Realty World – Corral Hollow Real Estate

 
Are you done with your Taxes yet?  Wait!… With April 15th just around the corner, here are some tips to help you….
 

 
Reap the tax deductible rewards of home ownershipIf you’ve purchased, sold or refinanced your home in the past year, tax season is the best time to reap the benefits of being a homeowner! Take advantage of some of these tax breaks today and you could enjoy a bigger return in April!
Mortgage Interest. For most homeowners, the bulk of your mortgage payment is going towards interest – and that’s a big tax break for you! The mortgage interest on your primary residence is fully tax deductible, unless, of course your loan is more than $1 million.
You can also deduct late payment charges as home mortgage interest as long as the payment was not late due to a specific service received in connection with your home loan. Also, if you pay off your mortgage early and incur a prepayment penalty, you can deduct that penalty as home mortgage interest (subject to the same requirements for late payments).
Property Taxes. Your property taxes – the annual taxes based on the assessed value of your property – can also be deducted. Your mortgage interest statement may list the amount of real estate taxes you paid if your taxes and homeowners’ insurance went into an escrow account when you closed on your mortgage. You can also review your cancelled checks to determine your total real estate tax deduction.
Loan Points. Any points you paid to get a better rate on a home loan, are tax deductible in the year you made the purchase as long as:

The loan is secured by your primary residence and it was used to buy, improve or build the home.
Paying points is an established business practice in your area;
The points are computed as a percentage of the loan principal;
The points are clearly defined on the buyer’s settlement statement; and
You put cash into your home purchase in an amount at least equal to the points you were charged.  

Loan Points on a Refi. The points you paid on a refinanced loan may also be tax deductible, however in most cases, the points must be deducted over the life of the new loan. So if you paid $2,000 in points to refinance a 30-year mortgage, you can deduct $5.56 per monthly payment, or a total of $66.72 if you made 12 payments in one year on the new loan.
Interest on a Home Equity Loan. The interest on a home equity loan may be tax deductible up to $100,000. However, if your home equity loan, when combined with your first mortgage amount, increases the debt on your home to an amount more than the property’s actual value, you’ll face deductibility limits. In these cases, the IRS allows you to deduct the smaller of interest on a $100,000 loan or your home’s value less the amount of your existing mortgage.

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Mortgage Interest Deduction Myth  bargaineering.com)
Before Buying a Home  imbrandon.com)

Many of you bought your home in 2008 and 2009 using the $8,000 tax credit.   
Here are some usefull links directly from the IRS to help you file the tax credit properly:

Basic Information
Claiming the credit on your tax return
Homes purchased in 2008
Homes purchased in 2009
Scenarios

In case you do file your tax return your self  and need help you can visit the official IRS website by clicking here.

Image by joiseyshowaa via Flickr
 

Do you live near intersection or high traffic areas?  Here are some useful tips on how to reduce the traffic noise, enjoy your outdoor activities and have a nicely landscaped backyard, all at the same time:  How to dampen traffic noise

The sales details for the first month of 2010 are showing a slow down in Tracy’s real estate market, which is typical for this time of the year.  Tracy’s inventory is still low; as of today we have 207 homes actively listed on the Multiple Listing Service for Tracy and surrounding country areas. The most important factor in purchasing a home is obtaining a loan. Government loans (FHA) are changing rules again; raising the amount of mortgage insurance premiums and raising the minimum down payment back up to 5% of the purchase price. On the other hand the tax credit is still available for qualified home buyers and California governor Arnold Schwarzenegger is about to pass another incentive for Californians; a $10,000 tax credit for new and resale home purchases. If it passes, it will become effective hopefully by the end of this month….
Following are the statistics for the month of January, 2010: 

Actively listed properties: 207

             Almost the same as it was in December 2009 (208) 

Homes that went “Pending Sale” for the last week of January:  34

             This is just a bit lower than it was for the same period in December (27)

Number of homes “Sold” in the month of December: 92

              This is a significant drop compared to the previous month when
              the number of sold home was 148 

The Average Days on the market of the Sold Properties: 46

             In December last year this number was 62.  

Average Listing Price: $296,75 
Average Sale Price: $244,573

 The charts below reflecting these numbers as well:
 
If you would like to have detailed statistics for other areas of the Central Valley, please feel free to call or email me – I would be glad to provide it for you.
 

                                                                                                                                                  
So often homewoners in foreclosure wonder where they are going to live once the foreclosure has occured.  Fannie Mae has a possible solution for properties that are owner occupied. 
Read the full story for more details.