Tax matters when selling a home

With the real estate market still so hot, you might be tempted to cash in. If you do, consider the following tax matters when selling a home. Don’t miss: Arizona’s alternative tax Principal residence exclusion You may qualify to exclude from income all or part of any gain from the sale of your home (“principal …

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FIRPTA withholding on sale of U.S. real estate

The Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) allowed the United States to require income tax withholding when a non-US person sells U.S. real estate. Property sold on or after February 17, 2016 is required to withhold 15%. Real estate sold before this date was subject to a required withholding rate of …

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Is a cattle ranch with no cattle a hobby or a business?

Generally, a taxpayer can deduct all ordinary and necessary expenses paid or incurred to carry on a valid trade or business, even if this would create an overall loss on the income tax return. However, if the taxpayer’s activity is considered a hobby, rather than a business, deductions are limited to the gross income earned …

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How does selling my house impact my taxes?

Congratulations! You sold your house! And in this market, no doubt made a mint. So now you’re probably wondering how does selling my house impact my taxes? A gain on the sale of a home is the result of when the home sells for more than what was paid for it. When it comes to …

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Tax reform: will I lose my mortgage interest deduction

I have received this question from friends, family and clients a lot recently. Like many Americans, you are probably asking if you will be able to continue to deduct your mortgage interest. As with all tax questions, the answer is it depends. TCJA applies for tax years 2018 through 2025. In 2026, the pre-Act rules …

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Like-kind exchange: Tax Cuts and Jobs Act of 2017

Amid the myriad of changes in the new tax law, there is a change to what type of property can be exchanged under code Section 1031 as a qualified like-kind exchange. What’s changing? Under Code Section 1031, a taxpayer can elect to not recognize gain if he/she exchanges qualified property for similar qualified property, or …

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Residential rental licensing matrix: tax tips

Are you looking to purchase a residence to use as a rental property and you are unsure if you need to report and pay sales taxes for the city it is located in? Or maybe you are a tax professional who has a client asking you this question. In either case, I just found the …

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Like-kind exchange: talk to your CPA first

As tax accountants, there is nothing we like less than hearing about a transaction after it has already closed, for example, a like-kind exchange. When we are only brought in after the fact, there is often nothing for us to do but report what already happened. Tax planning is the most valuable service we can …

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Potential AMT risk for foreigners selling U.S. real estate

As the U.S. housing market continues to improve, many property owners are able to take advantage of the increase in property values and higher asking prices when they decide to sell. As such, sellers need to be aware of the tax implications when selling a home. Nonresident aliens especially need to be aware of their …

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Office vacancy rate in greater Phoenix lowest since 2008

2016 Third Quarter Greater Phoenix Office Highlights Below are excerpts from CBRE Marketview, Office, Q3 2016 and Collier International’s Research & Forecast Report Greater Phoenix/Office 3Q 2016. Vacancy In quarter 3 (Q3) 2016, net absorption in Metropolitan Phoenix reached 801,250 square feet (s.f.). For the fifth consecutive quarter, Tempe led all submarkets with 621,885 s.f. …

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