What is Mortgage Escrow? Escrow involves a third party (often an escrow agent) temporarily holding money or property until specific conditions are met. These conditions could include the fulfillment of a purchase agreement. In the context of real estate, escrow serves to protect both the buyer and the seller during the home buying process. Types...Read More
TAX IMPLICATIONS SURROUNDING RESIDENTIAL MORTGAGES IN MASSACHUSETTS: Q. Are last year’s mortgage escrow payments tax-deductible?A. You can deduct only the payments applied to your 2005 tax bills; you can’t deduct any payments that were carried over and applied to your tax bills for the current year.On the other hand, if you purchased a home last...Read More
Lawyers said a new law that will eliminate the requirement of filing entire trust documents in real-estate matters will help ease administrative headaches and protect their clients’ privacy.The new law, effective immediately, allows attorneys to record simply a trustee certificate at the Registry of Deeds when a property interest is owned by a trust, instead...Read More
Balancing Personal Use and Investment: Tax Tips for Vacation Homes Q. I recently purchased a vacation home, which I probably will rent out part of the time. What’s the limit on the amount of time I can use the property myself and still treat it as an investment for tax purposes? Also, must I pay...Read More
Rental Income Tax Treatment Q. We recently purchased a summer home, primarily for our own use, but we will probably rent it out now and again, just to pick up a little extra income. What tax deductions (if any) will we be able to claim?A. To start, you’re going to have to be a lot...Read More
