My Real Estate Blog

The following are a few ways your CPA or Tax Preparer can help you save:

Take an interest in your mortgage interest – Statistics show that only about half of homeowners claim this valuable deduction. Make sure you're one of them. On average, qualified homeowners save about $2,000 per return by deducting mortgage interest. Renters don’t get this huge break! So take advantage of it.

Property Taxes - The annual taxes based on the assessed value of your home are tax deductible.

Don't forget about the points – It's important to note that buyers can also deduct mortgage points that are paid by the seller, as long as the cost basis of the property is reduced by the amount of the seller-paid points. Points paid to refinance your home are also fully deductible throughout the life of the loan.

Sell Your House –You can exclude as much as $250,000 in gain ($500,000 on a joint return), when you sell your primary home (your principal residence for two of the last five years). If you don't qualify for the two-year rule, you can get a partial exclusion if the sale of your home is the result of either qualifying changes of employment, health reasons, or other unforeseen circumstances.

Casualty deductions – Floods, forest fires, hurricanes, earthquakes and other natural disasters can be devastating, especially to homeowners. Ask your CPA how you can take deductions on casualty losses, even if you collected insurance. In addition, if the President declares your area a disaster area, you have even more options.

New $7,500 tax credit for first–timers – The government has created a temporary monetary incentive, a tax credit for first time homebuyers (that's anyone who hasn't owned a home in the last three years), as a tool to stimulate the housing market. The tax credit (not a tax deduction), will be 10% of the purchase price of a home, up to a maximum of $7,500. In other words, the government is providing first time homebuyers an interest-free loan to help them buy a home! There are income limits to qualify for this incentive.

This should not serve as tax advice. Always consult with a qualified CPA or Tax Preparer before making any tax decisions. If you need a referral, give me a call.

Daylight-Saving Time is ending. This means most Americans will be setting their clocks back one hour and returning to Standard Time on Sunday, November 2nd at 2 a.m.

If it seems like we're a little later than usual in setting back the clocks, you're right. Daylight-Saving Time was extended by an entire month this year as a result of the 2005 Energy Policy Act. This law extended daylight-saving time by four weeks; beginning three weeks earlier and ending one week later.

This is a good time to perform important tasks around the house, including:

• Resetting automatic lights and sprinklers to standard time operation.
• Checking fire extinguishers and testing smoke detectors.
• Restocking first-aid kits and emergency supplies.
• Changing important passwords and personal identification numbers (PINs).
• Rotating tires and inspecting the spare.

Most importantly, take advantage of your "extra" hour this weekend to think about your financial goals for 2009!