APRIL
2004 - THE
TAX ISSUE
Tax Exemptions are Abounding in Home Ownership
There are so many benefits to home ownership - it's one of blessings that we can currently count on as U.S. residents in the new millennium. As we grow as proud homeowners, the government encourages us by revitalizing some very promising tax deductions.
Take Andy, for instance. He bought in the Oakwood section of Venice when it was a scary place and watched the renaissance. His property is now worth many times what he paid for it. Lucky guy. More....
Deduction Time: Homeowners have a lot to Write Off
Nobody likes paying taxes, but some households can take more deductions than others. If you are a homeowner, you have the opportunity to take some special tax deductions that are not available to renters. If you own a home or are thinking about buying or selling, take a look at some of the perks the IRS offers so you can save yourself money.
1) Deduct
your mortgage interest.
Homeowners get the perk of deducting all of the interest they pay on mortgage
balances of $1 million or less ($500,000 if married filing separately).
Tax director John Battaglia of Deloitte & Touche’s Private Client
Advisors Group pointed out that if you’re in the 30 percent tax
bracket and can afford $1,000 a month for your home before you take mortgage
interest into account, that amount is actually $1,240 after taxes. If
you figure $800 of that $1,000 payment is mortgage interest, as it can
be in the early years of your mortgage, you’ll get 30 percent of
that $800 back from the IRS, or $240. And so, a new homeowner can actually
afford a $1,240 payment.
More....
INFOBITS…
STATEWIDE -> According to the California Association of Realtors, the 10 cities and communities statewide with the greatest median home-price increases in the fourth quarter of 2003 compared to the same period a year ago were:
Westlake
Village - 58.8%
Sierra Madre - 56.7%
Fairfax - 49.3%
Sanger - 45%
Highland - 42.2%
Hermosa Beach - 40.4%
El Segundo - 37.8%
Perris - 37.5 percent%
Desert Hot Springs - 35.9%
Reedley - 35.3%
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10 Commandments for Successful Leaders
The Economist recently ran a list of the top qualities exhibited by successful leaders. That list includes:
1. A sound ethical compass
2. The ability to make unpleasant decisions
3. Clarity and focus
4. Ambition
5. Effective communication skills
6. The ability to judge people
7. A knack for developing talent
8. Emotional self-confidence
9. Adaptability
10. Charm
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The American Dream Downpayment Act
The
American Dream Downpayment Act, H.R. 1276/S. 811, which passed in December,
provides an average of $5,000 in down payment and closing cost assistance
to help first-time home buyers with annual incomes that do not exceed
80 percent of the area median income.
Grants are made to state and local governments through HUD's HOME Investment
Partnership program. Families interested in applying for grants should
contact their state or local housing agency.
The American Dream Downpayment Act also includes two other important provisions backed by the National Association of Realtors. First, it will increase Federal Housing Administration loan limits for the construction of multifamily housing in high-cost areas. This will aim to increase private construction of affordable rental housing in the nation's high-cost urban and suburban areas. The per-unit maximum loan limit would increase from $194,190 to $218,465, which means the per-unit loan limit for a typical two-bedroom apartment in a high-cost urban area would rise from $136,749 to $153,843.
Second, the bill provides a technical correction to the FHA's adjustable-rate mortgage program that aims to make the product more available to consumers.
