Six Tax Breaks Every Homeowner Should Know

Benjamin Franklin once said, "In this world nothing can be said to be certain, except death and taxes." More than 200 years later, this certainly holds true. And while being a homeowner won't add years to your life, the modern tax code has a number of benefits certain to make your tax bill lower. 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 American homeowners save about $2,000 per return by deducting mortgage interest. And when added up over the life of the loan, this can make a big difference in your retirement savings. This is a huge break that renters don't get! So take advantage of it. Don't forget about the points – Points paid to refinance your home are also fully deductible throughout the life of the loan. For example, let's say in February of this year you refinanced your home for a new 20-year loan (or 240 months) and you paid $3,000 in points. By the end of this year, you can write off $125.00 for those 10 months (March through December). Beginning next year, of course, and each year thereafter, you can write off the full $150.00 until the points have been fully deducted. 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. Old points are as good as new – Unamortized points from old refinancing are deductible in the year of a new refinance.

Using the above example, let's say rates dropped again and you refinanced again in February of the next year and paid $2,400 in points. The remaining balance of the points on the old loan, $2,875, is fully deductible – plus the money you could deduct for any qualifying mortgage payments made toward the new points. Sell Your House – While points are not deductible for sellers, 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 home buyers (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 home buyers an interest-free loan to help them buy a home! There are, of course, income limits to qualify for this incentive, and other important details, but give us a call, and we'll see if you can take advantage of a tax gift that even Ben Franklin could appreciate. Remember, this, or any article you might read on your own, should never serve as tax advice. Always consult with a qualified CPA or Tax Preparer before making any tax decisions. If you need a referral, give us a call, and we'll be glad to give you the names of the reliable professionals we work with on a regular basis.
Nick Alameddin (760)802-4166

What Homeowners Assistance Are Available In San Diego?

Public homeowner assistance programs may be unavailable or hard to get. With budget constraints and San Diego tax dollars not coming in as fast as some officials has expected, struggling homeowners are having a harder time taking advantage of programs. Even when they are behind on their mortgage. Assistance dollars from the public sector are scarce. Homeowners that apply for assistance programs may wait weeks and months for answers.
Privately, there are ways you can get help. While public programs vary in terms of funding, an experienced San Diego realtor can help homeowners with their problem. It's called a "Short Sale" and an experienced agent can walk you through the process of selling your home and erasing the balance of the mortgage. Even if the home doesn't sell for close to what you owe, in most cases, you still can walk away.
Local and national Banks are working out short sale agreements with customers. In order to not go through with the costly foreclosure process, banks are letting troubled homeowners put their home on the market and accepting the best offer that the homeowners get in most circumstances. Banks save money by not foreclosing and generally get a little more from a lived in home in La Jolla than an abandoned home. No cost to look and see how to see if this is possible
Homeowners can leave their home even if they owe more than it's worth if they are no longer able to make their payments.
Homeowners don't have to pay anything to get this done. What's important is that they contact a Realtor that has short sale training in the past, and has experience negotiating offer with banks. A short sale may be a good answer if your San Diego home is underwater. A short sale also provides homeowners financial dignity by not having to go through the foreclosure process which includes an auction and an eviction process by their lender.
One of my recent short sale clients was able to stay in the home for an extra 9 months and save up for a deposit to rent another home. By cooperating with the lender, maintaining the home and doing a short sale. Homeowners are able to buy another home in about two years, versus seven if that home went into foreclosure.
To get more information, please call me at 760-802-4166, or go to the contact page.

Special Event "Shop Solana Beach First"

On August 29, 2009 the City of Solana Beach is having a special event, “Shop Solana First Day”. Residents and guests are invited to visit the City shops and take part in a treasure hunt. Shoppers can pick up the “treasure”; a free reusable shopping bag with the Shop Solana First logo on it from participating shops, displaying a special decal in their store windows.

Treasure Hunt hours will be from 10am until 4pm. Entertainment will be provided, along with various other special events, such as sidewalk sales, a barbeque and more.

For a copy of this events flyer click http://solana-beach.hdso.net/docs/CM_SSBF.pdf

If you are not a resident of Solana Beach, but would like to take advantage of this fun event next year, as well as other great experiences this fine, beach side city has to offer, call or e-mail me, Nick Alameddin Nick@mypfgroup.com to view some of the fabulous properties available.

Interest Rate Outlook

The 30-year fixed-rate mortgage fell by one-eighth of a percentage point this week according to www.bankrate.com . We haven’t seen long-term rate averages below 5.0 percent for the past two months and with treasury yields strongly trending upward, nothing lower than that is anticipated in the near future. In fact, rates are likely to average a bit higher.

If you have been sitting on the sidelines waiting for a lower rate, time to jump in. Lower rates combined with the federal tax credit of $8000 for first time buyers and lower home values in San Diego make the perfect time for buying your piece of the American dream.

Keep in mind, in order to cash in on the tax credit you must have your purchase approved no later than November 30, 2009.

Nothing quick about getting rich with real estate

Ever watch those late night or weekend infomercials with the promise that you will be a millionaire in one year?

It seems like every day there is a new person claiming that they have “the perfect system” to achieve millions of dollars in income by simply following what they have to say. In the early nineties, there was Tom Vu. With his flashy convertible Rolls Royce full of girls in bikini’s

Now you have a plethora of the same message, maybe little less flashy but full of people promising the same thing. From Carlton Sheets, John Beck and Robert Allen to Dean Graziosi. Each one is different yet they all promise the same thing, send us XYZ and we will send you our magic formula.

Just like stocks if you want to make money in real estate, buy low and sell high. The Market in San Diego County is at an all time low. Discuss your options with an experienced professional real estate agent. Find out what they can do for you.

I recently helped a client buy a 2 bedroom condo in an excellent condition, purchase price $120,000. With a price this low, this property can be used to generate a positive cash flow. Call today to find out what I can do for you.

Moving to San Diego? Think Carmel Valley

San Diego has many wonderful neighborhoods to move into, from Carlsbad, Rancho Santa Fe, La Jolla, Del Mar, Solana Beach and Carmel Valley. Families typically scout for neighborhoods that offer the best schools and family friendly surroundings.

Carmel Valley has it all. Located directly east from Del Mar’s beautiful beaches and south of Solana Beach, families still choose it because of it’s great schools. Some of the schools that Carmel Valley boasts of are Ashley Falls, and Torrey Hills at the elementary level, Carmel Valley Middle School at the Middle school level and, Torrey Pines High, to name a few. Check out their school ratings at
http://school-ratings.com/cities/San_Diego.html .



Carmel Valley has many great neighborhoods such as Torrey Hills, Palacio Del Mar, Promontory, Sonoma, Santa Barbara and Santa Fe Summit to name a few. It also offers exquisite estates in areas like Meadow Del Mar, Rancho Pacifica and Fairbanks Highlands.

While in Carmel Valley, If you are in the mood for some French pastries. Check out the Champagne Bakery http://www.champagnebakery.com/ , it’s to die for.

If you are looking for a new home in San Diego, contact us at 858-455-6700 or shoot me an e-mail at Nick@mypfgroup.com

San Diego Makes the top 10 places to buy a home

A home buying decision should not be based on price alone, according to ABC news. Instead look for a community with strong job markets and steady housing values. Cities with common factors such as military bases, college towns, a strong tourism industry and state capital fare well "They are more recession proof", according to Zillow, an online real estate information company.

This year San Diego made number 3 on the list, with its median home value at $346,000, down 14% from a year ago. What has kept America's Finest City so close to the top of this national list? San Diego has many of the common factors that make it desirable. Schools such as SDSU, USD and UC San Diego among a few, not only attract students, but also provides jobs for faculty and staff. Also San Diego has always been a big military base town with the Naval Amphibious Base (NAB) Coronado, Camp Pendleton and others which stimulate spending.

Coastal cities of San Diego County like La Jolla and Solana Beach offer tourists some of the most beautiful beaches in California. Not only is Del Mar included in the list of wonderful seaside cities, it's also home to the famous Del Mar Horse races and the San Diego County Fair.

If you are thinking about buying or selling a home in any of the San Diego Coastal Communities please visit www.PremiereSD.com or call us at 858-455-6700