Sellers - IRS Tax Tips when you sell!

Here are the IRS's top 10 tax tips for home sellers:

1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.


2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).


3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.


4. If you can exclude all of the gain, you do not need to report the sale on your tax return.


5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.


6. You cannot deduct a loss from the sale of your main home.


7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude.


8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.


9. If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year's tax return.


10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.

These tips can be found on the IRS website at http://www.irs.gov/newsroom/content/0,,id=104608,00.html.

Home Improvements BEFORE You Sell?

Lets face the facts; today's home buyers are LESS WILLING to COMPROMISE! 

Sellers Temptation: To clean up the yard, de-clutter the house, and put it up on the market without spending a dime. Why would you want to right? Your trying to sell in this market and break even or make as much profit that you can! WRONG!

Some agents will recomment you do AS LITTLE AS POSSIBLE to get your home ready for sale. And I am not saying this won't work...if you are pricing it at a bargain. However, most buyers in today's market are nervous and picky. They are not in a hurry and want a house that is in move-in ready condition.

So as a seller what do you do? Of course you don't want to invest in your home when you are trying to sell and not get back your investment! Well....here are a few key things to consider when deciding what to do before you list:

1. Find an agent who can see the vision and potential in your home. It can COST YOU A SALE if you don't. One agent told a seller not to do anything before listing (For their reputation I will not mention any names). The house was nice but the seller's furniture was too large and made the rooms look small and the hardwood was damaged by the dogs, and the yard was overgrown. After the house didn't sell another agent was hired (Guess who?) who recommended a large list of items to address BEFORE listing the home. Unfortunately, due to the market decline, even thought the house sold quickly with multiple offers now, it solf for less than what it would have if it showed right the first time it hit the streets!  So the lesson here is...find the agent who is looking out for you! Sometimes we don't tell you what you want to hear (like don't do anything we will sell your house fast anyway). Find the person who will tell you the TRUTh (ex: do these repairs and then i can list your home). The wait will be worth it when you actually sell!

2. When you find the right agent. Ask for a list of contractors who you can call to help get the work done for competitive prices.

3. Have the agent prioritize the list of To-Do's for you in order to get a timely sale. Typically the kitchen is a good place to start. Usually some cost-effective improvements like changing light fixtures, changing cabinet hardware, replacing a out-dated floor, or painting can be all you need. At times it may make sense to change a countertop or old appliances. However, gutting a kitchen or remodeling it is not usually going to get your money back at the sale.

4. PAINT PAINT PAINT! Paint is a great idea and sometimes one you seller's take on without any advise. Paint is the most cost effective and likely the best return on your investment, PROVIDED YOU USE THE RIGHT COLORS! That is what we are here for. If you don't know let us help pick them out! We run with buyers everyday and know what the Majority are looking for. When you are selling you can't paint what YOU like. It is no longer about you but ITS ABOUT THE NEW BUYER! We are here to make suggestions based on our experiences and expertice!

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3 BD beautiful Winslow Township rancher

$169,900

HUGE PRICE DROP to sell fast - 2BR Deptford 55+ home

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Taking the Stress Out of the Home-Buying Process

Taking the Stress Out of the Home-Buying Process


By Paige Tepping

RISMEDIA, November 20, 2010--For many prospective buyers, the thought of going through the home-buying process is often filled with a lot of stress. From finding a qualified real estate agent, to narrowing down your choice of homes and then packing your belongings and moving across town can be an overwhelming process.

OpenSkyRealEstate.com offers the following tips to help you keep your cool as you begin the process of a buying a home.

-Buying a home is one of the biggest financial decisions you will make in your lifetime, and along with the finances come emotions. When you are choosing a real estate agent to work with, be patient and take the time you need to find an agent that you connect with. Finding a highly-skilled agent who fits with your personality is crucial.

-Every home buyer and seller is in a different situation, so it is important that you don’t compare your timeline and decisions to anyone else’s. As you make your way through the home buying process, remember that there is no right time to buy, just as there is no perfect time to sell. If you find a home that fits your needs, don’t let it slip out of your hands by waiting for interest rates to drop lower as you run the chance of losing out on the home of your dreams.

-It is natural to want to get opinions from those you trust before you make your final choice, but too much input will ultimately make the decision process much harder. Remember to focus on what your immediate wants and needs are so that everyone will be happy with the final decision.

-You probably aren’t going to find a home that is 100% perfect, so it is important to make a list that includes your top priorities that you can’t live without. Be sure to stick to the items on your list and let go of the minor things.

-Negotiation is an important part of the real estate buying process, but be sure you don’t take your negotiating too far. Trying to get an extra-low price or refusing to budge on your offer may cost you the home in the end. Successful negotiation depends on give and take, so make sure you are being fair in your requests.

-Don’t get too caught up in all the physical aspects of a home and forget about the more important issues. While the size of the rooms and the layout of the kitchen might not be exactly what you expected, be cognizant of issues such as noise level, location to amenities and other aspects that will have an impact on your day-to-day life.

-Getting approved for a mortgage should be taken care of well before you find a home and make an offer.

-Create a budget before you move into your new home and be sure to include maintenance and repair costs. Even if you buy a new home, there will be extra costs, so it is important to not come up short and let your new home deteriorate.

-After purchasing a home, a little buyer’s remorse is inevitable, but it will pass. Buying a home is a big financial commitment, but it also yields big benefits. If you are feeling remorseful after buying your home, remind yourself why you wanted to buy a home and what made you fall in love with your new property.

-When choosing a home, buy it because you love it. A home’s most important role is to serve as a comfortable, safe place to live, so don’t get bogged down with thinking about your home’s appreciation.

Pay Off Debt Before Saving for Retirement

Pay Off Debt Before Saving for Retirement


By Claudia Buck

RISMEDIA, November 20, 2010--(MCT)--Hard times elicit tough choices. This week, Steven Zeller, a Gold River, Calif.-based investment adviser, tackles a reader's question on credit card debt and mortgage loans.

QUESTION: I've entered into a hardship payment program with the six banks that issued my 10 credit cards. I'm paying off $80,000 at an overall interest rate of 6 percent (down from an average of 20 percent). Due to the reduced payments, I now have $3,000 in monthly surplus income to either invest with, or pay down the credit cards.

I also have an upside-down mortgage on a rental house owned as income property. The bank seems (unwilling) to either modify or reduce the principal so I can sell it.

In time, this will all find its way into (Chapter 11 bankruptcy) courts. Life would be simpler if I pay down the credit cards and concentrate on (getting) the house above water. Instead, I've decided to invest the surplus in ERISA retirement vehicles and Roth IRAs. They would be exempt from collections but available as bargaining chips when negotiating with creditors. What is your opinion?

ANSWER: I would not encourage anyone to go into bankruptcy proceedings if he or she can help it. It creates a lot of stress and is not the best for your self-esteem.

If you have 10 credit cards to pay off, 6 percent is a pretty good deal instead of 20 percent.

I would begin paying off the credit cards, starting with the smallest one first, until they are all gone for good.

It may be painful at first, but you will increase your cash flow over time by (eliminating) the monthly payments.

Then I would attack the upside-down situation with your rental. In the long run, it is better, financially and emotionally, to be debt-free. And if the (credit card issuers) are giving you that opportunity, I would jump on it.

It would be a great personal and moral accomplishment.

At the end of the day, if you pay into an IRA and Roth IRA instead of paying down your credit card debt, you will still have debt. As far as negotiating with the (lender) on your rental property, I'm not sure it would look at the situation very positively if it saw you were fully funding your IRAs.

(c) 2010, The Sacramento Bee (Sacramento, Calif.).

Distributed by McClatchy-Tribune Information Services.