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Inheriting a House and the Taxes You Need to Know About.

by bchandler on 8:49 pm

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Inheriting a House and the Taxes You Need to Know About.

 

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You just inherited a house, and you’re deciding to either sell the house or move into the place. Well, before you decide anything, you should hear about all the taxes that you might have to pay. Depending on your state, this could mean inheritance tax, and possibly capital gains tax. But don’t worry, knowing what to expect is half the battle. To find out which of these taxes apply to you, keep reading!

Inheritance Tax

The first thing you need to know about inheritance tax, it’s completely different from an estate tax. It’s extremely important to know the difference because the two terms are often used interchangeably. But don’t be fooled! These taxes are NOT the same thing. Inheritance tax is a tax that a person pays when they receive an inheritance. An estate tax is a tax that is paid with funds found within an estate. Many people get these two confused is that they consider a house to be an estate. When in reality, a house is only part of an estate. An estate is everything a person solely owned before passing away. This can include cars, money, antiques, life insurance and more.

Now that you know the difference between inheritance tax and estate tax, it’s important to know when inheritance tax applies to you. If you’re inheriting a house from a deceased person, you have to check if your particular state has an inheritance tax.

For example, states like Washington D.C. and Virginia don’t have an inheritance tax, but Maryland has a 10% tax on inheritance. If you live in a state with inheritance tax, don’t worry just yet. You could be exempt from paying inheritance tax. In Maryland, for example, immediate family members of the deceased person and certain non-profits are exempt from inheritance tax. So make sure to check your specific state laws and check to see if your state has any exemptions.

Capital Gains Tax

If you just inherited a house and want to sell it, you may have to worry about capital gains tax. This is a tax that occurs if you sell an inherited property, without living in it for at least 2 of the last 5 years. If you have lived in the property for more than two years in the past 5 years, you can be exempt from capital gains tax up to a certain amount. If you are single, the amount is $250,000. If you are married, the amount is $500,000.

But how do you know how much tax you pay? Well, there’s a formula.

(Sale Price) – (Fair Market Value of the House at the Date of the Owners Death) 

  • If the number is positive, then you pay capital gains tax on that amount.
  • If the number is negative, then a capital loss can be claimed on your taxes and $1.5 thousand of that can be deducted from your income taxes ($3 thousand if filing with a spouse).

Here are two examples:

Sarah inherits Brad’s house. She has the home appraised, and it’s found to be worth $600 thousand. Sarah then sells the house 2 months later for $605 thousand. Sarah then pays capital gains tax on the $5 thousand ($605 thousand-$600 thousand).

OR

Sarah inherits Brad’s house. She has the home appraised, and it’s found to be worth $600 thousand. Sarah then sells the house 2 months later for $550 thousand. Sarah then claims a capital loss of  $50 thousand ($550 thousand- $600 thousand). Sarah is not married and therefore deducts $1.5 thousand from her income taxes.

*Here’s a http">Capital Gains Calculator to make things a little easier for you.*

Selling Your House

If you’re thinking of selling your inherited house, call https">Express Homebuyers to receive a fair cash offer in minutes! And once we make a deal, we’ll also provide you with a free probate attorney to help you through the entire probate process. Call us today to find out more information!

DISCLAIMER: State and Federal tax laws change on a frequent basis. As a result, the following information may not reflect current tax laws and is in no way a substitute for legal advice. For tax or legal advice, please consult with an accountant or attorney.

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Categories: Baltimore Real Estate, Inheritance, Probate, Sell a Home, Sell Your House Fast

Alternatives for a Fresh Start

by bchandler on 1:14 pm

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Alternatives for a Fresh Start

 

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If you are in financial distress and fear you will lose your home, you may feel frustrated and hopeless.  Some of the alternatives presented to you may seem pretty much the same: you will lose your home. You can do a short sale, let the bank foreclose, or file bankruptcy.  Your choices may have the same import as waiters on the Titanic asking diners sitting in water to their waists if they preferred coffee or tea.

Being in this situation is not what you anticipated when you scraped and saved for your home. However, if you can adopt the philosophy that homes and material things are replaceable, you can get through the situation and aim for a fresh start.  Short sales, foreclosure, or  bankruptcy can provide this. What you should aim for is the solution that has the smallest long term impact on your credit score and the greatest chance for you to move onto the next step with dignity.

Preserving your credit score is important. Not only is a good credit score necessary to get future credit and get it at a decent rate, it may impact your ability to rent or buy a house, get insurance, and even get a job. If you fall on hard times, you will take an inevitable hit.  Your concern should be with preserving your score as best you can. The means that in order of the least damage to your credit, it is short sale, foreclosure, and bankruptcy.

Short sale: If your home’s value is not enough to pay off the mortgage, you could ask your lender to authorize a short sale where you can sell the home for less than you owe.  This approach saves the lender time and money compared to a foreclosure and allows you have more time to plan your nest move as the process takes a while. You will lose 80 to 100 points on your credit request, but within 18 months the impact on your score should lessen.

Foreclosure: When the bank takes your home, you lose 200 to 300 points on score and can’t buy another home for at least three years.  Given the large numbers of foreclosures these days, foreclosure might have a relatively small social stigma and economic impact over time.

Bankruptcy: Bankruptcy will remove your debts or allow you to repay them over time, depending on whether you file Chapter 7 or 13 bankruptcy.  The number of points you lose depends on what your credit score was before you filed, but the event will stay on your record from 7 to 10 years. Despite the effect on your credit rating, this may still be the best choice if you are burdened down with a lot of other debts besides your mortgage.

Any of these methods can offer a fresh start to you if you are in trouble. If you want to sell your home now, Express Home Buyers can offer exciting alternatives. Whether you are in financial trouble, face foreclosure, have a property that needs a lot of work, or have an inherited house, we can sell your house fast. Because with us, it’s Guaranteed2Sell.

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6564 Loisdale Court, Suite 315
Springfield, VA 22150
Phone: (877) 804-5252
Email: express@expresshomebuyers.com

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Categories: Bankruptcy, Distressed Property, Foreclosure, Inheritance, Probate, Sell Your House Fast Tags: auction, avoid foreclosure, behind mortgage payments, buy my house, expresshomebuyers.com

A RESPONSE TO RECENT BLOGS…

by bchandler on 8:44 am

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A RESPONSE TO RECENT BLOGS…

 

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Recently, a blog on our work at Illinois Avenue caught our eye, and we posted this response (You can read the original at http" target="_blank" rel="noopener noreferrer">Concrete Jungle). Our response is listed here:

“Thanks for your post. We are always happy to clarify our business.

Couple of things. First, it’s easy to take the hard numbers at the beginning and end of a transaction and question the spread and the profit – particularly if one wants to question the profit makers. It is true express Homebuyers purchased the Illinois Avenue property shown here for $150,000, a price we determined after investigating the overall condition of the property, and what it would take to renovate it to our standards—which are top-of-the-market.

In terms of this property, we judged the total cost to renovate it to our standards could be well over $125 to $150 thousand dollars. Just this alone would justify a price equal to similar properties in the neighborhood. Atop our costs of renovation we have to add marketing, listing, commission for agents and a host of other small costs that whittle away the remaining margin.

Finally, the $374,955 is the asking price. It would be ideal if it sells for that, but like all other properties, our listed price survives or dies at the very real hands of the market.

Secondly, we don’t necessarily favor the term “flipping” when it comes to our work. House flippers notoriously buy properties cheap, perform minimal—if any –repair, and try to sell the property as quickly as they can. Our mission remains to add value to all the properties we sell and, in the process, help the individuals who need to sell their properties get a quick solution.

Harold, Express Homebuyers”

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Express Homebuyers

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6564 Loisdale Court, Suite 315
Springfield, VA 22150
Phone: (877) 804-5252
Email: express@expresshomebuyers.com

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Categories: Distressed Property, Foreclosure, Probate, Sell Your House Fast Tags: avoid foreclosure, Bankruptcy, buy my home, buy my house, express home buyers, express homebuyers, expresshomebuyers.com, Foreclosure, Home Downsizing, home for sale, homes for sale in maryland, homes for sale in virginia, save home in foreclosure, Sell home, sell home quick cash, sell house fast, sell house foreclosure, sell my home fast, sell my home quick, sell my house, sell my house now, sell my house quick, sell your house, sell2us, we buy homes, we buy house, we buy houses, www.expresshomebuyers.com 0

Sell Your House Fast. Start Your Own Economic Stimulus Package

by bchandler on 3:55 pm

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Sell Your House Fast. Start Your Own Economic Stimulus Package

 

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We don’t know what your current personal financial situation is. Nor the condition of your house. Here’s something to think about.

Chances Are You’re Reading This For One of Three or Four Good Reasons.

First, you may have fallen on hard times. If anything, the current economy has taken any shame out of this position. There are few of us who aren’t affected to a greater or lesser degree. Second, your house may be in a condition in which you can’t sell it unless you spend lots of money fixing it up – money you don’t have. Third, you may have inherited a house through a family event like a death or retirement. Finally, your house might be close to foreclosure, and you simply don’t know what to do next.

Here’s a Simple, Winning Strategy – Sell Your House Now. Then, Buy Another You Can Afford!

It is really that simple. If your situation is such that you need to get out of your present personal economic crisis, then stop trying to make the huge profit on your house you think you deserve. In any one of the four situations described above, you probably can’t.

But you can profit.

Many real estate investment companies (like ours) are in a position to buy your house outright very quickly. As part of the purchase plan, you will be required to pay off all the debt and difficulty associated with the property. But when you do, you will be free and clear of the house and its troubles when the dust settles.

Now, here’s what to do with the cash you have left.

Simple. Buy a House You Can Afford!

Take the proceeds from your selling off of your personal asset – your house – and use it as a down payment for a house you can afford. Now.

Interest rates are low, houses are at their lowest prices in years, and you are now free and clear of all the financial mess that got you here in the first place. What’s to stop you from buying a new house, and a new start?

Look for the Best Value You Can Find.

For us at Express Homebuyers, this is the fun part.

Our business is buying your previous house, and selling you another, similar home that we have fully renovated. Lots of the folks whose houses we buy turn around and buy one’s we have already remodeled. With new gourmet kitchens, granite counter tops, ceramic floors, and completely reconditioned bathrooms and bedrooms, our houses represent one of the best values on the home marketplace today. We buy houses in Prince Georges County, Montgomery County, Washington DC and Virginia.

We close on them pretty quickly, too – usually in under 30 days.

So, one month from today, you could be walking into a newly remodeled home instead of worrying about the one you’re in. And as a personal economic stimulus package, we think that’s pretty neat.

So, need to sell your house fast? Sell it now and improve your overall financial position. We buy houses like yours every day.

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or Call us at (877) 804-5252

Express Homebuyers

Corporate Office

6564 Loisdale Court, Suite 315
Springfield, VA 22150
Phone: (877) 804-5252
Email: express@expresshomebuyers.com

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Express Homebuyers is rated 4.6 stars on Google based on 39 reviews

Categories: Distressed Property, Foreclosure, Inheritance, Probate, Sell Your House Fast Tags: avoid foreclosure, Bankruptcy, buy my home, buy my house, express home buyers, express homebuyers, expresshomebuyers.com, Foreclosure, home for sale, homes for sale in maryland, homes for sale in virginia, save home in foreclosure, Sell home, sell home quick cash, sell house fast, sell house foreclosure, sell my home fast, sell my home quick, sell my house, sell my house now, sell my house quick, sell your house, sell2us, we buy homes, we buy house, we buy houses, www.expresshomebuyers.com

Don’t Sell Your House To a Snake! Tips from Express Homebuyers

by bchandler on 2:09 pm

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Don’t Sell Your House To a Snake! Tips from Express Homebuyers

 

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To Help You Make Sure You’re Dealing With a Reputable House Buying Firm!

After all, at some level, it’s a home you’re selling. Here are a few things to look for in a company that buys houses:

1. Does the Company Have an Office?
Has the buyer told you where their offices are located? You might want to set up an appointment to meet them at their office. Make sure that they have a permanent office where you can reach them anytime. Don’t be put off by multiple phone numbers – house buying companies and real estate firms typically use many 800 numbers to track where their calls are originating. But DO make sure the company is solvent and answers the phone!

2. Do They Have a Staff?

If they are a well-established company, they will have experienced staff who will be able to guide you through every detail of the selling process and gladly be available to answer all your questions. Watch out for delayed voice mail responses in the evening to calls you made during normal business hours.

3. How will They Finance the Purchase?
We can’t emphasize this one enough: Most “homebuyers” are looking to sign a contract and immediately “flip” the house for a relatively small profit. AND THEY DON’T PAY YOU UNTIL THE HOUSE IS RESOLD! A reliable company will have the cash or an available line of credit to buy your house. Remember, if it is sold on contingency, you will have to wait to get paid. This doesn’t stop foreclosure, back taxes, forfeiture or liens. Don’t be shy; demand proof that they have the cash. Even more, ask them for a deposit of $5,000. If they are serious about buying your house they will provide it gladly.

4. Is the Company Accredited by the Better Business Bureau?
If not, why not? Call the Better Business Bureau at (202) 393-8000 or look for the company information at the Better Business Bureau website. If they are, this logo should appear on their website:

http" target="_blank" rel="noopener noreferrer">Better Business bureau Logo

Click on it, and it will take you to their report. Checking with the Better Business Bureau will enable you to know if the company is reliable and give you some concrete history of their business.


5. Finally, Read the Contract Carefully?
Although we shouldn’t have to tell you this, let’s face it…we’re all in a hurry! Take your time. Selling your property is one of the most important decisions in your life. Don’t let the buyer pressure you. If you need more time to go over the contract demand it. Look for weasel clauses that are the big “outs” that nobody sees. These “outs” allow those snakes to slither out of your contract up until the last moment.

Obviously, We Meet these Criteria.
We are in this business to make money, true. But we also strive constantly to provide a safe haven for people who need to sell their houses fast. We know our customers want to deal with trustworthy, reputable people. That’s how we’ve managed to stay in business reputably since 2003. Need to sell your house fast?

Give a shout.

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Where is your property located?*

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or Call us at (877) 804-5252

Express Homebuyers

Corporate Office

6564 Loisdale Court, Suite 315
Springfield, VA 22150
Phone: (877) 804-5252
Email: express@expresshomebuyers.com

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Express Homebuyers is rated 4.6 stars on Google based on 39 reviews

Categories: Bankruptcy, Distressed Property, Inheritance, Probate Tags: avoid foreclosure, Bankruptcy, buy my home, buy my house, express home buyers, express homebuyers, expresshomebuyers.com, Foreclosure, home for sale, homes for sale in maryland, homes for sale in virginia, save home in foreclosure, Sell home, sell home quick cash, sell house fast, sell house foreclosure, sell my home fast, sell my home quick, sell my house, sell my house now, sell my house quick, sell your house, sell2us, we buy homes, we buy house, we buy houses, www.expresshomebuyers.com

Foreclosure and You: Pay It Off! – Express Homebuyers

by bchandler on 8:00 am

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Foreclosure and You: Pay It Off! – Express Homebuyers

 

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This is the second Express Homebuyers Blog in a series on how you can avoid foreclosure. Some of these options are more drastic than others, and they all come with unique advantages and disadvantages. We buy houses to help people out of foreclosure, so you know where we stand. But honestly, if you are facing a foreclosure situation, we believe you should be as informed as possible on the alternatives available.

Happy New Year!

It may not seem the best time to continue our discussion about avoiding foreclosure, but let’s face it, more of us than ever before are reaching what seems to be the point of no return. However, as we mentioned last time, you can take very positive steps to avoid foreclosure without sacrificing your credit or, finally, your ability to buy a home.

We discussed bankruptcy as your first option in our last blog. Now let’s look at another option that just might work for you as well.

Option 2: Make Up Your Payments in a Lump Sum or Installments.

You might be surprised at how much your lender wants to work with you to avoid foreclosure. You see, they stand to lose as much, if not more than you if they have to sell your property at auction. For them, it’s not a very good roll of the dice.

The truth is, they are very willing to work with you. The most common reason lenders don’t work with homeowners facing foreclosure is that the homeowner never asks before it’s too late.

Let’s look at some options.

If you are able to prove to the lender that you can make the payments you have missed plus make your current payments over a period of time (up to 24 months), it may be possible to keep your home. This option requires significant negotiation and discussions with your lender, but look on the up side. You get to keep your home. It’s worth it, don’t you think?

Keep in mind that you will be charged late fees, modification fees and other fees once an agreement is reached. Also, you may be subject to new, higher payments once you’ve renegotiated the terms of your loan. But if you are in the middle of a short-term cash crunch – layoff, hospital bills, emergency – this might be your best option.

If the cash crunch you are in is long term, this option simply may not be possible. the only way you can find out is by contacting your lender. Before you seek this option, be sure you have the cash on hand to pay the up-front fees as well as the patience and persistence to work with the lender.

The upside, you may be able to keep your house. The downside is that this option can be expensive, not to mention time consuming.

Obviously, we’re in the home buying business where we buy houses, fast. We’ll discuss that option in a later post. What is important today is to understand that you can work with your lender to avoid foreclosure. A counter-intuitive statistic is that most financially-pressed families pay off their credit card payments and let their mortgage payments lapse. Yet, when you think about it, what’s more important, your home or your credit rating?

Talk to your lender, today. See if this option works for you. If not, stay tuned.

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Where is your property located?*

Please select your property from the options in the dropdown list.


First Name*

Last Name*

Phone*

EmailOptional














or Call us at (877) 804-5252

Express Homebuyers

Corporate Office

6564 Loisdale Court, Suite 315
Springfield, VA 22150
Phone: (877) 804-5252
Email: express@expresshomebuyers.com

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https" alt="Better Business Bereau A+ Rating">
Express Homebuyers is rated 4.6 stars on Google based on 39 reviews

Categories: Bankruptcy, Distressed Property, Foreclosure, Inheritance, Probate, Sell a Home, Sell Your House Fast Tags: auction, avoid foreclosure, Bankruptcy, behind mortgage payments, buy my home, buy my house, express home buyers, express homebuyers, expresshomebuyers.com, Foreclosure, home for sale, homes for sale in maryland, homes for sale in virginia, save home in foreclosure, Sell home, sell home quick cash, sell house fast, sell house foreclosure, sell my home fast, sell my home quick, sell my house, sell my house now, sell my house quick, sell your house, sell2us, we buy homes, we buy house, we buy houses, www.expresshomebuyers.com

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