RealEstate Real Talk
This page is meant to be your one-stop access to current and cutting edge real estate information.
If you don't see it here, give me a call at 714.392.1200 or email me at kim@kimzander.com
IMPORTANT UPDATE ON 6/17/2010 REGARDING THE STATE FIRST TIME BUYER TAX CREDIT: THE CALIFORNIA FRANCHISED TAX BOARD IS TO ACCEPT ADDITIONAL FIRST-TIME BUYER APPLICATIONS. Some qualifiers are: 1) Must be a single family residence. 2) Must be eligible for the CA property tax homeowner's exemption. 3) Must be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase. FOR MORE DETAILS ON THIS PROGRAM PLEASE VISIT... CA CONTINUES TO ACCEPT TAX CREDIT APPS
WHAT ARE THE HOMES SELLING FOR IN YOUR NEIGHBORHOOD????
NO MORE STATE TAX ON FORGIVEN DEBT
Distressed homeowners no longer have to pay California state income tax on debt forgiven in a short sale, foreclosure, or loan modification. Enacted into law yesterday, Senate Bill 401 generally aligns California's tax treatment of mortgage debt relief income with federal law. For debt forgiven on a loan secured by a "qualified principal residence," borrowers will now be exempt from both federal and state income tax consequences. The existing federal exemption is for indebtedness up to $2 million, whereas the new California exemption is for indebtedness up to $800,000 and forgiven debt up to $500,000.
"Qualified principal residence" indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence. It includes both first and second trust deeds. It also includes a refinance loan to the extent the funds were used to payoff a previous loan that would have qualified.
The tax breaks apply to debts discharged from 2009 through 2012. Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.
Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.
For more information about mortgage forgiveness tax consequences, go to California Franchise Tax Board's Mortgage Forgiveness Debt Relief Extended webpage and the Internal Revenue Service's Mortgage Forgiveness Debt Relief Act and Debt Cancellation webpage. The full text of Senate Bill 401 is available at www.leginfo.ca.gov.
Time is Running Out on the Federal Tax Credits for First-Time and Repeat Buyers. First-time buyers who enter a binding contract by April 30th and close escrow before July 1st, 2010 -and meet the income limits- are eligible for the full $8,000 credit (maximum, or 10% of the sales price, whichever is less) on their federal tax returns. The First-time Home Buyer credit applies to homes purchased for $800,000 or less, and the credit does not require repayment if buyers live in this residence for three or more years! For more details visit Tax Credit Info or call me anytime at 714.392.1200.
How does the new stimulus package effect you????
SEE MORE DETAILS ON THE STIMULUS PACKAGE HERE
Make Work Pay Credit: The bill provides a $500 credit per worker and a $1,000 credit per dual-earner couple.
One-time payments to those who don't work: For seniors, disabled veterans and retired railroad workers.
Break for higher income families: The bill includes a one-year provision to protect middle- and upper-middle-income families from having to pay the Alternative Minimum Tax.
Temporary deduction for car buyers: The bill would let those who buy a car in 2009 deduct the interest and sales tax charged in the purchase.
Temporary credit for home buyers: The bill gives a home buyer credit to $8,000.
New college credit: The bill introduces the American Opportunity Tax Credit, a $2,500 credit for higher education expenses.
Pell Grants: The bill increases the maximum Pell.
Child tax credit: The bill increases eligibility for the child tax credit by lowering the income threshold that must be met to $8,100.
Earned income tax credit: The credit will be temporarily.
Direct lifeline benefits
Health insurance help for the jobless: The bill includes provisions to help eligible jobless workers pay for health insurance under Cobra. Another provides states funding to help pay for expanded Medicaid rolls for workers who've lost their jobs and can't afford health care on their own or can't get Cobra.
Unemployment benefits: The bill provides jobless workers with an additional 20 weeks in unemployment benefits, and 13 weeks on top of that if they live in what's deemed a high unemployment state.
Food stamp payments: The bill includes a provision would increase food stamp payments by 12.
Help for needy families: The bill provides $2.3 billion to states to create a contingency fund through 2010 for the welfare program.
Proposition 193: Grandparent/Grandchild Transfer
Proposition 60: Property Owners At Least 55-Years Old - Within County
Prop. 90 is a constitutional amendment approved by the voters of California in 1988. It is codified in Section 69.5 of the Revenue & Taxation Code, and allows homeowners who are at least 55-years of age to transfer an existing Prop. 13 factored base year value to a replacement residence located in a different county, if certain qualifying conditions are met. Some counties have not adopted local ordinances to implement Prop. 90. Before attempting to transfer your base year value to another county under the provisions of Prop. 90, you should contact the local county Assessor to discuss eligibility.
Can my property taxes be lowered?
Programs that could possibly lower your property taxes
How do I streamline my FHA Mortgage?
What did the house down the street sell for? Enter the address on this site…
Yes! I can represent you at auction sales
What is the value of my property? Contact Kim at kim@kimzander.com and ask for a FREE Market Analysis of your home or property.