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 Lisney's investment

Commercial + Investment, Property Estate Agent: Dublin–Cork–Belfast Ireland For Auction/Sale/To Let/Rent HOME CONTACT US ABOUT US NEWS PUBLICATIONS PROPERTY ALERTS SITE MAP Introduction Dublin Office Cork Office Belfast Office Financial Services Introduction Commercial Property At Lisney's offices in Dublin, Belfast and Cork you can get strategic advice on all aspects of commercial property transactions, covering office, retail, leisure, industrial and business space as well as land. Clients benefit from a wide range of services including sales, lettings, acquisitions, development and investment appraisal. Such advice is available to both landlords and tenants/occupiers. In our dealings with landlords, we act for many large, established property developers and investors. Through our alliance with Cushman & Wakefield Healey & Baker, we provide extensive corporate representation for many global companies operating in Ireland Investment Property Lisney's investment team is active in the institutional, private and tax-based investment markets. Our services include the disposal and acquisition of standing investment portfolios, valuations, advice on forward funding opportunities and joint ventures, as well as on sale and leaseback arrangements. Amongst our many clients are the majority of the large institutions, property companies, state bodies and private investors. Through our association with Cushman & Wakefield Healey & Baker, Lisney is also in a strategic position to extend and enhance our client investment services around the world. Our International Investment team provide advice to Irish clients seeking international investment opportunities in the UK, mainland Europe and across the United States Lisney has a wide range of investment properties available. For reasons of confidentiality we cannot display all of them. If you are interested in investment property, please contact Dublin office: Ann Hargaden FSCS FRICS Director Lena Clarke ASCS ARICS Divisional Director Anne-Marie Sheehan ASCS ARICS Investment Surveyor International: Duncan Lyster BSc MIAVI Divisional Director Robert Janke BSc MBA EPMIR MIAVI Investment Surveyor Belfast office: Andrew Marsden MRICS Director (Northern Ireland) Cork office: Margaret Kelleher ASCS MRICS Director © Lisney 2004. All Rights Reserved Disclaimer Privacy Statement

Home Loan

Sallie Mae, the nation's number one paying for college company. About us | Investors | News | Working@SallieMae | Contact us -- Manage Your Loans SM log in User ID Password Your account is secure . Enroll now! Log in today and you could win $25,000! Forgot user ID? Forgot your password? ¿Tiene alguna pregunta acerca de ManageYourLoans.com? © 1995-2005 Sallie Mae. All rights reserved . | Privacy . | Terms of use . | Avoid online fraud . SLM Corporation. and its subsidiaries (other than the Student Loan Marketing Association) are not government-sponsored enterprises or instrumentalities of the United States of America. -- SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America. Plan for college Apply for a loan Manage your loans Additional financial services Preparing Selecting Applying Applying for financial aid Finding free money Glossary FAQs Borrowing for school Tracking your loan Financing your child's education Student specials FAQs Getting started Finances after school Being on time pays! Make a payment Change payment plan Difficulty paying? Postpone payments Insurance Home mortgages Investments Personal loans Communications Undergraduate students • Federal Stafford Loan • Signature Student Loan • Federal Perkins Loan • Community College Loan Graduate students • Graduate Loans • MBA Loans • Law Loans • Medical School Loans Parents of students • Federal PLUS Loan • Tuition Answer Loan • K-12 Family Education Other loans • Federal Consolidation Loan • Tuition Answer Loan • Career Training Loan • Continuing Education Loan Solutions for institutions • For Schools : Discover how we can help you with the business of education. • For Lenders : Log in to access loan data. • For Guarantors : Online account access and support tools.

Real Estate Broker

Weichert Realtors: Homes for Sale & Real Estate Listings in NJ,NY,FL,VA,MD,DC,CT,PA,MA,SC,NC,TX,GA,DE,OH,TN,WV En Espanol City & State, or Zip: MLS #: Price Range: $ ,000 To: $ ,000 Rentals Careers at Weichert Luxury Homes Historic Homes New Homes and Land Corporate Housing Commercial & Investments Insurance Gold Services Relocation Real Estate Schools Referral Associates Franchise Opportunities Start your Home search here, or click on the map. Please Select Alabama Arkansas Connecticut Delaware Florida Georgia Illinois Maryland Massachusetts Missouri New Jersey New York North Carolina Ohio Pennsylvania South Carolina Tennesee Texas Virginia Washington, DC West Virginia Weichert, Realtors proudly donated $1.3 million to the American Red Cross for the victims of Hurricane Katrina Also Search For: Selling · Open Houses · Mortgages · Associates · Offices Browse By State: Alabama Real Estate Properties New York Real Estate Properties Arkansas Real Estate Properties North Carolina Real Estate Properties Connecticut Real Estate Properties Ohio Real Estate Properties Delaware Real Estate Properties Pennsylvania Real Estate Properties Florida Real Estate Properties South Carolina Real Estate Properties Georgia Real Estate Properties Tennesee Real Estate Properties Illinois Real Estate Properties Texas Real Estate Properties Maryland Real Estate Properties Virginia Real Estate Properties Massachusetts Real Estate Properties Washington, DC Real Estate Properties Missouri Real Estate Properties West Virginia Real Estate Properties New Jersey Real Estate Properties Call 1-800-USA-SOLD (1-800-872-7653) Buying a House | Selling a Home | Open Houses | Real Estate Agents | Realtor Offices Find a Mortgage | My Real Estate Listings | About Weichert | Home | Contact Us Real Estate Franchise Opportunities | Weichert Careers © 2005 Weichert Realtors. All rights reserved. Terms of Use | Privacy Statement REALTOR® -- A Registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS ® and subscribes to its strict Code of Ethics. Inquiries regarding the Code of Ethics should be directed to the board in which a REALTOR® holds membership. © 2005 Weichert Realtors. All Rights Reserved.

Real Estate Investing Abbreviations

Real Estate Investing Abbreviations - REIClub Free Investing Books, Audios - Click Here to View Receive 5 Free Bonuses! Click Here to Subscribe! Site Navigation Investor Information Home Investing Newsletter Real Estate Articles Success Stories Recommended Reading Free Investing Books Investing Glossary Investing Abbreviations Community Tools Real Estate Chat Room Chat Room Schedule Real Estate Forums Newsgroup Forums Beginners, Carlton Sheets Bird Dogs, Wholesaling Foreclosures, Short Sales Sub2, Lease Options Rehabbing, Landlording Financing, Hard Money Asset Protection, Legal Commercial, Mobile Homes Real Estate Marketing Product Catalog Best Sellers All Investing Products Real Estate Audios Real Estate Books Real Estate Courses Real Estate Ebooks Real Estate Forms Real Estate Software Real Estate Videos Course Specials Investor Services Miscellaneous Real Estate Seminars No Risk Guarantee Investor Resources Real Estate Clubs Cash Flow Clubs Hard Money Lenders State Property Codes Tax Appraisal Districts Investor Referrals Business Tools Real Estate Forms Investor Network Ads Real Estate Classifieds Site Information Advertising Rates Advertiser Login Link to REIClub Contact REIClub Real Estate Investing Abbreviations REI Abbreviations AFD - Agreement For Deed AITD - All Inclusive Trust Deed APR - Annual Percentage Rate ARM - Adjustable Rate Mortgage ARV - After-Repaired Value BOR - Board of Realtors CAD - County Appraisal District Cap - Capitalization CCIM - Certified Commercial Investment Member CCR - Conditions, Covenants, and Restrictions CFD - Contract for Deed CLTV - Combined Loan To Value CMA - Comparative Market Analysis COCR - Cash on Cash Return COF - Cost of Funds COO - Certificate of Occupancy CRB - Certified Residential Broker CRE - Creative Real Estate CRS - Certified Residential Specialist DBA - Doing Business As DCR - Debt Coverage Ratio DOS - Due On Sale Clause DOT - Deed of Trust DSCR - Debt Service Coverage Ratio FCRA - Fair Credit Reporting Act FFE - Furniture, Fixture, and Equipment FHA - Federal Housing Administration FHLMC - Federal Home Loan Mortgage Corporation, Freddie Mac FMR - Fair Market Rent FMV - Fair Market Value FNMA - Federal National Mortage Association, Fannie Mae FRBO - For Rent by Owner FSBO - For Sale by Owner GMAC - General Motors Acceptance Corporation GRM - Gross Rent Multiplier HELOC - Home Equity Line of Credit HML - Hard Money Lender HOA - Homeowners Association HUD - Housing and Urban Development HVAC - Heating, Ventilation and Air Conditioning IRA - Individual Retirement Account IRC - Internal Revenue Code IRR - Internal Rate of Return IRS - Internal Revenue Service L/O - Lease Option L/P - Lease Purchase L/S - Landlord Seller LIBOR - London Interbank Offering Rate LLC - Limited Liability Company LOC - Line of Credit LOI - Letter of Intent LP - Limited Partnership LPOA - Limited Power of Attorney LTV - Loan to Value MAI - Member Appraisal Institute MAO - Maximum Allowable Offer MIP - Mortgage Insurance Premium MLS - Multiple Listing Service MUD - Municipal Utility District NAR - National Association of Realtors NIV - No Income Verification NNN - Triple Net Lease NOD - Notice of Default NOI - Net Operating Income NOO - Non-Owner Occupant O/F - Owner Finance OO - Owner Occupant P&S - Purchase and Sale PITI - Principal Interest Taxes Insurance PMI - Private Mortgage Insurance POA - Power of Attorney PUD - Planned Unit Development REI - Real Estate Investing / Real Estate Investor REIA - Real Estate Investors Association REIT - Real Estate Investment Trust REO - Real Estate Owned ROI - Return On Investment RTO - Rent to Own SFH - Single Family House SFR - Single Family Residence Sub2 - Buying property subject to existing financing T/B - Tenant Buyer TAA - Texas Apartment Association TAR - Texas Association of Realtors TIL - Truth In Lending TREC - Texas Real Estate Commission UBIT - Unrelated Business Income Tax UCC - Uniform Commercial Code VA - Department of Veterans Affairs / Veterans Administration Back to Top Forum Abbreviations AFAIK - As Far As I Know AFK - Away From Keyboard AKA - Also Known As BBIAM - Be Back In a Minute BFN - Bye For Now BRB - Be Right Back BTW - By The Way CUL - See You Later FYI - For Your Information G2G - Got to Go IMHO - In My Humble Opinion IMO - In My Opinion LMAO - Laughing My Ass Off LOL - Laughing Out Loud NT - No Text ROFL - Rolling on the Floor Laughing ROTFLMAO - Rolling on the Floor Laughing My Ass Off TIA - Thanks In Advance Back to Top Privacy | Terms of Use | View Cart 2002-2004 All Rights Reserved. REIClub.com