Truckee, CA

Truckee Real Estate - Lake Tahoe Real Estate and The Tax Benefits of Home Ownership

Bonnie Jessee, ABR 530 412 3984

Everyone knows that owning a home is the American dream, but did you know that borrowing to pay for one is a taxpayer's dream? Home mortgage interest is deductible on your income taxes if you itemize. You can deduct the interest on up to one million dollars of home mortgage debt, whether it is used to purchase a first or a second home. You can also deduct the interest on up to $100,000 of home equity debt, even if you don't use the money for home improvements. Real estate taxes are deductible as well.

What could the home mortgage deduction mean to you? What follows are two examples of the potential tax savings.

"Bob" rents a home at a cost of $1,200.00 per month. He is single with no children and takes the standard deduction on his income taxes. His adjusted gross income is $128,000. He has $3,500 in state income tax withheld from his paychecks throughout the year, but doesn't qualify for any other itemized deductions. Bob's federal income tax liability for 2008 will look something like this:

Adjusted gross income $128,000-less standard deduction, Single $4,400-less personal exemption $2,800

Taxable income $120,800

Bob's 2008 federal income tax $32,129

Suppose there is another "Bob" out there. This Bob is single with no children and is paying the mortgage on the home he purchased a few years ago. Bob has been saving up and this year he fulfills his dream of purchasing a vacation home. It's not much, just a cabin in the woods, but it has a bedroom, bath, and kitchen. Here is what Bob's second home does to his tax liability for 2008:

Adjusted gross income $128,000-Less itemized deduction for state income taxes $3,500-Less itemized deduction for real estate taxes on 1st home $1,500-Less itemized deduction for mortgage interest on 1st home $7,800-Less itemized deduction for real estate taxes on 2nd home $1,100-Less itemized deduction for mortgage interest on 2nd home $10,200-Less personal exemption for Bob $2,800

Taxable income $101,100

Bob's 2008 federal income tax $26,022

The $1,100 Bob pays for real estate taxes on his 2nd home and the $10,200 he pays for mortgage interest on his 2nd home save Bob approximately $3,500 on his federal income taxes in 2008. Bob is so efficient, fulfilling his dream of owning a 2nd home and saving money on his taxes.

Mortgage Rates Fall to Lowest Level on Record

Bonnie Jessee, ABR 530 412 3984

Rates on 30-year mortgages fell to the lowest level on record for the second consecutive week after the Federal Reserve launched a new effort to assist the staggering U.S. housing market.

Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages dropped to 4.78 percent this week, from 4.85 percent last week.

It was the lowest in the history of Freddie Mac's survey, which dates back to 1971. Rates are down by more than a full percentage point from a year ago.

Mortgage rates fell dramatically over the winter and have fallen further after the Federal Reserve said last month it would buy $1.2 trillion in mortgage-backed securities and $300 billion in long-term government debt, which traditionally influences rates on 30-year home loans.

Lenders, however, have tightened their standards dramatically over the past year, so the best rates are available to those with solid credit.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

The average rate on a 15-year fixed-rate mortgage dropped to 4.52 percent this week, from 4.58 percent last week, according to Freddie Mac.

Rates on five-year, adjustable-rate mortgages fell to 4.92 percent, compared with 4.96 percent last week. Rates on one-year, adjustable-rate mortgages fell to 4.75 percent, from 4.85 percent.

The rates do not include add-on fees known as points. The nationwide fee averaged 0.7 point last week for all mortgages in Freddie Mac's survey except for one-year adjustable mortgages, which had an average fee of 0.6 point.

The trees on this property with Donner Lake views caught my attention. Not that the lake views didn't, but there's just something about this shade of green!

I love the texture of the trees. How they've survived the years and the "character" they express.

I love this tree and the way it proudly wears the scars of the years...

Original photo copyright: Tamara Perlman. Any duplication without express written consent is prohibited. Tamara Perlman Coldwell Banker San Rafael, Marin County, CA. Tamara represents buyers and sellers in Lake Tahoe, Truckee, and Napa CA. Please call: 530-550-1299 or email Tamara at tperlman@coldwellbanker.com for more information on either market or general real estate inquiries. Search listings at www.TamaraPerlman.com

Tahoe Donner was originally offered to mountain buyers in the 1970's. It is our largest subdivision, approx. 6000 home sites and there are still several hundred un-developed lots. Tahoe Donner has a multitude of amenities which make it a desirable location even through market shifts (marina at Donner Lake, downhill ski area, cross country skiing, golf, tennis, hiking, equestrian, workout/rec center with pools and hot tubs) . As you will see from the numbers, it hasn't suffered the way some markets have. This could be beneficial to buyers looking for a mountain getaway--and looking to the long term.

Currently we have 136 active single family listings. 14 of those are bank owned or short sale. Of the 14, seven have seller acceptance and are waiting for bank approval.

Since the first of the year, 25 TD homes have sold. 5 of them were bank owned or short sale.

Of the pre-2000 construction homes that have sold, they have averaged 90 days on the market and sold for an average of $294 per square foot. This reflects the construction of smaller homes prior to 2000. The post 2000 homes have averaged 141 days on market and $273 per square foot.

We have 16 properties in escrow/pending-4 of them bank owned or short sale. On average, the properties in escrow have been on the market 170 days and average asking price works out to $291 per square foot. Post 2000 homes that are pending have an average 153 days on market and $322. average per square foot asking price. Of the 5 newer homes in escrow, only one is a short sale.

If you'd like my charts and graphs, let me know. If you have any questions, don't hesitate to call me at 530-550-1299.

Tamara represents buyers and sellers in Lake Tahoe, Truckee, and Napa CA. Please call: 530-550-1299 or email Tamara at tperlman@coldwellbanker.com for more information on market or general real estate inquiries. Search listings at www.TamaraPerlman.com

Note: Data on this page is based on information from the Tahoe Sierra Board of Realtors, MLS. Due to MLS reporting methods and allowable reporting policy, this data is only informational and may not be completely accurate. Therefore, Coldwell Banker Residential Brokerage does not guarantee the data's accuracy. Data maintained by the MLS may not reflect all real estate activity in the market.

The Tahoe Sierra MLS data reflected in this spreadsheet covers the area from Truckee including Glenshire, Tahoe Donner, Donner Lake, Prosser Lakeview and to Martis Valley and Soda Springs. The yellow areas represent the peaks over the past five years.

RESIDENTIAL SINGLE FAMILY SALES

Note: Data on this page is based on information from the Tahoe Sierra Board of Realtors, MLS. Due to MLS reporting methods and allowable reporting policy, this data is only informational and may not be completely accurate. Therefore, Coldwell Banker Residential Brokerage does not guarantee the data's accuracy. Data maintained by the MLS may not reflect all real estate activity in the market.

Tamara represents buyers and sellers in Lake Tahoe, Truckee, and Napa CA. Please call: 530-550-1299 or email Tamara at tperlman@coldwellbanker.com for more information on either market or general real estate inquiries. Search listings at www.TamaraPerlman.com