In my last article, I provided the details that we’ve received about the Stimulus Bill’s 1st Time Home Buyer’s Tax Credit. At the conclusion, I mentioned that potential users of this credit should check with their accountant or CPA regarding how it can apply to them.
In speaking with some young couples since, we also discussed further potential advantages for them. So add these questions to the list you discuss with your accountant …
- Will I be able to adjust my paycheck withholding amount to reduce the refund I receive next year in order to have that money to spend during 2009 … and NOT give the IRS use of that money interest-free?
- How much will my Schedule A deductions be for closing costs, property taxes, and mortgage interest?
- If I qualify for a refund on my 2009 taxes, what will my added benefit be if I use that money to add to my IRA account?
- Regarding the mortgage interest deduction, how much better off am I to buy “sooner rather than later” in order to have more months of mortgage interest deduction?
Depending on your unique financial situation, you may find that your net discretionary income might actually increase when you buy a home versus renting and getting no deductions for the rent payment. Plus, you’ll be building equity in your own property rather than your landlord’s.
When I purchased my first home 22 years ago, and had a “regular paycheck”, I found that after adjusting my withholding to allow for the extra homeowner tax deductions, I actually had more “pocket money” than I did as a renter. But my strategy was to minimize the amount I received as an IRS refund because I didn’t like giving them use of “my” money interest-free. Your strategy might be different.
Again, be sure to discuss this with your accountant, because you want to make a GOOD decision when considering if this is the right time for you to buy your first home.
Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
Well, our illustrious politicians have done their dastardly deed but does anyone feel comfortable that Congress REALLY knows what they agreed to or whether it will “stimulate” the economy. Many said they weren’t able to read the stimulus package because they received it too late to read the thousands of pages. They’re mostly lawyers who always advise regular citizens to never sign something they haven’t read. Guess that advice doesn’t apply to them.
What took place this past week reminded me of dachshunds. Anyone that has ever owned a doxie knows that when “something un-normal” is happening, they dash around as fast as their little legs will carry them, barking-barking-barking. They know “something” needs to be done, but they’re not sure what. So they bark … and bark …and bark … hoping someone else takes care of the problem.
Since this tax credit only benefits 1st time buyers, we’re not sure how much effect it will have. Of course, the banks will need to free up the TARP money that was given to them and actually use it to grant mortgages to these 1st time buyers. (Shame on Congress for not making the banks accountable for the money they were given.)
Traveling around the U.S.
Forbes just published their “Top 10 Most Miserable Cities” list. I was glad that Columbus didn’t make the list, but I feel a little sorry for those cities that did. As cities are struggling with their budgets in this economy, making the list certainly must be a thorn in their side.
In my pre-Realtor® life, I traveled quite a bit in my corporate job. I’ve been to almost all the mainland states. Some of those I haven’t been to are states I’m OK with not visiting, such as ND, SD, and Idaho. Three other states that I would like to see, but haven’t are Maine, NH and Vermont. I’ve also been to most of the provinces in Canada. I liked Toronto, Vancouver and Montreal much better than Calgary and Winnipeg. I made the trip to Winnipeg in the winter. Br-r-r-r! Any city where the cars have electric cords hanging out of their grills isn’t for me.
I enjoyed seeing Seattle, especially seeing the missing top of Mt St Helens as we flew into the airport. I was probably most fascinated with Oregon because it was the biggest surprise. Its terrain is like several states all crammed into one … even a desert that looks just like AZ. I’ve never been a big fan of Florida – just don’t care for the humidity. I liked AZ so much that I moved to Tucson for 18 months. I spent several days in Houston in JULY! Now THAT was miserable humidity!
I was surprised to see the Alamo in San Antonio. It’s very tiny and nothing like the one you see in John Wayne movies. The same goes for the “grassy knoll” in Dallas. It’s a very small, nondescript area in the downtown, but definitely was a moving experience.
I was sorry to see Chi-town make the ‘miserable list’. I’ve always enjoyed all my trips there, and much prefer it to New York. Aside from the politicians, I also enjoyed DC with all its history. Another city I didn’t care for was LA. Just took too long to go anywhere with all the freeway traffic. However, driving from there through Palm Springs to Yuma was an interesting trip with the Salton Sea and a nearby silo with a line 100 ft up that said “sea level”. The miles and miles of windmill farms outside LA are fascinating.
You know, we live in quite an outstanding country. Come to think of it … we’re pretty lucky to be able to live here.
Copyright © 2009. Elaine Reese, Real Living HER. Reproduction of any portion of this blog post or the images is prohibited by the Digital Millennium Copyright Act. If this post is being viewed on any site other than www.ReesesPiecesOfRealEstate.com then the material has been stolen without permission. Violators will be reported.
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