Tax Filing Strategy #1 – Boarder Income
Even though this past Friday was the first official business day of the year today is the first day everyone is back to work, back to school, and back to the routine. My gym was busy this morning, the sidewalks around my house were filled with kids walking to school, and the morning commute was back to it’s heavy load. All this means is 2015 is off and running.
January doesn’t just mean the start of the new year. It also means the start of tax season. At this time of the year I like to contact the clients I met during the previous year to review our tax filing strategy for 2014. These clients are people who I met in 2014 and decided to put off buying until 2015 so they could strategically file their taxes to maximize their purchase power.
In this week’s post I want to highlight a little-known strategy to boost home refinance power. That strategy is boarder income or room rent. Home owners who rent a room are able to use that income to help them qualify for a refinance. And they aren’t hit with the 70% rule that applies to rental income collected from separate rental properties. While this doesn’t help a person looking to buy a home it might be a strategy that would apply to them down the road when they are a home owner.
To see exactly how this could affect your borrowing power or what we can do to ensure your tax returns help rather than harm you click here.
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