Tax Benefits of Owning Real Estate

Deductions on Mortgages and Property Taxes

If you own a property, regardless of how you acquired it, you can directly deduct the interest you pay on your mortgages to up to $1 million on both first hand and second hand mortgages. In addition, if you still have home equity debt, you can get deductions for up to $100,000 or whatever is the difference between your home’s value in reference to the current state of the housing market and the amount you still owe on your mortgage.

The property taxes are deductible too if you did energy saving renovations on your property like insulation; and if it contains any of these add-ons streets, sidewalks, and water or sewer systems.

Tax Credits on Energy Saving Renovations

Depending on the ruling in your state, tax credits are also available for energy-saving renovations. Such renovations include insulation that complies with the standards set by your local energy board and the use of non-renewable sources of energy like solar-powered heating systems. In order to be eligible for such tax credits, you will need to have your home assessed prior to the submission of the correct tax form.

Exemptions from Paying Capital Gains

When you sale your primary residence, you can make up to $250,000 in profit if you're a single owner, twice that if you're married, and not owe any capital gains taxes.

Even better, there's no limit on the number of times you can use the home-sale exemption. In most cases, you can make tax-free profits of $250,000 (or $500,000 depending on your filing status) every time you sell a home.

Further, one of provisions of the tax code also dictates that you may be saved from incurring capital gains if you exchange your property with another piece of land. These deductions help lighten your monthly expenses on mortgage, insurance and utility bills. And if you’re using your real estate property for rental use, you will also have additional earnings through your rental income. Which, can be an excellent return on your investment!

Las Vegas Cash Flow Real Estate

Cash flow is one of the most important considerations investors face when making real estate purchases, especially now that so many markets across the country are struggling. Investors seeking high-income property should take cash flow into account first and foremost when deciding whether or not to buy.

Cash flow refers to the amount of cash coming in relative to the amount going out. While appreciation is often the most significant form of profit for real estate investors, cash flow is easier to determine and lower risk.

Although many elements combine to influence cash flow, one of the most important ones is the surrounding market. Areas with lower home prices are more likely to have positive cash flow.  Las Vegas real estate is a tremendous opportunity for real estate investors right now.  Property values have plummeted since the peak of the market in 2007.  The rental market is strong and rental rates more than align with property prices in the area.  Only in the Las Vegas real estate market do you have the ability for short term monthly cash flow with the probability of long term appreciation.

As we know the economic down turn has impacted most of the country and the world.  Because of this there are many opportunities in the US for real estate investment.  The place that makes the most sense is Las Vegas.  The housing market hit Las Vegas the hardest.  Along with historical data on the real estate market in Las Vegas, I believe there is an incredible opportunity in the Las Vegas market.

Short Sale Basics

A real estate short sale occurs when a home is sold for less than is owed on it. Because the lender is being asked to accept a loss on their investment, they take a role in determining the sales price of the home. A successful short sale transaction requires experience, patience, and the ability to find solutions if problems arise during escrow period.

As your short sale specialist, I'll:

Ø  Determine the requirements of your lender to approve your short sale.

Ø  Facilitate the submission of the required documents from you to the lender, including a "hardship letter" which speaks to changes in your income and or/expenses. 

Ø  Determine a listing price for your home, and diligently market it for sale.

Ø  Communicate regularly with your mortgage lender's short sale negotiator to work towards a selling price that they will agree to.

Contact me for a FREE confidential Real Estate consultation.

Adorable 3BD, 2BA Home for Rent in Silverado Ranch!

Silverado Ranch, Las Vegas  -  Announcing a rent/lease reduction on 10576 Pueblo Springs St, a 1,422 sq. ft., 2 bath, 3 bdrm 2 story. Now $995 USD Monthly - Reduced!.
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Immaculate 3BD, Plus Office, 3BA Home for Rent in Seven Hills, Henderson, Nevada

Las Vegas, Clark County  -  Announcing a rent/lease reduction on 1344 MEANDERING HILLS DR, a 2,128 sq. ft., 3 bath, 3 bdrm single story. Now MLS® $2,200 USD Monthly - Reduced!.
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Single Story For Rent in Anthem, Henderson, Nevada

• 2,266 sq. ft., 3 bath, 4 bdrm single story - $1,795 USD Monthly

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Short Sale-HAFA (Home Affordable Foreclosure Alternative Program)

• Home Affordable Foreclosure Alternatives Program: Overview
  The Home Affordable Foreclosure Alternatives (HAFA) Program provides additional options to avoid costly foreclosures and offers incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid foreclosures.
  HAFA alternatives are available to all HAMP-eligible borrowers who:
  1. do not qualify for a Trial Period Plan;
  2. do not successfully complete a Trial Period Plan;
  3. miss at least two consecutive payment during a HAMP modification; or,
  4. request a short sale or deed-in-lieu.
  
  
  In a short sale, the servicer allows the borrower to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage. Generally, if the borrower makes a good faith effort to sell the property but is not successful, a servicer may consider a DIL. With a DIL, the borrower voluntarily transfers ownership of the property to the servicer - provided title is free and clear of mortgages, liens and encumbrances. With either the HAFA short sale or DIL, the servicer may not require a cash contribution or promissory note from the borrower and must forfeit the ability to pursue a deficiency judgment against the borrower.
  HAFA simplifies and streamlines the short sale and DIL process by providing a standard process flow, minimum performance timeframes and standard documentation.

A. Short and simple all you need to know about the HAFA short sale program -

1. Homeowners who qualify for a HAFA short sale are fully released from future liability for the first mortgage debt. This means that the mortgage lender cannot come after the homeowner at any future time for repayment of the original loan.

2. A HAFA short sale allows for a $3,000 relocation assistance payment for homeowners. That's a one-time payment of up to $3,000 to help sellers with moving costs, rent security costs, etc.

3. Most major lenders are already on board with the new HAFA rules, including Citibank, Wells Fargo, Bank of America, Wachovia, Chase, , and the list continues to grow.