Do not forget the real estate deductions in your tax return filings

There are not only tax deductions for the new home owners but also for the existing home owners as well as foreign nationals. Which kind of tax deductions you will get depends on your  personal situation and on your resident status.

As an US citizens you can deduct from your annual income the mortgage interests and the mortgage insurance costs as well as the local real estate property. These tax reliefs are not to underestimate and you will get a tax return quickly from the government when you have timely filed your taxes before April 15 deadline. These tax refunds are certainly welcomed by everybody and sweetens the monthly tax payments that come with the pay check.

The before mentioned tax reliefs do not apply for foreign nationals when they do not earn income that is taxable in the US. However, for the foreign nationals there is a tax deduction available when they sell their home to buy a bigger one or liquidate their assets.

The seller, in this case the foreign national has to pay FIRPTA – tax on the capital gain that he/she makes in the sale process. But this owed FIRPTA tax amount can be reduced by the improvement costs that were done in the property and the legal costs that are related to the real estate transaction.

When you want to get your FIRPTA taxes back completely or partial you as the foreign national seller have to file income taxes too in the following year after the sale of your home.

This information is only a quick and partial overview and you as the taxpayer should discuss your individual tax situation with a tax professional.

For questions about how to get your tax paperwork started please contact us at andrea@florida-informations.com

I want to sell the condo of my inherited condo

When I took that listing I thought that is an easy task. The market is good, the location is excellent and close to the beach. The unit is in good condition. Let’s move and we hoped to get the transaction closed within 30 days.

The public records of the property didn’t show any information that should rise a red flag. However, during the title examination we found out that the probate at the time of death of my customer’s father who was the former owner of the unit was not properly done. The father of my customer deceased in New York and the probate was done at the court in New York. During this probate proceedings my customer got papers that stated that she was the owner of the unit and she thought everything was okay.

Sadly the attorney who had done the probate case in New York forgot to file the probate case also in Florida. Because of this attorney’s mistake my customer had to retain a second probate attorney in Florida who did the missing filings. Such additional filings are a costly factor in a real estate transaction.

To prevent such a costly issue you should already at the purchase time decide if personal ownership is the best choice for you. There are better options to protect you of such a probate situation. To find out the best options for your specific situation the advice of a real estate attorney is the best protection.

Please contact us for further questions at andrea@florida-informations.com 

When is the best time to sell?

If you are right now in the decision-making process you might ask yourself: is now the right time to sell my house? Can my listing agent give me any advice? That’s a good question.

Several market studies on the internet show that the best listing time is spring season. In this season 38% of the listed properties are under contract within 30 days and 15% of these properties close with a higher sale price than the listing price. The worst season according to the studies is the fall. In that time of the year only 34% off the list of properties were sold within 30 days with an 11% higher sale price than listing price.

These numbers show that the differences are only marginal. Much more important is the location of the property and the actual property conditions. If your property is in a well-maintained and clean condition it will sell mostly above the asking price in the today’s market and it doesn’t matter when you list your property.

Second influencing factor is the overall real estate market condition. If many houses are in distress or facing foreclosure you will have a hard time to sell your house at your asking price because of the existing competition on the market.

In some geographic areas like Florida the season question will have an impact because we have in winter and spring the high tourist season and thousands of international buyers flood into the sunshine state. They are additional buyers for the listed properties.

For additional questions you can reach us at andrea@florida-informations.com

Affordable indoor updates that pay off at the sale

When you are thinking of selling your home because you need a bigger home or have to relocate due to your job, a little bit elbow grease can pay off at closing.

When you would like to get a good price for your home your first goal should be how to impress your future buyer without break the bank. There are easy things to do to achieve your goal and they do not cost only little money when you do it yourself.

You can start decluttering your home. You have to do it anyway when you move out therefore start this task as soon as you have made the decision to sell. That helps the potential buyer to feel at home right from the start.

Do some cosmetic updates in the kitchen and in the bathroom. That will also make a great impression. Fix dripping faucets or replace kitchen cabinet’s door knobs with new ones or the mirror in the bathroom.

Also a little bit painting with neutral colors in the kitchen or bathroom is an inexpensive option to boost your home value.

Last but not least do not forget to keep your yard nicely maintained, mow your lawn and cut the shrubbery and the potential home owners will stand in line to see your home and make you move.

For more updating tips send us an email at andrea@florida-informations.com