What the heck is depreciation recapture, or unrealized depreciation, or unrecaptured depreciation? You’ve owned a rental property for a few years, and it’s worked out pretty well. You’ve made a little bit of money most years. You’re looking forward to cashing out the profits! And then you get the tax bill. Oh my! You now… | Read More…
If Your Rental Is Not Making Money, Stop Saying “It’s A Good Investment”
What makes a good investment? Well, it’s generally considered to be an investment that increases your net worth. And net worth is important – but so is cash in hand. As a financial educator, and a military landlord myself, I spend a lot of time talking to military families about their rental houses. In almost… | Read More…
How To Get A Refund Of The VA Home Loan Funding Fee
Are you eligible to get a refund of the VA home loan funding fee? Home mortgages guaranteed by the Department of Veterans Affairs (VA) are a valuable benefit of military service. One characteristic of a VA-backed home loan is that you pay a funding fee when you get the loan. However, some folks are exempt… | Read More…
From the Mailbag: Dislocation Allowance FAQ
Ah, dislocation allowance, aka DLA! Such a huge benefit, and such a source of frustration. Here are some of the DLA questions I’ve answered recently. (As always, things change. Talk to your finance folks to find out the exact rules for your branch this week.) Learn more at Everything About Dislocation Allowance. Can I Get Dislocation… | Read More…
2023 Military Basic Allowance for Housing Rates
2023 military basic allowance for housing rates are out! Go see! (iPhone users reading this on Facebook, you may need to open this page using the three dots instead of clicking through from Facebook. Not on an iPhone? Right-click, select “copy link address,” and put it into a new tab. I wish I could fix… | Read More…
Five Things You Need To Know About The New BAH Rates
Military families across the country are waiting anxiously to see what their Basic Allowance for Housing (BAH) rates will be in 2023. (The new bah rates are usually announced on or around 15 December.) With housing prices going up significantly in many areas, many have their fingers crossed for a big increase for next year. Here… | Read More…
BAH Rate Protection (or The Grandfather Clause)
As the Department of Defense (DoD) gets ready to release the 2023 Basic Allowance for Housing rates, this is a perfect time to review BAH rate protection, or “the grandfather clause.” (Rates are usually announced on or around the 15th of December.) Each year, the DoD calculates the costs to rent a house in each… | Read More…
Capital Gains Rules for Military Families
Note: This is not professional tax advice. While I have confirmed this information with various professionals, do not take my word for it. Read the tax rules yourself (link at the bottom.) Then, consult with your tax professional to see how the rules apply to you. Capital Gains? What the heck are they, and when… | Read More…
Evacuation, Military Entitlements, and Insurance Coverage
Every year, our country has emergency weather situations, and people have to make hard decisions. Military families wonder if they should evacuate . When and if the military or their insurance company will help with expenses may be part of that decision. There are some times when the military will pay families to evacuate a… | Read More…
Why Does My Mortgage Payment Change From Year To Year? How Mortgage Escrow Works
One of the most confusing parts of having a mortgage is understanding how the payment on your fixed-rate mortgage can change, usually every single year. In order to understand why your payment changes, you need to know your escrow account works. An escrow account is an account that pays different bills related to the property…. | Read More…