Year= Amortization table No Yes Monthly Principal Prepayment Amount Annual Principal Prepayment Amount (Enter B here for Bi-weekly Loans) One-Time Prepayment Amount, to be paid before payment (month #) -- Powered by RealEstateAgencies.net

New Homes Foreclosures Advanced

Find Real Estate, Rentals, New Houses, Real Estate Agents and Mortgages on Yahoo! Real Estate Find Real Estate, Rentals, New Houses, Real Estate Agents and Mortgages Choose Location Home Homes for Sale Apartments for Rent Home Loans Moving & Insurance Tools My Real Estate Hurricane Katrina Resources Features Classifieds • Sell Your Home • Rent Your Apartment Home Loans • Mortgage Rates • Online Rate Quotes • Refinance Loans & Rates • Home Equity Loans & Rates • Free Credit Reports Resources • Find & Compare REALTORS • Find a Mover Insurance • Homeowner's Insurance • Renter's Insurance Tools • What's My Home Worth? • Research Neighborhoods • Free School Reports • Foreclosure Center • Home Service Center Commercial Real Estate • List Commercial Property National Mortgage Rates Thu Dec 29 Mtg Loan Rate APR 30-yr Fixed: 5.70% 5.88% 15-yr Fixed: 5.27% 5.57% 1-yr ARM: 4.53% 6.89% See Local Mortgage Rates Provided by Bankrate.com Neighborhood Profile Research neighborhoods nationwide! City, State, or Zip: Real Estate Listings Browse by City New! Home Loans Center - Find, Compare, & Graph Rates Find a Home Find a Rental City & State, or Zip: Price Range: $0 $30,000 $50,000 $80,000 $100,000 $125,000 $150,000 $175,000 $200,000 $225,000 $250,000 $275,000 $300,000 $350,000 $400,000 $450,000 $500,000 $550,000 $650,000 $750,000 $850,000 $1 million $1.25 million $1.5 million $1.75 million $2 million $2.25 million $2.75 million $3 million $3.5 million $4 million $4.5 million $5 million $6 million $8 million $10 million to No limit $30,000 $50,000 $80,000 $100,000 $125,000 $150,000 $175,000 $200,000 $225,000 $250,000 $275,000 $300,000 $350,000 $400,000 $450,000 $500,000 $550,000 $650,000 $750,000 $850,000 $1 million $1.25 million $1.5 million $1.75 million $2 million $2.25 million $2.75 million $3 million $3.5 million $4 million $4.5 million $5 million $6 million $8 million $10 million Beds: Any 1+ 2+ 3+ 4+ 5+ Baths: Any 1+ 1 1/2+ 2+ 3+ 4+ 5+ Search For: Existing Homes Yahoo! Classifieds New Homes Foreclosures Advanced Search Search Commercial Real Estate Mortgage Payments Calculate your biweekly & monthly payment for different loan amounts, interest rates and amortization terms. Loan Amount: $ Term (years): Interest Rate: % Show table?: Yes No See More Loan Calculators Sponsored Links New Homes and Home Builders - iNest iNest's guide to new homes and home builders in 19 states: AZ, CO, FL, GA, IL, IN, MD, MI, MN, NC, NM, NV, OH, SC, TN, TX, VA, UT and WI. Save 1% on your new home with a cash back coupon. www.inest.com What's Your Home Worth? Thinking of selling your home? Wonder how much it might be worth? You can find out with a free home or property valuation at HouseValues.com. Click here to get started. www.housevalues.com Micro Mosaic Home Decoration Decorate your home with ancient mosaic reproductions, free color and size customization. Choose among 4000 designs. www.mosaicmarble.com (Become a Sponsor) Partner Spotlight Featured Sponsor Find a Local REALTOR by HomeGain • Find & Compare REALTORS • Get Home Prices Featured Videos Dream Home Videos by Inman Stories Real Estate News Financing your first real estate investment Dec 29, 2005, Inman News Top Mistakes of Home Buyers and Sellers in 2005 Dec 29, 2005, Realty Times Housing Affordability Hits 14-Year Low Dec 22, 2005, RealEstateJournal.com Home loan applications fall to over 3-1/2-yr low Dec 28, 2005, Yahoo! Finance Weekly Home Mortgage Rates (AP) Dec 28, 2005, Yahoo! News Despite Decline, Housing Still Strong Dec 28, 2005, Quicken Loans more real estate news Homes For Sale - Apartments For Rent - Current Mortgage Rates - Real Estate Agents - Local - Yellow Pages