Residential Real Estate:
The following are several insights into taxes when buying and selling a home.
- The IRS can't sell your house without giving you proper notice. The sooner you speak with the IRS or hire a lawyer to do so, the better chance you have at saving your home.
- If a mortgaged property is sold, the amount realized is the net purchase price, whether or not the seller gets any of it. Borrowing money is not taxable.
- The affect of refinancing your home on your income taxes depends on the situation. The interest paid on your mortgage can be deductible from your taxable income if you itemize deductions for the purpose of federal income taxes.