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Budget 2010-11 and Service Tax On Purchase of Under Construction Property The budget 2010-11 brought rude shocking and a lot of confusion to prospective home buyers. But don't get too shocked, you won't pay service tax on the entire amount. The budget has suggested 10 per cent service tax on construction. For the past one month, many city builders have been asking purchasers to start paying up the service tax. Buyers are shock and say they were not informed of the additional levy when they had booked the flats. As per the budget, the service tax will be charged on only those residential projects which are still under construction.

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As the year draws to a close, many people in the real estate start thinking about their tax preparation and returns. Here are a few real estate-related tax deductions to remember when you're meeting with your accountant or preparing your return: 1. Mortgage interest - self explanatory 2. Settlement costs - origination points, title fees, appraisal costs, etc 3. Depreciation - a lot of people miss this one. Can get a little complicated, but generally speaking you can deduct a "depreciation in value" from your original purchase price, as if the property were to steadily drop to no value over the course of 27.5 years. 4. Maintenance & repairs - this can also get a little hairy, as not all repairs can be deducted, but basically any work done to make your rental property "properly habitable" can be deducted. 5. Property management costs - whether a monthly percentage of rental income or singular fees for tenant placement 6. Property taxes 7. PMI This list is in no way exhaustive, so speak to a real estate tax accountant, but don't pay one cent more than what's necessary to support Uncle Sam's spending habit! Uncle Sam's like a teenage daughter with her father's credit card... don't encourage him! Thanks http://www.clvgroup.com/

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