Can I deduct 2006 real estate taxes that I paid to the sellers at closing in 2005?
145613
If you paid the tax in 2005 then the payment can be deducted on sch A.  Keep your cancelled check or settlement statement as support in your records.
1120438
Great point TaxGuru... great answer too.\n\nI'm referring to the fact that you might have depreciated the property and refinanced the property (taking cash out) over the years.  You might have only paid off your liens, but still received funds in excess of your adjusted basis.\n\nCalculating your real estate gain takes into account a number of factors.  Your original purchase price could have easily been much lower than your present liens.  Although you wouldn't have had to pay gains tax when taking cash out, you would have to account at the time of sale/title transfer.\n\nI've been working on my 1031 exchange real estate site, and should complete the site by July 4th.  Many of the functions are up and running.. you can calculate your capital gain here:\nhttp://www.1031store.com/resources/1031_capital_gains_calculator.php\n\nAlso, the site will have a place where you can search for professionals who will be able to help you... notably accountants(1031 exchanges are about deferring capital gains).\nhttp://www.1031store.com/experts/1031_exchange_experts.php\n\nI hope that you do not owe anything because this sounds like a tough situation.  Your foreclosure expenses probably ate up an awful lot of your potential gain.  You might want to also contact a real estate attorney to make sure that you are getting a fair shake.\n\nHope that this helps...
521478
Unfortunately, you can only roll it over into another investment property (Like-kind exchange)  Applying it to your residence will not work.  You have sixty days (before or after the closing) to identify another property and 180 days to close on it.  If you held the property for investment (say yes) and held if for over 12 months, you will pay tax on it at the lower capital gains rates. If you held it for less than 12 months, it is considered ordinary income and is taxed at your regular rate.  If it is less than a year, see if the buyer will wait until the year is up.  Give them soem money back at closing to compensate them for waiting.  It could be worth your while.  To see what the tax might be, use your tax software to estimate what your tax would be.  Sorry to hear about the medical problem, I hope everything works out.  Also, ANY profit is a good profit!!!!!
872955
You may pay several different taxes depending on where you live.\n\nSome places have a transfer tax when you buy the house, sort of like a sales tax.\n\nMost cities and counties have real estate taxes based on the value of your home. Sometimes there is a school tax, too, but sometimes they're combined.\n\nThese taxes are all deductible on your federal income tax if you itemize.\n\nSome places have a sewer tax that is based on water use so it may or may not be deductible.\n\nYour best source for this information would be a Realtor and a tax adviser.
521287
Ad valorem taxes are totally separate from cost basis.  Property taxes are deductible on schedule A of the 1040 income tax return, and don't affect cost basis.  From the facts stated, Heather's realized amount cannot be determined, as it would change with realtor fees, HOA assessments, survey costs, appraisal fees, etc.  As for Keith's basis, it would begin with $300,000 dollars, plus anything paid for other closing costs (but not the real property taxes.)
73325
Yes, it's okay.  You just need a paper trail.  The rental business needs to make sure they use their tax id when purchasing.  This eliminates the sales tax for the purpose of resale.  That resale can either be retail or rental.
355256
At this point, no.\n\nI think your understanding of how it is handled is incorrect.   Assuming you use the house as your personal residence for two of the last five years, you can deduct up to $250k of capital gain if you file anything except MFJ.  If you file MFJ, then you can deduct up to $500k.\n\nIf your basis is $500k, file single, and sell the house for $750k, the gain isn't taxable.  Any amount over $750k would be taxed as long terms capital gains.
70859
one major deduction that is not used very often requires planning.  you can decide that you want to pay upfront for many of your medical expenses, such as prescriptions and eye wear all in one year and not in the next or vice versa.  it's too late to do anything about it for 2005 taxes, but you can think about it for 2006.  pay real estate taxes early, donate to charity, pay medical and dental and eye care in full throughout the year and don't let anything carry over.  hope this helps.
463291
Home improvements are NOT tax deductible, ever.  The only time they matter is if you sell your home, and only then if your gain on the sale exceeds the current $250,000 individual/$500,000 married couple gain exemption...in which case the cost of improvements would be added to the original cost basis of your home, and then only the difference between THAT total (LESS the $250K/$500K exemption) and the ultimate sales price you received would be taxed.\n\nThere is talk of the IRS doing away with that $250K/$500K gain exemption...so hang onto your receipts and records...because if that happens, you may need them later to help with taxes when you sell your home.
94745
Not if it was your primary residence.\nIf it was rental property then you have to declare the gain.\n$10,000 - basis (what you paid for it) + depreciation (basis/27.5 * # of years rented)\nIf it was a second home, talk to a tax pro (not HR Block or another chain)\n\nDick
1149299
Claim what?  You don't get any tax benefits just for owning a house.  But on your itemized deductions, there's slots for the mortgage interest and property taxes you've paid in the last year.  That, in most cases, is deductable.
346734
Yes you must declare the income, but you can also deduct any expenses related to renting, plus anything you pay to maintain the property.  You mentioned utilities and yes you can deduct half of those easily; and the best part is you can deduct a depreciation schedule on the condo.  But for that you need a CPA or accountant.
728502
If you are a US resident, living and selling a property in the US, you have one year from the date of sale to buy another, more expensive property, to avoid capital gains taxes.
470879
Points, mortage interest and real estate taxes are deductible and should be reported to you by your mortgage company.\n\nFees such as document processing fees are not deductible, but you are able to add them to your basis if you have a capital gain on the sale of your house.  I would not worry too much about computing the basis of your house purchase(since there is a 250/500 K exclusion), but I would keep the documentation so I had it just in case you need to compute it.\n\nHOA fees might be included in your closing costs and are never deductible(or added to the deduction) because it is an expense for your benefit.
726088
You can deduct state, local, and foreign real estate taxes on ALL real estate you own.\n\nYou can deduct mortgage interest on ANY two homes you own.  You can only deduct mortgage interest on the first $1 million (total) of loans used to buy, build, or improve your home and only on the first $100,000 of other mortgage loans (home-equity).  If you think you may be over these amounts, or if you want to investigate further, I suggest reading the attached publication from the IRS.
95613
I would contact the taxing entity and obtain ther fair market vakue from them, or contact a realtor and have them find out for you.
990612
Was that house ever your principal residence in the last 5 years, for 2 years or more?  You get a huge tax savings if it was.  You really need to talk to either a good real estate person or an attorney/CPA and find out the tax consequences.  If it was your principal residence, you do not pay capital gains on the profit you make on the house.  If it wasn't your principal residence for 2 of the last 5 years, you do have to pay profit on the sale.  It can be complicated, you need advice from someone in your area, not a bunch of strangers off the internet.  Good luck!