Home Income Tax Issues – Quick Intro

HOME INCOME TAX ISSUES

Introduction.

The major tax planning issues to be addressed are when and how a client can plan the selling and buying of a personal residence, and how he can finance the acquisition or ownership in a manner that will result in the most favorable tax consequences while still meeting the client’s objectives.  Some of the rules regarding these issues include the following:

• The deductible expenses related to financing a house (house mortgage interest).
• Property tax deduction.
• The exclusion of $250,000/$500,000 gain on the sale of the house.
• The deductibility of certain expenses related to moving to a new residence where the move is work related.
• Special tax breaks enacted to address the sub-prime housing problems, including rules for clients losing a home in foreclosure or otherwise, deductions, credits, etc.

Some of these issues are elsewhere in this website. Bear in mind that a host of new tax, other home ownership and “help” provisions have, and will be enacted that are not reflected in this website at this time.