The government has put into place a number of tax-saving laws for 2009 that require you to act before the year is up. Some to consider are:
•- You can use assets in a 529 without penalty to purchase computers for educational use.
•- If you do not contribute to a Roth IRA because you are above the income limits, you can make a non-deductible IRA contribution this year and convert it to a Roth next year when the income limitation for conversions is no longer in effect.
•- You can deduct more educational expenses--the American Opportunity Tax Credit has grown from $1,800 to $2,500.
•- There are tax credits for energy efficient home improvements, alternative energy products and hybrid vehicles.
There are also special provisions for retirement, small business stock ownership, and sales tax for new car purchases. For more details on these, and some end-of-year tips on balancing your investments, click on Tax Tips 2009.
Two mortgage options to consider:
•1) 2009 was the year of the refinance. Normally any points you paid on a refinance must be deducted over the life of the loan. However if your refinance replaced a mortgage that was itself a refinance you can deduct the balance of the points you paid on the original refinance.
•2) If you pay your January mortgage payment in December, you accelerate January's interest into your total 2009 interest deduction. Next year you will have less interest to deduct, so carefully consider your situation.
A few END-OF-THE-DAY questions for YOU!
Did I make someone giggle, smile or laugh today?
Did I take the time to really listen to someone today, with rapt attention, as if nothing else mattered in that precious moment but the words they spoke and the look in their eyes?
Did I allow myself to focus on all the blessings in my life today instead of contemplating the things I don't have?
Did I take a moment to imagine what I would like to experience in my life, if for no other reason than in the imagining, is the living, and in the living, comes the joy and delight?
Did I let go today, let go of resentments and unforgivingness that I have been holding onto, all the while realizing that another person may be wounded too and struggling with their own pain?
Did I keep my word today, no matter how simple a promise I may have made, knowing it meant a whole lot to someone else?
Did I make a conscious choice just to be happy today, no matter what is happening in my own life, just for the next moment, and the next moment and the next?
Did I stop caring about what other people think of me, and give myself permission to be who I am regardless of their good opinion of me or not? Did I set myself free today just by doing that?
Was I successful in noticing and appreciating the bounty before me wherever I went or was I just too busy or lost in my own thoughts to notice?
Did I contribute something beautiful to the world today? A new creation of some kind, a poem, a dinner, a dance?
Was I kind today to anyone or anything that crossed my path, no matter how trivial or how monumental? Did I give away my heart?
Is one person richer because of me today, because of my presence on the planet, my essence, my decision to keep on going no matter what?
Did I learn something new today, something about life, something about myself, something about another that I didn't know before?
Did I let go of my attachment to being right today, and open my mind to the possibility of another way, without judgement?
Will someone sleep better tonight because of me? Will they awaken in the morning believing in themselves again, and walk with their head held high?
If today was to be my last day on the planet, would I feel happy about how I lived it?
Veronica Hay
Veronica Hay is the author of In a Dream, You Can Do Anything.
Homeowners: Do Market Opportunities and a New $6,500 Tax Credit Make it a Good Time To Sell?
A new revision to the recently extended Homeowner's Tax Credit may be a window of opportunity for some home owners who have been wanting to sell their home, whether to move up or to downsize, but have adopted a "hunkering down" mentality.
The new tax credit is for current homeowners: if you have owned and resided in your home for at least 5 consecutive years out of the past 8 years, you can qualify for up to a $6500 tax credit.
If you combine this new tax credit with historically low interest rates and great values in the market place, it might be a really opportune time to make your move. However, this tax credit is only for a limited time and waiting too long may cause you to miss out on market opportunities that could benefit you. Each person's situation is different. I will be happy to provide a no-obligation consultation to discuss your home's current value as well as the prices of homes in your target range and explain in more detail the stipulations on the tax credit. Don't look back and wish you had sold your home instead of waiting. There's no obligation to explore your options. Call me to schedule a meeting today.
512.680.5835
$8,000 Tax Credit Extended to April 30, 2010! NOW Is the Time to Make Your Move.
The 2009 First Time Home Buyers Tax Credit, which was set to expire November 30, 2009, has been extended. The tax credit has been expanded with new changes that will further benefit qualified home buyers (anyone who have not purchased a home within the last three years):
· The new expiration date is April 30, 2010 giving homebuyers over 5 more months and into the spring house-buying season to find their home, get loan approval, and close the transaction.
• In addition, income limits have been raised from $75,000 to $125,000 for single buyers, and for married couples the income limit has been raised from $125,000 to $225,000.
With historically low mortgage rates and still low (but rising) prices, this is a good time to make your move. Many buyers who did not take advantage of the market conditions months ago are wishing they had acted. Don't miss out. Call me to set up a free consultation to help you explore and maximize this opportunity.
Call me today! 512.680.5835
The Homebuyers Tax Credit jumped its last hurdle yesterday, as both the House and the Senate have passed the bill and it now awaits President Obama's signature, expected today or tomorrow. And while we have been expecting this to happen for some time and with all the changing details, let's go over the actual Bill. For First Time Homebuyers or those who have not owned a home within 3 years, the tax credit remains at $8,000, with income restrictions maxing out at $125,000 for singles and $225,000 for couples. Current Homeowners - those defined as having owned a home for five or the previous eight years - can now also take advantage of a credit, with the slightly lesser amount of $6,500, with the income restrictions the same as described above. To qualify for the new program, purchase agreements need to be signed by April 30, 2010 and close by June 30, 2010. For those in our armed forces, persons stationed outside the United States on official duty for 90 days during the period from January 1, 2009 and before May 1, 2010 will have eligibility extended for binding contracts signed before May 1, 2011 and closed before July 1, 2011.
On the backside of the tax credit extension, that we need to be aware of, are interest rates. Remember the Fed's Mortgage Backed Security Program? $1.25 Trillion was allotted to help keep interest rates low. Currently the Fed has purchased $977B, which leaves $273B to be purchased over the program's remaining 22 weeks. That's an average of about $12.4B in purchases each week, much less than the $20-25B the Fed has been buying weekly since the program begun, and before the rationing started. It is obvious that rates will trend high due to the reduced Fed buying but when there is no longer Fed buying then we could see rates jump 5%-1.5% overnight.
I am a realtor with over 10 years of experience in Austin. I enjoy helping people to find their perfect home. I specialize in Central, West, and Southwest Austin.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
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