Category Archives: Property

Inherited House

Today TaxMama hears from Don in Texas who tells us, “My brother and I inherited a house in 2004 from my aunt. Neither of us have ever lived in the house, nor have we rented it out. We sold the house in 2007 for $10K less that the FMV upon the death of my aunt. […]

Special Web Section for Homeowners Who Lose Homes; Foreclosure Tax Relief Available to Many

Courtesy of IRS IR-2007-159, Sept. 17, 2007 [TaxMama note: This is a resource we requested from IRS at a Stakeholder meeting earlier this year. IRS put it together quickly, in view of all the sub-prime loan defaults. Incidentally, you will also find some simplistic formulae to help with your computations of the tax effects.] WASHINGTON […]

Selling Your Home

Courtesy of IRS – STT-2007-22 During summer months many people sell their home and move to a new location. Many of those individuals will make a profit on the sale and still will not have to pay a single dime of additional income tax to the IRS. Generally, you have made a profit if the […]

Sales Tax on Lot

Today TaxMama hears from April in NJ who has this question. “We plan to buy a lot from our friend. We are buying it for $150,000. Do we just pay him the $150,000? Or do we have to add our state’s 7% sales tax on to the price?”

Parents Property Exempt

Today TaxMama hears from Vivian in California who asks. “How do I get my parents property exempted from taxes? They are both retired & on Social Security. My dad has been on disability for years.”

Clergy Home Building

Today TaxMama hears from the Minister’s wife in Kentucky, who tells us, “My husband’s housing allowance is exempt from taxes. We are currently building a home, while temporarily living with relatives until its completion. Will we be able to deduct any of the expenses from the construction of this new home? For example, we’re already […]

Like-Kind Exchange Rules Do Not Apply to Vacation Homes

By David & Mary Mellem, EAs Mr. & Mrs. Moore purchased real estate (vacation home) in 1988. This property was located approximately 3 hours from their principal residence. About 1996 they changed their principal residence to another city in the opposite direction from the vacation home. Due to the longer travel to get to the […]

What’s Wrong with the “New” Missed Fortune 101?

Free Webinar Who: Roccy DeFrancesco, JD, CWPP™, CAPP™, Founder of The Wealth Preservation Institute What: What’s Wrong with Missed Fortune 101 and Learning Equity Harvesting the “Correct” Way When: July 11, 2007 3:00 pm EST. Register: send email to with WEBINAR in the subject line What’s Wrong with the “New” Missed Fortune 101? (aka, […]

Building a 1031 Exchange

Hi! It’s TaxQuips time from Today TaxMama hears from Sandy in Alabama who tells us. “I want to sell a rental house via a Sec 1031 exchange. Then I want to use the money, which will be in my attorney’s account, to add on to another rental house and/or build another rental house. Of […]

Sub-Divide Personal Residence

Today TaxMama hears from Scott in Connecticut who tells us. “I have a primary residence which I have occupied for more than 2 years. I‘d like to divide the property and sell some of it. How will the proceeds be treated from a tax standpoint?”

1031 Exchange

Today TaxMama hears from Gaetano in the Tax Parlor, who asks “When you do a section 1031 exchange for investment real estate are you “required” to use a qualified intermediary to receive the funds from the sale of the first property or is this just an advisory to make sure you do the exchange within […]