(Part four of a five part series)
You can’t beat experienced lenders/brokers! I mean the people you deal with face-to-face! Not the institutions.
Professionalism is what you are looking for here. The way they handle themselves, the words they pick, are they clear?, their presence, dress, grooming! Yes, you might say - huh! This is ALL important. If they have a sloppy appearance, demeanor - the transaction could be a rough ride.
Meet with several! Get to know this person - he/she can make or break the transaction!
The person you choose should know - DAILY - what is happening in the world of money. There is so much that drives the financial world quickly these days. They are not miracle workers, they are human. They should have back-up, a ‘team’ that you get familiar with. This person should give you the feeling of confidence and security that YOUR interests in this very important investment in your life will be professionally handled. How do they respond to questions? Can you easily understand them, the financial lingo? Are they speaking comprehendible, in shortcut speech? You should feel as though you are building a professional relationship here. Trust, confidence, knowledgeable, honesty. If you leave with anything less - keep looking! Call me, I work with several Great ones!
Showing posts with label saving money. Show all posts
Showing posts with label saving money. Show all posts
Monday, March 8, 2010
Monday, June 1, 2009
Proposition's 60 and 90
Just recently I have had clients ask for both themselves and their parents about the details of these two propositions and a lot of the particulars on how each one works. Since each has its own intricacies and each person/family has theirs, I advise to consult with a tax expert so you do not miss a vital component. This can be a substantial tax savings with little effort, as long as all the steps are followed.
The following are the Propositions and for further information and discussions on them go to: http://www.boe.ca.gov/proptaxes/faqs/propositions60_90.htm
You can NEVER get too much information!
What are Propositions 60 and 90?
Propositions 60 and 90 are constitutional amendments passed by California voters that provides property tax relief for persons aged 55 and over. Implemented by section 69.5 of the Revenue and Taxation Code*, it allows these persons, under certain conditions, to transfer a property's factored base year value from an existing residence to a replacement residence.
Typically the property tax of a newly purchased or constructed residence is based on its current market value upon change of ownership. However, the provisions of Propositions 60 and 90 may result in substantial tax savings since it allows the property tax of the original (sold) property to be transferred to the newly purchased or constructed home if eligibility requirements are met.
* Section 69.5 also sets forth the provisions of Proposition 110 which allows the transfer of a base year value for severely and permanently disabled persons. Except for the disability factor, the qualifications for Propositions 60/90 are same as Proposition 110.
What is the difference between Proposition 60 and Proposition 90?
Proposition 60 allows transfers of base year values within the same county (intracounty). Proposition 90 allows transfers from one county to another county in California (intercounty) and it is the discretion of each county to authorize such transfers. As of January 2007, only seven counties have passed an ordinance authorizing intercounty transfers; however, it is recommended that you call your assessor for verification as it could change at any time. See question #17 for a list of the seven counties.
Back to Top of Page
What are the eligibility requirements for Propositions 60/90?
You, or a spouse residing with you, must have been at least 55 years of age when the original property was sold.
The replacement property must be your principal residence and must be eligible for the homeowners' exemption or disabled veterans' exemption.
The replacement property must be of equal or lesser "current market value" than the original property. The "equal or lesser" test is applied to the entire replacement property, even if the owner of the original property purchases only a partial interest in the replacement property. Owners of two qualifying original properties may not combine the values of those properties in order to qualify for a Proposition 60 base-year value transfer to a replacement property of greater value than the more valuable of the two original properties.
The replacement property must be purchased or built within two years (before or after) of the sale of the original property.
To receive retroactive relief from the date of transfer, you must file your claim within three years following the purchase date or new construction completion date of the replacement property.
Your original property must have been eligible for the homeowners' or disabled veterans' exemption either at the time it was sold or within two years of the purchase or construction of the replacement property.
The original property must be subject to reappraisal at its current fair market value at the time of sale, unless the buyer(s) of your original property also qualify the property as a replacement property for a base year value transfer due to disaster relief or a base year value transfer for a severely and permanently disabled person. Therefore, most transfers between parents and children will not qualify.
This is a one-time only benefit. Once you have filed and received this tax relief, neither you nor your spouse who resides with you can ever file again, even upon your spouse's death or if the two of you divorce. The only exception is that if you become disabled after receiving this tax relief for age, you may transfer the base year value a second time because of the disability, which involves a different claim form.
If I qualify for Proposition 60 benefits, do I still need to file for a homeowners' exemption on the replacement property?
Yes. The exemption is not granted automatically and must be filed for separately.
The following are the Propositions and for further information and discussions on them go to: http://www.boe.ca.gov/proptaxes/faqs/propositions60_90.htm
You can NEVER get too much information!
What are Propositions 60 and 90?
Propositions 60 and 90 are constitutional amendments passed by California voters that provides property tax relief for persons aged 55 and over. Implemented by section 69.5 of the Revenue and Taxation Code*, it allows these persons, under certain conditions, to transfer a property's factored base year value from an existing residence to a replacement residence.
Typically the property tax of a newly purchased or constructed residence is based on its current market value upon change of ownership. However, the provisions of Propositions 60 and 90 may result in substantial tax savings since it allows the property tax of the original (sold) property to be transferred to the newly purchased or constructed home if eligibility requirements are met.
* Section 69.5 also sets forth the provisions of Proposition 110 which allows the transfer of a base year value for severely and permanently disabled persons. Except for the disability factor, the qualifications for Propositions 60/90 are same as Proposition 110.
What is the difference between Proposition 60 and Proposition 90?
Proposition 60 allows transfers of base year values within the same county (intracounty). Proposition 90 allows transfers from one county to another county in California (intercounty) and it is the discretion of each county to authorize such transfers. As of January 2007, only seven counties have passed an ordinance authorizing intercounty transfers; however, it is recommended that you call your assessor for verification as it could change at any time. See question #17 for a list of the seven counties.
Back to Top of Page
What are the eligibility requirements for Propositions 60/90?
You, or a spouse residing with you, must have been at least 55 years of age when the original property was sold.
The replacement property must be your principal residence and must be eligible for the homeowners' exemption or disabled veterans' exemption.
The replacement property must be of equal or lesser "current market value" than the original property. The "equal or lesser" test is applied to the entire replacement property, even if the owner of the original property purchases only a partial interest in the replacement property. Owners of two qualifying original properties may not combine the values of those properties in order to qualify for a Proposition 60 base-year value transfer to a replacement property of greater value than the more valuable of the two original properties.
The replacement property must be purchased or built within two years (before or after) of the sale of the original property.
To receive retroactive relief from the date of transfer, you must file your claim within three years following the purchase date or new construction completion date of the replacement property.
Your original property must have been eligible for the homeowners' or disabled veterans' exemption either at the time it was sold or within two years of the purchase or construction of the replacement property.
The original property must be subject to reappraisal at its current fair market value at the time of sale, unless the buyer(s) of your original property also qualify the property as a replacement property for a base year value transfer due to disaster relief or a base year value transfer for a severely and permanently disabled person. Therefore, most transfers between parents and children will not qualify.
This is a one-time only benefit. Once you have filed and received this tax relief, neither you nor your spouse who resides with you can ever file again, even upon your spouse's death or if the two of you divorce. The only exception is that if you become disabled after receiving this tax relief for age, you may transfer the base year value a second time because of the disability, which involves a different claim form.
If I qualify for Proposition 60 benefits, do I still need to file for a homeowners' exemption on the replacement property?
Yes. The exemption is not granted automatically and must be filed for separately.
Monday, May 11, 2009
Golden Opportunities State/ Fed Tax Savings/incentives
The Time of Golden Opportunity is now,
don't miss out!
If you haven't been keeping your ears to all the financial and tax changes going on in the last few months, waiting for things to settle out, which quite honestly could take another chunk of time, read this!
As of now, some of the significant benefits to purchasing a home whether in foreclosure or not are:
The first-time home buyer tax credit,
which Congress in February increased to $8,000 from $7,500 and eliminated the repayment requirement.
The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.I only wish I could use this but it is only for those that, haven't owned a property for three years. You also must retain the property as your primary residence for three years and the most important item, you have to qualify within the set guidelines.
There is also, in the state of California, a property tax reduction. Most counties are re-assessing properties bought from 2003 to present and adjusting the taxable values downward. It will be reflected in the tax bills and a notice of such will be mailed to affected property owners.
State Tax Credit On NEW Homes
How much is the state tax credit?The state tax credit is for $10,000 or 5 percent of the purchase price of a newly built home, whichever is less. The home must be the principal residence of the buyer, and the sale must close between March 1, 2009 and March 1, 2010.
How does the tax credit work?The credit will be provided in equal amounts (up to $3,333) per year, over three successive tax years, beginning with the year the purchase is made.
Will I receive the credit if I buy an existing home? The credit is only for the purchase of a newly built home that has never been occupied. That is because building a new home generates more tax revenues than the credit will cost the state.
Are there any other restrictions?The taxpayer must live in the home as their principal residence for at least two years. If he/she does not, he/she will have to repay the credit.
How much money is available under the program?The law limits the total amount of credits that can be claimed to $100 million. Credit reservations will be allowed on a first-come, first-served basis. It is likely that the full amount will be exhausted this year, so prospective buyers should move quickly.
Can the credit be used in conjunction with the recently enacted federal tax credit?Yes. If you buy a new home between March 1 and Dec. 31 and are a first-time homebuyer, you can take advantage of both the $10,000 state credit and the $8,000 federal tax credit.
"Green" Mortgage Rebates
In purchasing a home, foreclosed or not, there are programs offered by lenders that rebate the borrower up to $35,000. of their loan, when energy efficient and/or sustainable products/materials are used in upgrading the property. Call me, I will be happy to refer you to some significant lenders.
California Help for FIRST-TIME Home buyers.
To help provide first-time home buyers with peace of mind when purchasing a home, the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) Housing Affordability Fund is offering a new mortgage protection program to first-time home buyers. Through the C.A.R. Housing Affordability Fund’s Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit. For more information including eligibility requirements and information on applying for the C.A.R.H.A.F. Mortgage Protection Program, please visit www.car.org/aboutus/hafmainpage/carhafmortgageprotection/
Buying Now vs. Renting
Given recent changes in home prices and the current low mortgage rate climate, there have been significant gains in affordability for prospective first-time homeowners. Earlier in 2009, a provision in the Stimulus Bill provided for a first-time Homebuyer Tax Credit of 10 percent of the purchase price of the home up to $8,000. The CALIFORNIA ASSOCIATION OF REALTORS® analyzed the difference between renting and buying a home in light of recent market and policy developments. Housing costs and tax implications of buying a home and renting a home were computed as a part of the analysis.
Assumptions:
• The household currently rents a 3-bedroom, 2-bathroomapartment at the prevailing rent and purchases rental insurance.The prevailing rent for a 3-bedroom, 2-bathroom apartment was$1,855 per month (Q4 2008, latest available). The household purchases renter’s insurance at a cost of $247 per year or $20 per month.• The household considers the purchase of a home at the entry-level price, which is 85 percent of the statewide median price.The monthly cost of housing is equal to the mortgage payment,taxes, and insurance.• The entry-level home is priced at $248,000, or 85 percent of theprevailing median-priced home of $291,800.• The monthly payment including taxes and insurance (PITI) wascalculated using a 10 percent down payment, a 40 percentqualifying ratio, the prevailing one-year ARM mortgage rate,and a 1.038 percent assumed insurance costs and propertytaxes. The monthly PITI payment under these assumptionsis $1,630.
To seach for available homes in the Santa Cruz or Lake Tahoe Areas go to my website: www.BestSantaCruzProperties.com
For Santa Cruz Login at the top of web page.
For Lake Tahoe and Western Nevada go to "sidebar" and scroll down to MLS search areas.
don't miss out!
If you haven't been keeping your ears to all the financial and tax changes going on in the last few months, waiting for things to settle out, which quite honestly could take another chunk of time, read this!
As of now, some of the significant benefits to purchasing a home whether in foreclosure or not are:
The first-time home buyer tax credit,
which Congress in February increased to $8,000 from $7,500 and eliminated the repayment requirement.
The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.I only wish I could use this but it is only for those that, haven't owned a property for three years. You also must retain the property as your primary residence for three years and the most important item, you have to qualify within the set guidelines.
There is also, in the state of California, a property tax reduction. Most counties are re-assessing properties bought from 2003 to present and adjusting the taxable values downward. It will be reflected in the tax bills and a notice of such will be mailed to affected property owners.
State Tax Credit On NEW Homes
How much is the state tax credit?The state tax credit is for $10,000 or 5 percent of the purchase price of a newly built home, whichever is less. The home must be the principal residence of the buyer, and the sale must close between March 1, 2009 and March 1, 2010.
How does the tax credit work?The credit will be provided in equal amounts (up to $3,333) per year, over three successive tax years, beginning with the year the purchase is made.
Will I receive the credit if I buy an existing home? The credit is only for the purchase of a newly built home that has never been occupied. That is because building a new home generates more tax revenues than the credit will cost the state.
Are there any other restrictions?The taxpayer must live in the home as their principal residence for at least two years. If he/she does not, he/she will have to repay the credit.
How much money is available under the program?The law limits the total amount of credits that can be claimed to $100 million. Credit reservations will be allowed on a first-come, first-served basis. It is likely that the full amount will be exhausted this year, so prospective buyers should move quickly.
Can the credit be used in conjunction with the recently enacted federal tax credit?Yes. If you buy a new home between March 1 and Dec. 31 and are a first-time homebuyer, you can take advantage of both the $10,000 state credit and the $8,000 federal tax credit.
"Green" Mortgage Rebates
In purchasing a home, foreclosed or not, there are programs offered by lenders that rebate the borrower up to $35,000. of their loan, when energy efficient and/or sustainable products/materials are used in upgrading the property. Call me, I will be happy to refer you to some significant lenders.
California Help for FIRST-TIME Home buyers.
To help provide first-time home buyers with peace of mind when purchasing a home, the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) Housing Affordability Fund is offering a new mortgage protection program to first-time home buyers. Through the C.A.R. Housing Affordability Fund’s Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit. For more information including eligibility requirements and information on applying for the C.A.R.H.A.F. Mortgage Protection Program, please visit www.car.org/aboutus/hafmainpage/carhafmortgageprotection/
Buying Now vs. Renting
Given recent changes in home prices and the current low mortgage rate climate, there have been significant gains in affordability for prospective first-time homeowners. Earlier in 2009, a provision in the Stimulus Bill provided for a first-time Homebuyer Tax Credit of 10 percent of the purchase price of the home up to $8,000. The CALIFORNIA ASSOCIATION OF REALTORS® analyzed the difference between renting and buying a home in light of recent market and policy developments. Housing costs and tax implications of buying a home and renting a home were computed as a part of the analysis.
Assumptions:
• The household currently rents a 3-bedroom, 2-bathroomapartment at the prevailing rent and purchases rental insurance.The prevailing rent for a 3-bedroom, 2-bathroom apartment was$1,855 per month (Q4 2008, latest available). The household purchases renter’s insurance at a cost of $247 per year or $20 per month.• The household considers the purchase of a home at the entry-level price, which is 85 percent of the statewide median price.The monthly cost of housing is equal to the mortgage payment,taxes, and insurance.• The entry-level home is priced at $248,000, or 85 percent of theprevailing median-priced home of $291,800.• The monthly payment including taxes and insurance (PITI) wascalculated using a 10 percent down payment, a 40 percentqualifying ratio, the prevailing one-year ARM mortgage rate,and a 1.038 percent assumed insurance costs and propertytaxes. The monthly PITI payment under these assumptionsis $1,630.
To seach for available homes in the Santa Cruz or Lake Tahoe Areas go to my website: www.BestSantaCruzProperties.com
For Santa Cruz Login at the top of web page.
For Lake Tahoe and Western Nevada go to "sidebar" and scroll down to MLS search areas.
Subscribe to:
Posts (Atom)