Property taxes deductible on all real estate holdings

Q: I own a vacation condo, and my primary home is elsewhere.

Can I deduct real-estate taxes on both properties on my tax return?

Your answer to this question in a recent column sounded like yes, but I was always told that you could only deduct on a primary residence. -- M.M.

A: All property taxes you pay on any real estate you own are income-tax deductible.

You can file amended returns for three years past, and it may be worth your while to do so. If it was your present tax preparer who said you could deduct on only one residence, go to someone else.

You can also, by the way, deduct mortgage interest paid on both primary and secondary homes.

For that deduction, limitations start only after you've borrowed more than a million dollars.

Mineral rights apply

beneath the surface

Q: I am interesting in buying 17 acres, and the seller wants the mineral rights. What does this mean? -- D.S.

A: The seller is willing to transfer ownership of the surface of the land and the air above it -- what you usually think of as the real estate. But the seller wants to keep ownership of any valuables below the surface.

If there were something like gold under there, or perhaps natural gas, it would not belong to you.

Purchase contract

determines deposit return

Q: I intended to purchase a home. I got a prequalification letter from a bank but was denied a mortgage three days before the scheduled closing. The sellers sold the house within two weeks, but their attorney did not return the earnest money deposit to me. Can they do that? -- W.

A: Your purchase contract should tell you whether or not you're entitled to the return of your deposit if you can't secure financing after making a good-faith effort.

Take all the documents to a real-estate lawyer for at least one interview to find out where you stand.

If the deposit was for a few thousand dollars, you can represent yourself in small-claims court and find out what a judge has to say about it.

Leaky basement walls

can scare buyers off

Q: When I'm selling my home, if the basement walls leak from poor workmanship, what would be the average discount I would have to offer in percentage? -- via e-mail

A: As you realize, you must disclose a problem, especially one that potential buyers can't see for themselves. But leaky basement walls will make your house hard to sell. It's the kind of thing that really scares buyers off. You'd have to ask a pretty low price to get anywhere.

Have the problem fixed before you put the house on the market. That will probably be less expensive in the end than discounting your price.

Local regulations

determine fence placement

Q: If a fence is put up between property lines and it is not placed on the boundary line, how far off the boundary line does it have to be? I thought it was 6 inches. -- L.R., via e-mail

A: Various setbacks and side-yard restrictions are set by local regulations. To find out what would apply in your area, call your town or city building bureau.

Home condition may be more important than agent choice

Q: How do you find an aggressive agent, a real go-getter, who can write an ad so attractive that people cannot resist looking at this home?

Most agents just want to get the listing, but I want someone who plans on doing everything he or she can to get that home sold. -- via e-mail

A: If you invite agents over from several different companies, you should be able to judge which has the go-getter outlook that suits you. You could ask for a list of recent sales and details of their marketing plans. You could ask each to write a sample ad for your property.

But I have to tell you -- ads may bring viewers, but they don't sell houses. What counts is a proper price, sparkling condition, and multiple listings so that a wide pool of buyers can find out about the place, plus skillful showing and negotiation and experienced guidance right through any roadblocks to closing.

New deed needed for daughter

Q: Edith, how can I add my daughter to our warranty deed on our house as tenants in common with the right of survivors, and how much will it cost? -- M.M.

A: You would sign a new deed naming the two of you as co-owners in whatever fashion you wanted, and have the deed recorded.

But, you know, tenants in common don't have the right of survivorship. It sounds as if you need some advice and information from a lawyer to make sure that you accomplish your goal and that you understand the possible drawbacks.

Edith Lank will respond personally to any questions sent to her at the following address: 240 Hemingway Drive, Rochester, NY 14620 (please include a stamped return envelope). Readers may e-mail her at ehlank@aol.com.