If you are old enough to remember Rowan & Martin's Laugh-In… "You can bet your sweet bippy".
OK, granted with the fall in the economy and house values dropping as they have done, certain areas of the tax code have become somewhat ineffectual for most people. However, having said that, consider these points;
- The Purchase: Most of your expenses are not deductible with one major exception and that is interest. The IRS says you can deduct interest in the year that it is paid. If you purchase on any day other than the 1st of the month, you will be paying some interest. Look at line 901 on your HUD Statement. Further, the IRS says that loan discount points and origination fees are tax deductible to the buyer. And here is the best part – irrespective of who pays! This one is a real windfall and a bit unusual and unexpected.
- Mortgage Interest: Generally, this is deductible and in the beginning of your mortgage, your monthly repayment is largely interest, so this can start to add up over the year. There is another deduction, but in the current economy, you may find it useful yet it is worthwhile noting for future years. You can also claim a deduction for interest on an additional $100,000 of mortgage debt used for any purpose. This is what's know as your Home Equity Loan and I probably don't need to explain to you why this one is a little redundant at the moment, so keep it in the back of your mind for later.
- The Sale: Here is the good news – couple's can sell their principal residence and earn up to $500,000 and pay no federal tax whatsoever (single's get $250,000) And the bad news at the moment, in this economy that is not likely to help many people. However, in time, as the economy recovers, this is another huge benefit of buying a home. Most states recognize the federal exclusion, so you put the cash away tax-free. You don't have to re-invest, you don't have to be age 55, and you can do this every two years forever.
Disclaimer: Please note, this is not meant as Tax or Financial advice and as always you should consult your Tax Professional before making any decisions.
Now that you have some ideas on what income tax advantages there might be for you, let's look at the market update for this month in Towngate.
Currently there are 19 active listings available for you to choose, ranging from very comfortable 3 bedroom homes up to spacious 5 bedroom homes. On average, these homes are being offered at the $308,500 bracket giving you a $128 / sq ft price. Knowing this square footage price is a great way to make estimates as a rule of thumb, but we at The Willard Realty Team are always available to help you work out the finer details.
Since January 1st there has been a total of 19 closings with an average sale price of $240,467. The lowest selling property during this period sold for $165,375 while the top of the market closed at $328,000. More recently, in the last 30 days, we have seen 7 closings and these have averaged a sale price of $241,071 showing very little movement in prices from the year to date figures.
Get ahead of the crowd - be the first to hear about new listings and sign up for our email service. Let us do the work for you and keep you informed via email. You can opt out at any time. Or perhaps you are thinking of selling. Then you will want an analysis of your approximate home value delivered direct to your inbox so you can make an informed decision.
Call now on (954) 745-4735 and speak with Justin or Claudia Willard for first hand advice.
Another great price reduction on 
Reduced to $320,000, this beautiful one-story pool home. Close to I75 and shopping.
