Home sellers who have just pulled down the “For Sale” sign from their house and have made a successful sale may think the hard work is over.

It is, for the most part. But a home sale may leave home sellers with some tax questions for a tax professional. Below are some questions that home sellers should ask (with some possible answers), with the caveats that everyone’s tax situation can differ and tax laws change, so seek professional advice.

Deductions to claim from my home sale?

Don’t expect to be able to deduct expenses from fixing up a house to lure buyers. However, significant capital improvements that add to your cost basis for purposes of sale can be deducted.

Can real estate agent commission be written off?

No, not for a personal residence. But it may be added to your basis for the sale as adjustments your tax professional says are OK. Such costs can be subtracted from whatever gain you made on the house.

Do I need a real estate lawyer?

No, legal services can’t be deducted on a tax return. However, if you sold a business or rental property, they can.

Can I write off my tax lawyer and accountant?

Yes. Services for tax advice and preparation can generally be deducted from your taxes.

Deduct mortgage interest if I don’t own the house at tax time?

Yes. Your mortgage can’t be for more than $1 million and is your main or second home. Check form 1089 that is issued by your mortgage provider at the end of the year to see how much interest you’ve paid.

Do I pay taxes on the sales proceeds?

Yes. However, you can avoid paying tax on up to $250,000 of gain, or $500,000for married filing jointly, if you’ve owned and lived in the property for two of the last five years.

Can I avoid paying tax on the gain by putting the proceeds toward a new house?

No. Before 1997 the proceeds from the sale of a home to buy another house could be excluded. Now, the IRS doesn’t care what you do with the proceeds. Ask your tax pro for advice.

What am I missing?

This is the final question you should ask your tax or real estate law professional. Are you missing anything having to do with your taxes this year?

Your taxes revolve around your bigger financial picture. If you have any questions, ask. If you need something explained, ask for help. You’ve hired these professionals to work for you, so let them do it and give them time to ask you any questions.

8 Tax Questions Home Sellers Should Ask is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.

If you want to get a second mortgage so you can make renovations to your home, it can be difficult if you have poor credit. Still, there are mortgage refinance options out there.

A second mortgage can use a home’s equity as collateral for a second home loan, allowing up to 80 percent of a home’s value to be borrowed. However, getting a second mortgage through a home equity loan or line of credit can be difficult if you don’t a credit score of 680 or better.

While high home equity will make a second mortgage less risky and may compensate for poor credit, there are other mortgage refinance options. Here are a few:

Cash-out mortgage refinance

Instead of an additional loan on your home, your loan and the cash you need is refinanced into one loan with one loan payment.

Even if you have bad credit, a cash-out refi is less risky for the lender because it doesn’t involve a second loan. With a second mortgage, the second lender is second in line to get paid if a lien is ever put on the home.

Streamline refinance

Some government home loans offer what’s called a streamline refinance that offer a lower mortgage rate. FHA and VA home loans, for example, allow borrowers to refinance into a lower rate and payment without a credit check, income or employment verification, or property appraisal.

It also doesn’t matter if you how little home equity you have or if you’re underwater on your mortgage.

For borrowers with a VA loan or FHA mortgage in good standing, refinancing a loan through the federal government is so streamlined that it’s almost automatic. The underwriting process is simplified enough to allow a refinance to happen based largely on if you’ve stayed current on your mortgage payments.

HARP refinance

The Home Affordable Refinance Program, or HARP, was created in 2009 to help people who were underwater on their mortgage refinance into a lower rate. Without it, the fear was that people who owed more on their home than the home was worth would walk away from the loan and lose their home.

The federal program is set to expire at the end of 2018, though it may be extended.

Improve your credit score

If a poor credit score prevents you from getting a second mortgage, the simple solution is to improve your credit score. While not easy and usually not fast, here are the best ways to increase a credit score within a month or so to improve your chances for a mortgage refinance:

• Pay off your credit card balances.
• Pay your bills on time.
• Remove or pay off collection accounts.
• Get added as an authorized user.
• Don’t apply for new credit.
• Dispute negative accounts with the credit bureaus.

Mortgage Refinance Options if You Have Bad Credit is a post from: When Life Gives You Lemons. Did you like the post? Follow me on Twitter, like me on Facebook, or hop on over to my blog and leave me your feedback.