Posted in home improvement loans

After divorce, what taxes will I owe on this home sale?

Q. I got divorced a year ago after being separated for more than five years. My ex-wife has been living in the property for the last six years and I lived elsewhere. The gain after paying off the mortgage and closing costs is $77,000. As part of the divorce decree she gets half the money. Do I have to pay capital gains on the whole capital gain or half?

— Divorced

A. To answer your question it is important to understand three basic things about your situation.

The first thing to understand is what your actual capital gain is on the sale. Next is what part of this gain will be taxed by the IRS, and finally, you need to understand what your divorce settlement says and how that will impact your set of circumstances.

Your capital gain is not what you keep in your pocket after the sale of

Read More
Continue Reading After divorce, what taxes will I owe on this home sale?
Posted in home

Here’s what owning a second home means for your taxes

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.

  • If you’re considering buying a second home, there are a few pros and cons to weigh when it comes to your taxes. 
  • Homeowners can deduct up to $10,000 total of property taxes per year on federal income taxes, including taxes on a second home.
  • If you don’t rent out your second home, it’s taxed much like a primary residence, with mortgage interest and property taxes deductible. 
  • If you’re planning to rent out your second home for part of the year for income, however, your taxes will be much different, with more deductions available, and income tax due on any rental income. 
  • Policygenius can help you compare homeowner’s insurance policies to
Read More
Continue Reading Here’s what owning a second home means for your taxes
Posted in home improvement loans

How canceled student-loan and mortgage debts could affect your taxes and the secret to selling a home quickly during a pandemic

Hi, MarketWatchers. Don’t miss these top stories:

Personal Finance
‘We only want to start a home that we know will get paid for when it’s completed.’ KB Home CEO Jeffrey Mezger on his approach to the home-building boom

The pandemic has made home buyers more interested in kitchen storage and adding bathrooms for family members living with them.

The Property Brothers share the little extras that make a big difference in a home

“Property Brothers” stars Drew and Jonathan Scott know that people love homes with unexpected extras — and on the latest episode of “Brother vs. Brother,” they reveal which extras matter most.

The secret to selling a house quickly during a pandemic? Good listing photos

There is no perfect time to sell a house—anyone who’s ever put a property on the market will tell you that. Sure, tradition tells us that selling in spring might be ideal. But

Read More
Continue Reading How canceled student-loan and mortgage debts could affect your taxes and the secret to selling a home quickly during a pandemic