Recent News and Articles on the Keywords: fixer uppers + estate + real  Related to the article below (Last Update: 8/4/2008)

Boston Globe Clark Rockefeller returning to Hub for arraignment Boston Herald, United States - He used that access to pose as a real estate mogul eight weeks ago when he bought Harry Boswell?s ?fixer-upper? catamaran for $7000, punching in the ... CBS FBI busts Rockefeller Boston Herald all 2,562 news articles » Smarmy agents sell mostly ego on ?Million Dollar Listing? Boston Herald, United States - I have a gorgeous girlfriend because image is everything in real estate,? Rogers says, speaking with a flat effect you might associate with the heavily ... Cool housing market spurs unconventional means IdahoStatesman.com, ID - Aug 3, 2008 Sometimes he sells it as a fixer-upper to a contractor investing in real estate, or to someone wanting to acquired distressed properties. ... New York Times Reluctant Renovators New York Times, United States - Jul 25, 2008 ... apartment on the market,? said Klara Madlin, president of Klara Madlin Real Estate in Manhattan. ?You can?t really find those good fixer-uppers anymore. ... Realitywanted BRAVO DELIVERS A HIGH DOSE OF REAL ESTATE DRAMA ON 'MILLION DOLLAR ... Realitywanted, AZ - Jul 31, 2008 In the premiere episode, Josh tries to persuade his pal, Dr. Sam, to buy a fixer-upper with huge profit potential, but it puts a strain on their friendship. ... Sunday Real Estate Round-Up, 7/20/08 Luxist, CA - Jul 20, 2008 It was recently our estate of the day. --The Beverly Hills fixer upper belonging to real estate agent Kevin Huvane was almost snapped up by nightlife king ... San Diego Union Tribune Foreclosures ravage parts of county where many used risky loans San Diego Union Tribune, United States - Jul 20, 2008 Several real estate agents who specialize in the sale of foreclosure properties say they are getting more interest from investors looking to buy homes ... Chicago Daily Herald Desperate measure for desperate suburban home seller Chicago Daily Herald, IL - Aug 1, 2008 Olander and her husband Joshua Kalfus, who owns a roof repair company, have bought and sold a dozen or so fixer-uppers. They've done a lot of the work ... Eureka! And then what? Creative Loafing Tampa, FL - Jul 30, 2008 But on a night when I was taking Phil to check out a reasonably priced fixer-upper I'd already seen, one that seemed like it had real potential, ... How to beat your bank manager Realestateweb.co.za, South Africa - Aug 1, 2008 Many new property owners are scrambling to find cash, not only to repair those fixer-uppers they bought in better areas rather than settling for second-best ...

Real estate fixer-uppers create tax-free business

But 2-year property commitment a minimum requirement

DEAR BOB: I read your articles religiously every week. If I understand your explanation of Internal Revenue Code 121 correctly, can I buy a house or condo, live in it at least 24 months, fix it up to increase its market value, and then sell it for a tax-free profit up to $250,000? If my understanding is correct, why don't individuals make a tax-free business out of buying fixer-upper houses, living in them for 24 months, and then selling at a tax-free profit after repairing them? What is the "catch?"– Roth R.

DEAR ROTH: You understand Internal Revenue Code 121 extremely well. There is no "catch."

To qualify for this great tax exemption, you must own and occupy your principal residence an "aggregate" two of the five years before its sale. A single homeowner can qualify for up to $250,000 tax-free home sale profits. But a qualified married couple can claim up to $500,000 tax-free sales profits.

Many homeowners have caught on to the great tax benefits of IRC 121. However, the major drawback is you must occupy the principal residence at least 24 months before its sale. For many homeowners, it is a serious obstacle to live in their home while it is being extensively fixed up. For more details, please consult your tax adviser.

HOW UNCLE SAM TAXES DEPRECIAITON DEDUCTIONS

DEAR BOB: Since 1990 I have maintained a home office for my insurance business. Each year on my income tax returns I deduct depreciation for my home office, which is located in my den. If I sell my home, how can I avoid paying tax on my depreciation? – Ben R.

DEAR BEN: In the 1997 Tax Act, Uncle Sam began "recapturing" depreciation deducted after May 6, 1997 at a special 25 percent tax rate. Even when your principal residence capital gain is tax exempt upon sale because it is below $250,000 (or $500,000 for a qualified married couple), Uncle Sam will "recapture" your depreciation deducted and tax it at the 25 percent tax rate. For more details, please consult your tax adviser.

DOES TENANT-IN-COMMON PROPERTY GO TO SURVIVING CO-OWNER?

DEAR BOB: My sister and I invested in a rental house together as tenants in common. During the 14 years we owned it, the market value increased more than $150,000. However, she died a few months ago of leukemia at age 36. She left no will. How do I clear the title into my name? – Brett W.

DEAR BRETT: If your sister died intestate without a will, you won't automatically inherit her half of that house to which you held title as tenants in common. Had she left a will, her half would have passed according to the terms of that will. However, if you held title as joint tenants with right of survivorship, you would have received title to the house without the necessity of probate.

Since your sister died without a will, the state determines who receives her half of the house. You should consult a local probate attorney to determine if you are your sister's closest living relative entitled to inherit her property.

Your situation shows why it is so important for everyone to leave a will.