CREDIT SCORE

collections remain 7 years from date of initial missed payment that led to collection. paid collections are simply marked as such on report. 

charge-off remain 7 years from initial missed payment that led to charge-off even if parameters are later made on the charged off account. 

closed accounts are no longer available for further use. they may r may not have a $0 balance. Those with delinquencies remain 7 years from date closed, whether by consumer or creditor. positive closed accounts remain 10 years. 

lost credit card: if no delinquencies, those reported lost will continue to be listed for 2 years from date card reported lost. Delinquent payments that occurred before the card wast lost will report for 7 years. 

bankruptcy:  chapter 7, 11 and 12 remain 10 years from filing date. Accounts included will also remain 7 years. 

city, county, state and federal tax liens:  unpaid tax liens will remain 15 years from filing date. Paid tax liens will remain 7 years from the paid date of lien. 

should you sell your home or rent it out? What are the tax ramifications?

Some homeowners who can’t sell their home may consider converting it to a rental rather than lowering the price or leaving it vacant. Remember, if a home has been used two out of the last five years as a primary residence, it may qualify for the homeowner’s exclusion of Section 121 of the tax code. This means any gain up to $500,000 for a married couple filing jointly or $250,000 for a single person may be excluded and exempt from tax. Therefore, the property could be rented for up to three years and still fall within the qualifying timeframe. If the property was rented for more than three years, it would no longer qualify for the exclusion. Example: Phil and Miranda are married homeowners who are looking at selling their home. If they sell, they would have a $300,000 long term capital gain. Since Phil and Miranda meet the requirements of the Section 121 exclusion, there is no tax due. However, if instead of immediately selling the house, they rent the home for more than three years and then sell they would lose the exclusion. This would mean a tax liability of $300,000 x 15% or $45,000 upon the sale of the property. If there is not much of a gain to be taxed, converting a primary residence to a rental property may be an appropriate strategy. Again, real estate licensees should encourage their customers to consult with tax experts to make an informed decision.