Archive for February, 2011

Three Bedroom Prattville Homes for Sale Under $200,000 in the Daniel Pratt Elementary School District

Friday, February 11th, 2011

Three Bedroom Prattville Homes for Sale Under $200,000 in the Daniel Pratt Elementary School District

 

     For military buyers who are relocating to Maxwell AFB and Gunter Annex in Prattville, Montgomery, and the River Region, finding reasonably-priced homes for sale in Prattville is important.  It can be hard to sift through so many houses on market, and many military buyers want to find nice, reasonably-priced homes near Maxwell AFB and Gunter Annex within the popular Daniel Pratt Elementary school district.

 

     Prattville is about a 20 minute drive from both Maxwell AFB and Gunter Annex.  That makes for a nice, easy commute on work days.  Many military buyers are making the decision to live in Prattville.  And being able to find several three bedroom Prattville homes for sale under $200,000 in the Daniel Pratt Elementary school district to choose from makes Prattville even more attractive.

 

     To make it easy for military buyers or anyone else to quickly find three bedroom Prattvile homes for sale under Easy as pie to search for homes for sale in Prattville$200,000 in the Daniel Pratt Elementary school district, I’ve created a simple page on our website that makes searching for these homes for sale as easy as pie.  All of the listed three bedroom Prattville homes for sale under $200,000 in the Daniel Pratt Elementary school district are shown on the page.  You don’t even have to search for them.  They’re right there.  The listings are updated constantly, so you can bookmark the page and come back to it as often as you like.  Easy as pie!

 

Click here to search for three bedroom Prattville homes for sale under $200,000 in the Daniel Pratt Elementary school district.

 

     If you want to see more houses on the market in different price ranges or in different areas, you can search for homes for sale in Prattville on our website.

 

Three Bedroom Prattville Homes for Sale Under $200,000 in the Daniel Pratt Elementary School District

Do I Have to Pay a Real Estate Tax On My New Home In Prattville Alabama? Part 2

Thursday, February 10th, 2011

Do I Have to Pay a Real Estate Tax On My New Home In Prattville Alabama? Part 2

 

In yesterday’s blog, we talked about the new Federal 3.8% Medicare tax on the capitol gains you make when you sell your home in Prattville, Montgomery, and the River Region, AL, and we used an example to see how the tax is calculated.  Then we asked what happens if the amount of capitol gains (profit) you make when you sell your home is over the $250,000 limit ($500,000 for married couples)?

That’s where another rule, the income limit, applies.  The law says this new Federal Medicare tax only applies to people IRS real estate tax in Prattville ALwhose AGI (adjusted gross income) is more than $200,000 per year ($250,000 for married couples). So if you sell your house and make a profit of more than $250,000, then you need to look at your income to see if you’ll have to pay the tax.  As long as your AGI, including the capitol gain you made when you sold your house, is at or under $200,000 ($250,000 for couples) then you won’t have to pay the tax.  Let’s look at an example:

Let’s say when you sell your house you make a capitol gain of $300,000.  This capitol gain is $50,000 more than the limit according to the law from yesterday’s post.  But you still might not have to pay the Medicare tax because the law allows you to keep $250,000 of the capitol gain without paying any tax on it.  So the other $50,000 profit you made gets counted as part of your AGI.  As long as your AGI, including the profit you made on selling your home, is $200,000 or less that year, you won’t have to pay the tax.

So let’s continue with the example we used above and start with the $50,000 amount of excess capitol gain you made when you sold your house.  Add this amount to your AGI.  If your AGI plus the excess capitol gain totals more than $200,000 then you will have to pay the tax, but only on any part that is over the AGI limit.  If your AGI plus the excess capitol gain totals $200,000 or less, then you won’t have to pay the real estate tax.  It’s that simple.  Consult your accountant or tax preparer for advice specific to you and your situation.

The new Federal Medicare tax on capitol gains from selling a home don’t go into effect until January 1, 2013.  And you’ll still be able to deduct your mortgage interest every year on your income taxes like you have previously been able to.

That nasty rumor about everyone having to pay a real estate tax when they sell their home really scared a lot of people.  But now, looking at some examples of how the new law applies, you can see that the new Federal real estate tax on excess capitol gains from the sale of a home is really not so scary after all.

Why would a real estate agent who works only for buyers write a blog about something that might happen when you sell your home?  The answer is simple.  When you buy a home for sale in Prattville, Montgomery, and the River Region, AL, you think about what might happen in the future when you sell your house.  Remember that as Guaranteed Buyer’s Agents, we help you buy smart so you can make a bigger profit when you sell your home later.

 

Do I Have to Pay a Real Estate Tax On My New Home In Prattville Alabama? Part 2

 

 

 

Do I Have to Pay a Real Estate Tax On My New Home In Prattville Alabama? Part 1

Wednesday, February 9th, 2011

Do I Have to Pay a Real Estate Tax On My New Home In Prattville Alabama? Part 1

 

There’s a nasty rumor going around out there.  Recently someone started a rumor that soon every home owner will have to pay a real estate tax when they sell a home in Prattville, Montgomery, or the River Region, AL.  They claim that this real estate tax was hidden within the Federal health care bill.  They even called it a “sales tax.”

But it’s not true.  At least, not the way the rumor told it.  While it is true that there is a 3.8% Medicare tax that high income households MIGHT have to pay when they sell real estate, it only applies to people whose income and proceeds from the sale of their house are over the limits that already exist.  There are two tests that will apply.  The first is the capitol gains test, which looks at how much capitol gain (profit) you make when you sell your home.  The second test is an income test, and we’ll talk about that next time.

All of this might sound a little confusing, so let’s look at an example.

Right now, individual people who sell their homes don’t have to pay any tax on the capitol gains (or, in other words, the profit they make on selling their home) as long as the amount of the capitol gain is less than $250,000.  For married couples, the limit is $500,000.  So let’s say you bought your house 10 years ago and paid $100,000.  Let’s say that you want to sell it now, and that you are willing to pay 3% of the price toward closing costs and 6% of the price toward real estate commissions (real estate commissions and the terms of the contract are all negotiable are aren’t set by law). So if you sell this house you bought 10 years ago for $384,615 or less, you won’t have to pay the tax.  Here’s why:

Start with the sellPrattville & Montgomery Capitol Gains Taxing price of $384,615 and subtract the amount you have agreed to pay for closing costs.  Then subtract the amount you agreed to pay for real estate commissions.  This leaves $350,000.  Don’t forget to subtract the price you paid for your house 10 years ago, which is $100,000.  So after everything is subtracted, in our example you made a profit (or a capitol gain) of $250,000 when you sold your home.  Since the capitol gain you made is $250,000 or less, this means you won’t have to pay the new Federal 3.8% Medicare tax on the profit you made. Remember, these numbers are just an example. Your numbers may be different.

So what happens if you make a capitol gain MORE than $250,000 when you sell your house? We’ll cover that in the next post, “Do I Have to Pay a Real Estate Tax On My New Home In Prattville Alabama? – Part 2.”

 

 

Do I Have to Pay a Real Estate Tax On My New Home In Prattville Alabama? Part 1