What does the term “Original Appraised Value” mean on a home loan?

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This term is located with my home loan information found on my mortgage company’s website, but the amount is twice the value of my loan.

I am using turbotax and trying to just do a rough calculation of my taxes before the end of the year. I need to add a home office deduction. When I add the deduction it wants me to edit my loan information for the house. What are you suppose to edit?

7 Comments
  1. Reply
    yums
    January 26, 2011 at 2:17 am

    read more on real estate, loans, mortgages that will help you more on this site

  2. Reply
    peterpfann
    January 26, 2011 at 2:59 am

    Every mortgage document is a little different.

    But the original appraised value typically refers to the value of the property at the time of the initial mortgage being agreed upon.

    This may be important later in the documents in relationship to insurance requirements for the improvements (buildings)to the property (land).

    When you refinance the mortgage company will also refer to the original appraised value to determine if the value at the time of your new application has increase (improved your equity) or decreased.

    Good Luck

  3. Reply
    Jacque w
    January 26, 2011 at 3:26 am

    Has the process taken a while? Sometimes appraised values expire after 3-6 months, and a recertification is required.

  4. Reply
    statewidecanton
    January 26, 2011 at 3:40 am

    An appraisal was done at the time you financed. The term relates to the appraised value at that time.

  5. Reply
    jo614
    January 26, 2011 at 4:36 am

    First of all I suggest that you be very careful when taking the Office in the Home deduction. You must meet the IRS criteria in order to do so. When you take this deduction what will happen is that you will figure out what percentage of your home is used for business. After that your mortgage and property taxes will get prorated according to that percentage. So if your mortgage interest is $ 1000 for the year and you use 10% of your home for business than only $ 900 will be deductible on Schedule A and the balance will be taken on form 8829.

    I suggest you get help if you don’t fully understand the concept because you will need the proper knowledge if you are audited.

  6. Reply
    travelguruette
    January 26, 2011 at 5:26 am

    I recommend you have your taxes done professionally at least the first time. For the home office are you an employee or your own business? If employee do you have an office at work but use the home as a convenience or is the home office requested by the employer? Is the office use solely for work? No kids toys, dog food bowls, computer games, extra beds for guests?

  7. Reply
    ninasgramma
    January 26, 2011 at 6:03 am

    I will address the tax concept and not TurboTax.

    Let me assume you are self-employed. Then the Office in Home Deduction is computed on Form 8829 and transfers to Schedule C. The fraction of your home that is used for the office is the fraction of your home mortgage and property taxes that is entered on Form 8829.

    If you are also deducting mortgage interest and real estate taxes on Schedule A, then you cannot deduct the Office in Home part on Schedule A. You must reduce the Schedule A deductions by the amount taken on Form 8829.

    Office in Home is tricky and complicated, you might need help with this as it is routinely scrutinized and often done wrong and/or disallowed.

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