taxes

Sellers once again might want to consider "owner financing" as a method to get that house sold -- and reap some tax breaks, too.

Owner financing (also known as "seller financing," "taking back the note," or "an installment sale") is estimated to be used in 10 percent to 15 percent of today's home sales. The term describes a legal transaction in which the buyer obtains financing to purchase a home through the seller, instead of through traditional banks, credit unions or other lending institutions. Essentially, the buyer makes payments directly to the seller.

Buyer and seller agree on a purchase price, down payment, and regular monthly payments to the seller. Payments are spread over time, like an installment plan. This spreads the seller's taxes due on capital gains over time. Sellers are taxed only as principal is received.

Could seller financing work for you?

If you live in the state of Florida, you pay taxes on your home according to a dual-class tax system. There's one type of tax system for those who live in Florida as their primary residence and another for those who live there part-time or own vacation property. And it's a good thing, too: Considering the rocky Florida real estate market, those who stick it out year after year deserve a break.

Recently, the state's Supreme Court refused to hear a challenge to this system, which means the appeals court decision that ruled this dual-tax system constitutional will stand. The dual-tax system became law after a constitutional amendment called "Save Our Homes" passed in 1992 and took effect in 1995.

You've filed your taxes, now shred the evidence--for FREE!

Yes, you should keep tax-related documents locked away for a few years in case the IRS comes calling with questions, but for those keeping multiple drafts of their tax forms and any other sensitive paper documents, the Better Business Bureau is here to help. This Saturday, April 17, the BBB is offering free document shredding at 55 locations across the U.S. in honor of Secure Your ID Day, the BBB-hosted event promoting identity theft prevention. (After all, identity theft costs businesses money, as well as individuals).

Sarah Palin may enjoy hunting wolves via helicopter, but, nearby homeowners might want to ask about her ability to shoot down something else: the valuation on her Wasilla home. The Palin home is worth a lot less than her neighbors' homes -- reducing her property tax obligations.

If Palin isn't paying her fair share, who's really picking up the tab for trash removal in Wasilla?