In 2021, the tax-free gift amount was $15,000. In 2022, that has risen by one thousand dollars, making the limit for tax-free gifts in 2022 a total of $16,000. Tax free means that no tax is due to the donor or the donee. There are provisions that would allow gifts higher than this amount providing […]
Category Archives: Tax Deductions
Tax Free Renting of Your Primary Home
In the U.S. tax code, a little-known provision allows homeowners to rent out their principal residence or second home for up to 14 days a year without having to use that money as income. But the taxpayer cannot deduct any rental expenses associated with this income. You can earn as much as you want with […]
Tax Deduction Issues with Mortgage Interest
Standard or Itemized Deductions
In 2017, the Tax Cuts and Jobs Act increased the standard deduction for married couples to $24,000. In some instances, homeowners may be better off using the standard deduction than itemizing on their return. Previously, homeowners could get a better benefit with itemizing but there is now a $10,000 limit of state and local taxes […]
Your Home’s Equity Could Be the Answer
Deduct Your Interest and Lower Your Rate
America’s credit card debt is back and at levels we saw prior to the recent recession. According to CreditCards.com Weekly Credit Card Report, APR’s are running just under 16 percent. But homeowners have an advantage that renters do not when it comes to dealing with high debt. Debt advisors will tell you that you need […]
Tax Benefits of Home Ownership
In 1913, the 16th amendment introduced personal income tax and U.S. taxpayers have enjoyed specific tax benefits for home ownership. These tax benefits may not be the reason why most people buy a home, but they are real and are not available to people who rent. Changes made to the capital gains tax code in […]
Re-think Rentals
Contributors to the rate of return on rental real estate are appreciation, cash flow, leverage, tax advantages and equity buildup. If all of this is confusing and is keeping you from investing in rental property, take a different approach. Let’s cut out all but cash flow and equity buildup as factors to buy rental property. […]
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Do you want more for your money?
There are several types of investment opportunities in the world today. If you take a certificate of deposit, this generates cash flow depending on its interest rate but that is the only way it generates investor returns. If you invest in stocks, and don’t get paid dividends, you only earn your investment back if you […]