Understanding Property Taxes
Posted by admin in Law and Tax
Property tax increases are a popular method used by municipal and county governments to raise revenue, but they can also have a big impact on the local real estate market. For example, a slight tax increase may drive demand for local homes down, a shift many might characterize as “negative”. But a clear understanding of local market conditions can help real estate professionals, buyers, and sellers take advantage of any new tax scenario and get the most for their property investment. Read the rest of this entry »
“Illegal” Flipping & Lender Seasoning
Posted by admin in Law and Tax
There has been a lot of negative press and misinformation lately about double–closings. Many people have been indicted recently under what the press has labeled “Property Flipping Scams.” Misinformed lenders, real estate agents and title companies will tell you that double–closings are now illegal. In fact, they are nothing of the sort. Read the rest of this entry »
House Flipping Laws: Are Real Estate Investors Guilty?
Posted by admin in Law and Tax
Flipping a house, or reselling a property quickly after purchasing, isn’t illegal. Because so many house flippers committed mortgage fraud or used predatory lending practices, HUD, the U.S. Department of Housing and Urban Development, is trying to protect home buyers. HUD also seeks to halt appraisals at inflated prices. The agency believes that house flippers artificially inflated prices. Read the rest of this entry »
Flipping and Capital Gains
Posted by admin in Law and Tax
A common dilemma for real estate investors is the issue of flipping and taxes. In this article, we look specifically at the tax issues associated with flipping and capital gains.
In recent years, people have been looking at the real estate market as they once looked at the stock market, eyes filled with dollar signs. Flipping became a popular real estate investment strategy to make fast cash. However, one thing that people forgot in their haste to play the game was to be properly prepared with the knowledge to avoid paying high taxes on their profits. Towards that end, here’s some noteworthy information about taxes as you think about your flipping strategy. Read the rest of this entry »
FHA Regulations Aim to Stop Flipping Schemes
Posted by admin in Law and Tax
The FHA has proposed and adopted new regulations that will control illegal property flipping schemes.
Not all property flipping is a crime, but when documents are falsified, it becomes criminal fraud. In most flipping schemes, false appraisals are made and unqualified homebuyers are provided with false data. The flipper walks away with the equity, while FHA is left with a house not worth the mortgage. Read the rest of this entry »
Tax Consequences of Flipping Real Estate
Posted by admin in Law and Tax
If you’re looking to turn a quick buck on a real-estate transaction, accountant Bill Rucci has some words of warning: “It may be quick, but it also may not be as lucrative as you first thought.”As housing prices in many parts of the United States skyrocketed, “flipping” — buying a property and then quickly reselling it at a higher price — has become the hottest investment trend. Read the rest of this entry »