FORECLOSURES AND IRS AUDITS



AlexaRealty411 on Friday April 18th, 2014

Hosts: Robert Gawel & Petra Byers of Alexa Realty

Robbie: As millions of Americans scrambled to file their taxes this week, chances of getting audited are the lowest they’ve been in years and if you’ve gone through a foreclosure you might be able to buy a home again in just 12 months… All this and more next on AlexaRealty411.

Robbie: Hello and welcome to AlexaRealty 411, I’m Robert Gawel…

Petra: and I’m Petra Byers… Our first story is courtesy of the Associated Press; due to recent budget cuts the IRS will have fewer agents auditing returns this year than at any time since the 1980s.

Robbie: According to the IRS Commissioner better technology should help offset some budget cuts. Last year, the IRS audited less than 1 percent of all returns from individuals, that’s the lowest rate since 2005 and this year that number is expected to go down even more.

Petra: Here’s some interesting numbers, less than 1% of people making less than $200K were audited last year and over 10 percent of people making $1 million or more were audited.

Robbie: So, if you don’t want to get audited, don’t make any money…the IRS is sure to leave you alone.

Petra: One red flag for the IRS is when your deductions or expenses don’t match your income. In other words let’s say you deduct $85,000 in real estate taxes and mortgage interest but you report $105,000 in total income. This could prompt the question…how are you living?

Robbie: How are you living…maybe you just went through a foreclosure or short sale and typically when this happens homeowners …you must wait 3 years to buy a home again. But not any longer FHA has a new back to work program that is allowing buyers to purchase a primary home much sooner.

Petra: This new program runs through September 30th, 2016. To qualify buyers must document the financial problem that caused the short sale or foreclosure by showing a 20 percent loss in income for at least 6 straight months prior to losing the home.

Robbie: Buyers must also show that they have taken the steps to re-establish their income and credit by having a credit score of at least 640 or have undergone a HUD-approved counseling agency program on homeownership.

Petra: Good show today.

Robbie: Well its good information, with our real estate market heating up it’s good to know that more people will get to take advantage of the low home prices and historically low interest rates.

Petra: If you’re looking to buy, sell or just have real estate questions call us were here to help.
To reach us all you have to do is pick up the phone and give us a call our numbers are right here below.

Robbie: If you’re watching this on Facebook hit the LIKE button and to stay in the know in the world of real estate subscribe to our blog at alexarealty411.com and until next time thanks for watching I’m Robert Gawel

Petra: and I’m Petra Byers

Robbie: Well see you next week…bye for now

Petra: Bye

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