Ever since the “American Recovery and Reinvestment Act of 2009 (aka The Stimulus Bill) was passed in February, many homebuyers have been trying to figure out what this means for them. Sure an $8,000 tax credit is great, but how do you get and how do you qualify? Read more

There is a bill, a stimulus bill, up on Capital Hill, that might be of interest to you if you or someone you know is looking for their first home.It could mean $8,000 in your pocket. Read more

Since your house isn’t your biggest investment and you are using this mentality as a springboard to get out of the endless cycle of dumping your money into the bank’s coffers, there is one big question looming in your mind: “What do you do with this new found money you have saved?” The short answer… invest it. Read more

So if your house isn’t your “biggest investment,” what is a person to? You have to live somewhere. That’s an important question, but there is no easy answer. If the solution had to be narrowed down to one thing it would be “responsible money management.” Read more

When you own an investment property, you can easily claim your property taxes as a business expense. With your personal residence, however, the rules are a bit different. If you itemize your federal deductions you can claim your actual property tax amount. On the other hand, if you use the standard deduction, you can not claim them. Until now. For 2008 and 2009, when claiming the standard deduction on federal income tax returns, the IRS is allowing homeowners to claim up to $500 in property taxes if single and $1000 if married filing jointly. This won’t apply to many homeowners, but if it does, looks like you’ll be saving a bit of extra money this year.

Here is the language taken directly from the IRS’s website:

Your standard deduction is increased by any state and local real estate taxes you paid in 2008, up to $500 ($1,000 if married filing jointly). The taxes must be state or local real estate taxes that would be deductible on Form 1040 (Schedule A) if you were itemizing your deductions. Taxes deductible in arriving at adjusted gross income, such as taxes on business real estate, and taxes on foreign real estate cannot be used to increase your standard deduction.

In the world of real estate you often here people touting that a person’s home is their single biggest investment. If you subscribe to this idea, perhaps it’s time a dose of reality. Read more