The Dreaded T words – Tax Time
The importance of taxes cannot be overstated. As Americans we are required by law to file our income taxes by April 15, extensions not withstanding. Taxes and Real Estate are inextricably linked, whether through the interest deductions you are allowed to claim on your income tax filing or through the annual Property and School taxes you are required to pay.
The Trump administration has made several changes to the tax code. The 2018 tax year will be the first year that we realize the impact of these changes. Due to the complexity of the new tax laws, and not unlike the complexity of buying and selling a home, for most of us these projects are best addressed with the help of a professional.
If you are planning to buy and or sell a home this year, whether you are a first time home buyer or you are resizing, it is a good idea to take care of your taxes sooner rather than later. The results of the new tax code could significantly affect your real estate plans. You may be entitled to a refund, which will help to cover some of the closing costs you can expect to incur. Or, if you did not put aside enough money to cover the change in the withholding requirement, you may be subject to a higher then expected tax payment. In either case you want to find out sooner rather than later.
When talking to your accountant or tax preparer, discuss with them your real estate plans, and have them explain how the new tax code will affect you before, during, and after the purchase and or sale of your home.
Once you have signed and filed your tax forms, call me and we will discuss the next steps to take to achieve your real estate goals.
Good luck with your taxes and I look forward to helping you with your real estate plans!