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Budget 2023 update: It is proposed that the cost of acquisition of a property should not include any home loan interest claimed as an income-tax deduction by the seller throughout the holding term for computing capital gains from the sale of a residential property. Income tax on house property: On Owning a house one day – everybody dreams of this, saves towards this and hopes to achieve this one day. However, owning a house property is not without responsibilities. Paying house property taxes annually is one of them. If you want to learn how to save tax on home loan interest, this guide is for you. It also talks about how to report home ownership in your income tax return.

Around 1.35 million people were affected by the tapering of the Personal Annual Allowance in 2023/24. It could mean their Income Tax bill was higher than expected because they fell into the 60% tax trap. To find out if you could unwittingly be paying a higher rate of Income Tax than you expect, click the link below. Approver: Quilter Financial Services Ltd and Quilter Mortgage Planning Ltd 30/07/2024

New capital gains rules on property: Can you add stamp duty, home loan interest amount to your property cost to lower LTCG tax? https://lnkd.in/gPntVEPT

Owning commercial real estate comes with several tax advantages for small businesses. These may include deductions for mortgage interest, property taxes, and depreciation. Additionally, when selling, you can use strategies like 1031 exchanges to defer capital gains tax.

We regularly mention the need to structure and document transactions appropriately. This is for many, many reasons. One of those reasons is to help substantiate the intended tax treatment. Merely "booking" something one way or another does not suffice. In many contexts, particularly between related parties, the law presumes certain treatment or otherwise looks with scrutiny on purported beneficial tax structures. Intrafamily loans are one of those areas. The Ninth Circuit recently affirmed the Tax Court's decision in the Bolles case finding that purported loans from a mother to her son constituted taxable gifts. Given the facts, primarily that the son was incapable of repaying his mother's advances, it is possible documentation would not have changed the outcome. However, proper documentation, security, history of payments, etc., certainly would have made it much more likely to have obtained the intended results. #tax #estateplanning #esapllc #irs #taxlaw #gifts

How Buying a House Can Save You Money Discover the surprising tax benefits of homeownership with Jared. While he's not a tax professional, Jared sheds light on how owning a home can lead to significant tax deductions. From property taxes to mortgage interest and private mortgage insurance, learn how these expenses can lower your tax bracket and save you money on federal and state income taxes. Don't miss out on potential savings—watch now to optimize your tax strategy! #mortgagelending #mortgageinsurance #homeownersinsurance #smallbusiness #usrealestate #mortgagelendertips #USDA #homebuyertips #mortgageloantips

Understanding Tax Impound Accounts A tax impound account is a designated account managed by your mortgage lender to ensure timely payment of key property-related expenses, such as property taxes and homeowner's insurance. A portion of your monthly mortgage payment is allocated to this account, allowing the lender to pay these expenses on your behalf. The number of months required to fund your tax impound account depends on when you close your real estate transaction. Our comprehensive Tax Impound Chart clearly outlines how many months of tax impounds are needed based on the timing of your closing. Key Points to Remember: -Property taxes are typically due in two installments: the first half in November (delinquent by December 10th) and the second half in February (delinquent by April 10th). -When refinancing, any funds in your current escrow account will be refunded, but a new impound account will need to be established with the required impounds. To view specific details, access our Tax Impound Charts by clicking here: https://lnkd.in/gzpR3jg5 Have questions? Feel free to contact me, Kelly McConnell Phone: 714-812-5356

Tips to help rental property owners avoid common tax mistakes. Whether you use a tax agent or choose to lodge your tax return yourself, avoiding these common mistakes will save you time and money. 𝗖𝗹𝗮𝗶𝗺𝗶𝗻𝗴 𝗯𝗼𝗿𝗿𝗼𝘄𝗶𝗻𝗴 𝗲𝘅𝗽𝗲𝗻𝘀𝗲𝘀: If your borrowing expenses are over $100, the deduction is spread over 5 years or the term of the loan, whichever is shorter. If they are $100 or less, you can claim the full amount in the income year you incur the expense. Borrowing expenses: • include loan establishment fees, title search fees and costs of preparing, stamp duty on the mortgage and filing mortgage documents. Don’t include stamp duty charged by your state or territory government on the property title (this stamp duty is included in the property’s cost for CGT purposes). Remember to apportion your borrowing expenses in the first year based on the number of days you own the property. Need help? 📱0423 861 291 📨 info@madaccounting.com.au 🌐 madaccounting.com.au

As a homeowner, you have a lot of expenses to worry about. But did you know that some of these expenses can be tax deductible? Here are 8 tax deductions that you should be aware of if you own a home: 1. Mortgage Interest 2. Home Equity Loan Interest 3. Discount Points 4. Property Taxes 5. Necessary Home Improvements 6. Home Office Expenses 7. Mortgage Insurance 8. Capital Gains As you can see, there are many tax deductions available to homeowners. However, navigating the complex world of tax law can be challenging, which is why it's important to consult a professional. At Taxation Solutions, we have the expertise to help you maximize your deductions and ensure you're taking advantage of all the tax benefits available to you. Contact us today to learn more about how we can help you save money on your taxes!