What You Need to Know: Capital Gains Tax

by Katie on June 19, 2013

A common question for sellers is if they will owe capital gains tax when they sell their home. The answer to that question: it depends. The capital gains tax law known as the Taxpayer Relief Act went into effect in 1997 but there is still a lot confusion over who pays what and why.

If you sell your home you will not have to pay capital gains tax if:

  • You are selling your personal residence.
  • You have $250,000 in profit or less if you are single and $500,000 if married.
  • You have lived in your home for two of the last five years.
  • The home is not an investment property.

The capital gains exclusion can be used as many times as you like as long as it meets all of the above criteria.

If you are going to make more than $250,000/$500,000 in profit you will be taxed at a 20% capital gains tax rate on the amount over the $250,000/$500,000 threshold.

There are exceptions to the rule. You may be eligible for a tax break if:

  • You need to sell your home because a change in health.
  • You need to sell your home because of a long distance relocation.
  • You are in the armed services and moved to fulfill your service commitments.

Your individual tax situation may be different, so make sure to consult a qualified tax accountant or attorney.

 

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Predicting Mortgage Rates

by Katie on June 12, 2013

It is almost impossible to predict the future and predicting where mortgage rates may go can be difficult too. But if you know how to watch the indicators you will have some degree of advantage. It may help you decide whether to borrow funds or wait until rates drop.

Consider that with any prediction there can always be a great deal of margin of error. Here are a few things to consider to make a more reliable mortgage rate prediction:

History

History can always be a good predictor. What is the economic climate? If rates are high in economic down times that you should predict that rates will rise when the same crisis hits the market.

Look not only to long-term history but also to rates recent history. Watch for the changes carefully, track them by the month. Factors to consider are: Are the rates going up or down? What factors are causing them to behave in such a way?

Influencing Factors

Factors that influence mortgage rates can be controlled by you. One of those factors is the amount of down payment you have or if refinancing the amount of equity you have in the home. Also for consideration on the rate you will receive is your debt to income ratio and your credit score. Some factors you cannot influence include the state of the real estate market, the inflation rate and the funds available for consumers.

Inflation

Inflation drives most everything and always is a constant consideration of the mortgage interest. If inflation is higher, the interest rate will go up as well. Conversely, if inflation is low rates do down.

Credit Availability

How much credit is available? If limited funds are available than mortgage interest rates will be higher.

The Bottom Line

The bottom line is you have to be flexible. You can never predict what the exact mortgage rate will be. Instead, look to the factors that influence rates. This will give you an idea of where rates are and a better picture of if it is the right time for you to take on a mortgage.

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Town of Mendon, MA – Homes Sold in the Past Month

June 6, 2013
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Tweet In the community of Mendon, MA in the past month, there have been 4 homes sold.  The average sale price of these homes was $368,750, and the homes were on the market an average of 44 days.  There have been 11 homes listed for sale during the past month in Mendon, MA. We are here [...]

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Ways to Save Energy and Money

June 5, 2013

Tweet Did you know the average family spends over $1600 a year on utility bills alone?   Here are some simple steps you can take to not only save energy but also put some money back in your pocket. Put your thermostat to work The U.S. Department of Energy (DOE) recommends setting your air conditioner at [...]

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Single-Family – Hopkinton, MA 01748 is now new to the market!

June 4, 2013

Tweet A great condo alternative in desirable Hopkinton. Cute as a button ranch with a bungalow feel on .69 acre wooded lot. Kitchen with island and sink, master bedroom with half bath ensuite and walk in closet, full basement, two car detatched garage, 1.5 bathrooms, sun room with hardwood floors, fieldstone fireplaced cathedral living room, [...]

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What You Need to Know: Before You Hire a Mover

May 29, 2013

Tweet The real estate market is on the move and people are moving. Finding a mover that you can trust with your possessions can be a difficult task. Here is what you need to know when looking to hire a mover and have a worry-free move: 1. Make a list Make a complete list of what [...]

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Single-Family – Hopkinton, MA 01748 is now new to the market!

May 23, 2013

Tweet New construction on a beautiful country road in desirable Hopkinton. This home is up and can be ready in 60 days. Move in and enjoy the summer nestled on gorgeous lot with views of pond across the street and cranberry bogs behind the back yard. Quality construction with mahogany farmer’s porch and many amenities [...]

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How to Be a Better Recycler

May 22, 2013

Tweet More and more people today are recycling. In fact, about three-quarters of people in the U.S. recycle but most don’t know how to properly recycle. Here are some great tips on how to be a smart recycler: 1. Remove the twist-off cap and ring from plastic bottles. The twist of off cap and ring [...]

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Mendon, MA Greyhound Rescue of N.E. Yard Sale June 8 & 9

May 20, 2013

Tweet  Greyhound Rescue of N.E. is a small non-profit organization dedicated to finding homes for retired racing Greyhounds when their careers have ended. They have saved close to 800 dogs over the last 14 years and continue to work hard to save even more. They are now taking in dogs from the remaining 13 tracks [...]

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Another Property Sold in Hopkinton, MA

May 19, 2013

Tweet Hopkinton, MA: This Single-Family in Hopkinton, MA recently sold for $667,500. This is a Colonial style home and features 9 total rooms, 2 full baths, 1 half bath, 4 bedrooms, 1.04 acres, and was sold by Katie McBride – RE/MAX Executive Realty Here are some other properties available in Hopkinton,MA you may like: Hopkinton$624,900Hopkinton$621,280Hopkinton$629,900Hopkinton$674,900

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