Dawsonville, GA

As the leading advocate for homeownership, the National Association of REALTORS® aggressively supports the mortgage interest deduction (MID) because it helps people become and remain homeowners. The MID has been part of the federal tax code since it was first enacted in 1913. A home purchase - the largest investment most families will ever make - builds family wealth, provides tax revenues for local governments and stimulates growth in all housing-related industries. According the most recent IRS tax return data available, 63 percent of the families who claim the MID earn between $50,000 and $200,000 per year. While in any particular year only about one-third of taxpayers itemize, of the taxpayers who do itemize deductions, more than 81 percent take the MID.

NAR strongly opposes any attempts to alter the current tax treatment of mortgage interest. Any changes to the mortgage interest deduction could erode the value of homes and homeownership, effectively closing the door on the American dream. An NAR survey of home buyers found that both first-time buyers and repeat buyers ranked the desire for tax incentives as an important reason to buy. People usually don't buy homes because of the MID. They buy homes to satisfy social, family and personal goals. The MID does, however, facilitate homeownership by reducing the carrying costs of ownership.

The MID remains the most effective tax incentive to expand homeownership. Homeownership provides important social and economic benefits. It is the cornerstone of a healthy community, the basis for positive community involvement and a family's first step on the ladder to wealth.

The tax deductibility of interest paid on mortgages is both a powerful incentive for homeownership and one of the simplest provisions in the tax code. It should not be targeted for change. NAR has been both vocal and successful in protecting the MID, yet proposals to eliminate it or scale it back continue to surface in Congress. Policymakers and voters have a legitimate desire to simplify the tax system, but tampering with the deductions for mortgage interest and property tax would be unwise, if not disastrous. Current law permits deductions of the interest paid on mortgage debt of up to $1 million on a primary residence and one additional residence. In addition, the interest paid on home equity loans of up to $100,000 may be deducted.

NAR opposes any tax reform plan, including a flat tax plan, that does not retain the deductibility of mortgage interest. NAR also opposes any effort to convert the MID from a deduction to a tax credit. A flat tax is a tax system in which all earned income is taxed. It has no deductions or exclusions. A single rate of tax applies to all individuals, regardless of income level. It's called a flat tax because this single rate applies to all income. Flat tax and other tax code simplification plans threaten the MID. In the past, flat tax proposals have come before Congress as part of the ongoing debate over how best to reform the current tax system.NAR believes true reform can be achieved only through legislation that simplifies regulations and moves to a lower overall tax burden. Tax reform proposals that result in unfair distribution of present tax levels, heavier total tax burdens, or disruption of markets are not desirable. NAR will remain vigilant in opposing any tax reform plan that excludes the deductibility of mortgage interest.

Information from www.realtor.org

I didn't watch the awards show last evening. However, I did pause there for a few moments to see 2 awards given for best costume and best art design. The show seemed a bit boring and trivial to me, no offense to you if you are a die hard awards show fan.

I believe that people should be free to create movies, and have entire evenings dedicated to awarding the participants for their achievements. I also believe that if an entertainer/actor earns millions of dollars in their pursuits, it is theirs to do as they please. I love to hear stories of these people giving back to worthy causes and providing much needed dollars to help those in need. And whether they hoard or give, it's really none of my business. This is a free country.

Having said that, I couldn't help but wonder how many millions were spent on this grand affair? How many thousands were spent on gowns that will only be worn one time? How many millions were spent on lavish parties and jewels, and shoes.

That's where the trivial part came to my mind. I was thinking about the news report last evening that 77 people in Atlanta lost everything they owned when their apartment building went up in fire on Sunday morning. I was betting that for the price of 2 gowns, these 77 people could probably have replaced their entire belongings and started over.

My mind recalled that about 3 weeks ago, I totaled the top 5 box office hits for the weekend, and the total was over $100 million dollars. You probably heard the individual figures on the news, right after some lengthy report about how many more hundreds of people were laid off somewhere and how many more homes were foreclosed and how unemployment compensation was running out.

My question is, if America has $100 million dollars extra to spend going to a movie in ONE weekend, are we really in that much trouble economically? Maybe the answer is yes, and our priorities are awry.

I spent some time this morning deciding what my priorities really are and what's the most important thing I need to accomplish today, tomorrow, this month, and this year. I'm glad I watched a few moments of the show, it helped me to gain some perspective into my own self.

What are your priorities today? Are you making every day count?

Do you feel confused about tax credits? Did it seem to you that every day of the week last week produced a different description of the facts? It's time to clear up the confusion!

From careful examination of the facts, I believe I can truthfully explain to you what the tax credits for homebuyers in the new stimulus plan really means to you.

The Stimulus Plan contains a new tax credit for first-time homebuyers. Essentially, first-time homebuyers within certain income limits who purchase a home in 2009 before December 1, 2009 will receive a tax credit of up to $8,000.

The program is similar to the $7,500 tax credit which applied to home purchases made in 2008 after April 9.

While the Senate version originally included a $15,000 tax credit for all homebuyers, to lower the cost of the Stimulus Plan the final version of the Plan contained this smaller tax credit. This tax credit is applicable only to first-time homebuyers.

To qualify as a first-time home buyer as defined in the programs, the purchaser (and the purchaser's spouse) may not have owned a home in the three years prior to the purchase date of the home. Single family homes qualify for the program. The home must be the primary residence.

Both tax credits are subject to the same adjusted gross income (AGI) limitations (full credit for AGI less than $75,000 single/$150,000 joint, phased out for AGI up to $95,000 single/ $170,000 joint).

The amount for either credit is the lesser of 10% of the home purchase price or $7,500 or $8,000, as applicable.

While a purchaser still owns the home, the $7,500 credit must be repaid in equal payments over a period of 15 years, starting with the 2010 tax filing. The new $8,000 credit will not need to be repaid. Again, the $7,500 credit needs to be repaid, while the $8,000 credit does not!

Upon sale of the home, any portion of the $7,500 credit not yet repaid is due in full. No portion of the $8,000 credit is due upon sale of the home, if the home is owned for more than three years. If the home is sold within the first three years, the full amount of the credit is due upon sale.

The $7,500 credit was not available to any purchaser utilizing state/local revenue bond money to help finance the home purchase. There is no such restriction on the $8,000 credit.

Under both the $7,500 and the $8,000 programs, the credit will be claimed on the purchaser's income taxes. Any amount in excess of taxes owed will be refunded to the purchaser.

The bottom line:

If you were a first time home buyer and purchased a home between April 9, 2008 and December 31, 2008 you will receive the $7,500 tax credit that must be repaid. (providing all other conditions were met)

If you are a first time homebuyer who purchases a home between Jan 1, 2009 and Dec 1, 2009 you will receive an $8,000 tax credit that does not have to be repaid. (providing all other conditions were met)

It's easy to be confused with all of the information. The easiest way to find out exactly what you qualify for is to contact a professional!

Call Kimberly Wilson, Your Dawsonville Real Estate Specialist today!

As a member of the Home Builders Association, we have been discussing and promoting the bill introduced by Sen. Johnny Isakson, R-Ga., to advance a $15,000 homebuyers tax break, with the intent to help revive the housing industry.

I am so happy to report that the Senate voted Wednesday night to give a tax break of up to $15,000 to homebuyers. The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit. (Current law provides for a $7,500 tax break for the purchase of new homes only)

Of course this bill could be changed as the measure makes its way through Congress over the next 10 days or so, but it's baby steps in the right direction. I realize that it's not going to help those who are struggling now to keep their homes. I think we all have realized by now that there is no miracle cure for the housing crises. What this will do is allow and even influence buyers to purchase homes. It will be too good of a deal to pass up.

More importantly, there are items being introduced on a State Level to provide additional stimulus and help get the housing market moving with rapid speed in the Georgia market. I will be attending a Legislative Luncheon on the 18th to support some of these measures, and our local representatives. Stay tuned for updates. There is GOOD NEWS on the horizon.

I am committed to keeping you informed, and providing you with the most current information to help you make decisions regarding the purchase or sale of your home. Contact me for more information!

Kimberly Wilson, Your Dawsonville Real Estate Specialist!

This is my first day back after a wicked 'bout with the flu. It hit me suddenly and without warning. Once I finally relented to the fact that I was sick, the only thing I could think about was that TV commercial where the doctor tells the woman she has the flu and she's sorting through her day-planner looking for somewhere to schedule it. She finally replies to the doctor that she doesn't have any room in her schedule for the flu.

Life is like that isn't it? You're going along all wrapped up in your day to day business and then, WHAM! , something unexpected and unplanned causes you to put everything on hold. Your first response is to fight it, get angry, or 'pitch a hissy fit'. But eventually you have to give in and deal with it. You realize that what you thought was so important really wasn't that important after all. People will wait, listing appointments can be re-scheduled, buyers can be referred out, and it's ok if the newsletter is a week late.

What I learned is that if you aren't well, you're no good to anybody. My birthday is coming up this week, which has given me cause to reflect on my age and my health. One of the changes I had planned to make in 2009 was to take charge of my health and stop procrastinating and pretending I was still 20. I'm going to make a financial investment in 'ME' this year. I'm re-evaluating financial priorities. For example, having cable television is not as important as me being well and fit. As a matter of fact, it's probably one of the reasons I am not fit. It's too easy to be a couch potato if you have 55 channels to choose from.

Eating out has been banned from the household. Not to mention the actual cost of eating out, the toll it takes on your health is outrageous. You can better manage your health and well being if you prepare your own food. If you plan ahead, it doesn't take that much time to prepare a quick and healthy meal. If you make a little extra, you can even take care of your lunch the next day.

Wishing you health and happy days! Take Care of Yourself!