Archive for February, 2011
As always, Garard & Associates stays up with the latest technology in order to sell your home in the shortest period of time, and at the highest price possible. Our newest marketing techniques if using the QR code on the outside of our sign. QR code stands for quick response. Never will a buyer come up to the brochure box on the sign in front of your home and find an empty box with no brochures.
They will take their cell phone, scan the outside QR code, and will instantly get a mobile brochure, complete with photos, and description of your home. This will be in a mobile friendly format.
We market your home 24 hours a day, 7 days a week, 365 days a year.
For complete seller representation and expert marketing, call Michael Garard at 303-888-2488, or email me at email@example.com.
Many borrowers choose to utilize the 203K loan to finance their purchase or refinance, and for a lot of good reasons.
1. The down payment is minimal, an FHA insured loan requires as little as 3% down.
2. The 203K rehab is a construction loan and permanent loan, all wrapped into one. A single closing can finance the acquisition, rehab and even payments on the purchase.
3. You can create your own “sweat equity” but performing a number of the improvements yourselves, just like on HGTV or DIY network.
4. You can avoid up to six months of mortgage payments into the loan. This allows you to avoid paying two housing payments while the home is under renovation.
5. A multi-unit property can be financed, a 203K loan can be used up to four units.
6. For disable borrowers, the 203K loan can be use to bring the property up to standards to meet the needs of disabled persons.
So, what, where and how can you use the FHA 203K program?
1. New Freestanding Appliances
2. Complete Bathroom Remodel
3. Adding a New Master Bathroom
4. Upgrading Heating & Cooling Systems
5. Well & Septic
6. New Hardiplank Siding
7. Fresh Paint Inside or Out
8. Attic Build-Outs
9. Waterproofing the Basement
10. Finishing the Basement
11. Making the House Handicapped Accessible
12. Complete & Total Renovations
13. Adding a 2nd Floor
14. Adding a Bedroom
15. Moving a Historic House to New Location
16. New Deck & Outdoor Kitchen Area
17. Repairing Water Damage
18. New Hardwood Flooring or New Carpet
19. New Lighting Fixtures
20. New Windows & Doors
21. Upgrading Plumbing & Electrical Systems
22. New Fixtures for Tubs, Bathrooms and Kitchens
23. Opening Up a Floorplan
24. New Kitchen Counters
25. Vaulting Your Ceilings
26. Making Your House More Energy Efficient
27. Going Green with Solar Panels
28. Getting a Condo Ready for Your New College Student
29. Much, Much More
Contact me at firstname.lastname@example.org, or call directly to 303-888-2488 and I can get you in touch with a lender to discuss your needs.
Another guest article about your taxes presented by: Barbara Eisner Bayer
Published: January 27, 2011
Get an “A” on your Schedule A Form: Dodge these tax deduction pitfalls to save time, money, and an IRS investigation.
Trap #1: Line 6 – real estate taxes
Your monthly mortgage payment often includes money for a tax escrow, from which the lender pays your local real estate taxes.
The money you send the bank may be more than what the bank pays for your taxes, says Julian Block, a tax attorney and author of Julian Block’s Home Seller’s Guide to Tax Savings. That will lead you to putting the wrong number on Schedule A.
- Your monthly payment to the lender: $2,000 for mortgage + $500 escrow for taxes
- Your annual property tax bill: $5,500
Now do the math:
- Your bank received $6,000 for real estate taxes, but only paid $5,500. It may keep the extra $500 to apply to the next tax bill or refund it to you at some point, but meanwhile, you’re making a mistake if you enter $6,000 on Schedule A.
- Instead, take the number from Form 1098—which your bank sends you each year—that shows the actual taxes paid.
Trap #2: Line 6 – tax calculations for recent buyers and sellers
If you bought or sold a home in the middle of 2010, figuring out what to put on line 6 of your Schedule A Form is tricky.
Don’t simply enter the number from your property tax bill on line 6 as you would if you owned the house the whole year. If you bought or sold a house in midyear, you should instead use the property tax amount listed on your HUD-1 closing statement, says Phil Marti, a retired IRS official.
Here’s why: Generally, depending on the local tax cycle, either the seller gives the buyer money to pay the taxes when they come due or, if the seller has already paid taxes, the buyer reimburses the seller at closing. Those taxes are deductible that year, but won’t be reflected on your property tax bill.
Trap #3: Line 10 – properly deducting points
You can deduct points paid on a refinance, but NOT all at once, says David Sands, a CPA with Buchbinder Tunick & Co LLP. Rather, you deduct them over the life of your loan. So if you paid $1,000 in points for a 10-year refinance, you’re entitled to deduct only $100 per year on your Schedule A Form.
Trap #4: Line 10 – HELOC limits
If you took out a home equity line of credit (HELOC), you can generally deduct the interest on it only up to $100,000 of debt each year, says Matthew Lender, a CPA with EisnerLubin LLP.
For example, if you have a HELOC for $200,000, the bank will send you Form 1098 for interest paid on $200,000. But you can deduct only the interest paid on $100,000. If you just pull the number off Form 1098, you’ll deduct more than you’re entitled to.
Trap #5: line 13 – Private mortgage insurance
You can deduct PMI on your Schedule A Form, as long as you started paying the insurance after Dec. 31, 2006. (Also, this is also a good time to review your PMI: You might be able to cancel your PMI altogether because you’ve had a favorable change in loan-to-value status.)
Trap #6: line 20 – casualty and theft losses
You can deduct part or all of losses caused by theft, vandalism, fire, or similar causes, as well as corrosive drywall, but the process isn’t always obvious or simple:
- Only deduct losses that are greater than 10% of your adjusted gross income (line 38 of Form 1040).
- Fill out Form 4684, which involves complex calculations for the cost basis and fair market value. This form gives you the number you need for line 20.
Bottom line on line 20: If you’ve got extensive losses, it’s best to consult a tax pro. “I wouldn’t do it myself, and I’ve been dealing with taxes for 40 years,” says former IRS official Marti.
Barbara Eisner Bayer has written about personal finance for the past 17 years. She works hard to translate IRSese into plain English. She has unbounded respect for CPAs.
For information on Highlands Ranch and its surrounding areas, call me at 303-888-2488 or email me at email@example.com.
The latest MLS statistics for Highlands Ranch has been released, and for this early part of the real estate selling season, there have been some changes. The January 2011 Highlands Ranch one page report can be printed, but a few points stand out.
1. # of closed sales from last January to this January went up 34%
2. Average Days on the Market went up 14% to 114 days
3. # of new listings went down 34%
4. Average Days on the Market for condos went down 15% to 94
5. Absorbtion rate for condos is over 7 months, compared to homes at about 5 months.
For specific area by area, subdivision by subdivision, for your home, give me a call at 303-888-2488, or email me at firstname.lastname@example.org.
By: G. M. Filisko
Published: January 25, 2011 and now appearing in our blog is a great article to make you think of basic questions for your accountant in regards to your tax situation.
Sin #1: Deducting the wrong year for property taxes
You take a tax deduction for property taxes in the year you (or the holder of your escrow account) actually paid them. Some taxing authorities work a year behind—that is, you’re not billed for 2010 property taxes until 2011. But that’s irrelevant to the feds.
Enter on your federal forms whatever amount you actually paid in 2010, no matter what the date is on your tax bill. Dave Hampton, CPA, tax manager at the Cincinnati accounting firm of Burke & Schindler, has seen home owners confuse payments for different years and claim the incorrect amount.
Sin #2: Confusing escrow amount for actual taxes paid
If your lender escrows funds to pay your property taxes, don’t just deduct the amount escrowed, says Bob Meighan, CPA and vice president at TurboTax in San Diego. The regular amount you pay into your escrow account each month to cover property taxes is probably a little more or a little less than your property tax bill. Your lender will adjust the amount every year or so to realign the two.
For example, your tax bill might be $1,200, but your lender may have collected $1,100 or $1,300 in escrow over the year. Deduct only $1,200. Your lender will send you an official statement listing the actual taxes paid. Use that. Don’t just add up 12 months of escrow property tax payments.
Sin #3: Deducting points paid to refinance
Deduct points you paid your lender to secure your mortgage in full for the year you bought your home. However, when you refinance, says Meighan, you must deduct points over the life of your new loan. If you paid $2,000 in points to refinance into a 15-year mortgage, your tax deduction is $133 per year.
Sin #4: Failing to deduct private mortgage insurance
Lenders require home buyers with a downpayment of less than 20% to purchase private mortgage insurance (PMI). Avoid the common mistake of forgetting to deduct your PMI payments. However, note the deduction begins to phase out once your adjusted gross income reaches $100,000 and disappears entirely when your AGI surpasses $109,000.
Sin #5: Misjudging the home office tax deduction
This deduction may not be as good as it seems. It often doesn’t amount to much of a deduction, has to be recaptured if you turn a profit when you sell your home, and can pique the IRS’s interest in your return. Hampton’s advice: Claim it only if it’s worth those drawbacks.
Sin #6: Missing the first-time home buyer tax credit
If you met the midyear 2010 deadlines, don’t forget to take this tax credit into account when filing.
Even if you missed the 2010 deadlines, you still might be in luck: Congress extended the first-time home buyer credit for military families and other government workers on assignment outside the United States. If you meet the criteria, you have until June 30, 2011, to close on your first home and qualify for the tax credit of up to $8,000.
Sin #7: Failing to track home-related expenses
If the IRS comes a-knockin’, don’t be scrambling to compile your records. Many people forget to track home office and home maintenance and repair expenses, says Meighan. File away documents as you go. For example, save each manufacturer’s certification statement for energy tax credits, insurance company statements for PMI, and lender or government statements to confirm property taxes paid.
Sin #8: Forgetting to keep track of capital gains
If you sold your main home last year, don’t forget to pay capital gains taxes on any profit. However, you can exclude $250,000 (or $500,000 if you’re a married couple) of any profits from taxes. So if you bought a home for $100,000 and sold it for $400,000, your capital gains are $300,000. If you’re single, you owe taxes on $50,000 of gains. However, there are minimum time limits for holding property to take advantage of the exclusions, and other details. Consult IRS Publication 523.
Sin #9: Filing incorrectly for energy tax credits
If you made any eligible improvement, fill out Form 5695. Part I, which covers the 30%/$1,500 credit for such items as insulation and windows, is fairly straightforward. But Part II, which covers the 30%/no-limit items such as geothermal heat pumps, can be incredibly complex and involves crosschecking with half a dozen other IRS forms. Read the instructions carefully.
Sin #10: Claiming too much for the mortgage interest tax deduction
You can deduct mortgage interest only up to $1 million of mortgage debt, says Meighan. If you have $1.2 million in mortgage debt, for example, deduct only the mortgage interest attributable to the first $1 million.
This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.
G.M. Filisko is an attorney and award-winning writer who was once mortified to receive a letter from the IRS—but relieved to learn the IRS had simply found a math error in her favor. A frequent contributor to many national publications including AARP.org, Bankrate.com, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.
For specific concerns on your neighborhood in Highlands Ranch, call me at 303-888-2488, or email me at email@example.com.
According to the Public Trustee of Arapahoe records, their data shows that the building at 9033 E. Easter Place, owned by Home Builders Association of Metro Denver is in Foreclosure. As with many residential homeowners who have loans they could not pay on, now even the big boys, who build those very same residential homes, are in foreclosure.
The loan being foreclosed on is from Colorado Capital Bank who originally loaned the HBA $600,000 in June of 2007, when the HBA bought the building for $2,000,000. Original interest rate was 8.25%, but thru several loan modifications, the loan was increased to $1,400,000 with a new interest rate of 7.5%.
There are about 10 tenants in the building, that was originally built in 1979, has had some remodeling in the entryway and has 27,540 square feet on 2 floors. The land acreage is 1.5 acres, zoned B-1, and the current county assessors value is $1,800,000. Taxes for the year are only $51,989.
Since the loan went into default, according to the loan documents, the default interest rate automatically rises to 21%.
The Home Builders Association has until April 27th to negotiate a new loan, conduct a “short sale”, or pay off the loan, before the property, #5493-2010 is sold at the county courthouse steps.
For more information on how you can profit on the growing foreclosure market, contact me, as I have 22 years experience with Colorado Foreclosures. I can be reached at firstname.lastname@example.org, or calling 303-888-2488.
Its Super Bowl week and one of the last unofficial holidays will be Super Bowl Sunday when Pittsburgh Steelers play the Green Bay Packers. Went looking online and found some tickets to buy for the game, on the official NFL ticketmaster site. So with extra money in hand, I can sit in section C135, Row 17, about the 4o yard line and pay $23,730 for EACH ticket, a combined $47,460 for 2 seats. Given the game time, halftime show, and pre and post time, of about 5-6 hours, that is about $8000 per hour to sit in those 2 seats.
Now if me and 22 of my buddies want to live it up in style, we can purchase the “Hall of Fame” Suite, on the 30 yard line, with catered food and drink for only $334,905, or $14,561 per ticket. But we still need to park, and the parking permit in the “tailgating section” is another $621, or $27 per person.
Or I can watch at home on my TV, for free, never miss a moment of the game with DVR, and save $335,000. Plus I will see the Super Bowl TV ads, as they air in real time, and watch the replays, close up. What a bargain.
You can reach me at 303-888-2488, or email me at email@example.com any time for real estate information, but not from 3:30 to 8pm on this Sunday.