There are some great tax advantages to owning a home

January 5, 2016 by Michael Eisenberg

There are some great tax advantages to owning a home

One of the many advantages of owning a home is saving money on taxes.

Part of the American Dream is a tax write-off,

The tax law obviously favors homeowners over renters who get no tax breaks. Every few years politicians under the guise of equalizing the tax laws try to take away the tax advantage for home ownership, but they never get anywhere. This might truly get people riled up enough to revolt or throw those trying to take their tax break away out of office.

Every year, homeowners are permitted to deduct the following expenses

Real estate taxes, both state and local taxes can be deducted.
Mortgage interest, the interest you pay on first or second home are fully deductible, well it may not be fully deductibleWhat if your loan is over $1 million or your home equity loan is over $100,000.
If you refinance your home, only the part of the interest the would actually he used for your home or improving your home can be deducted, so if you refinance your home and take out enough money to buy a boat the interest on the amount spent on the boat will not deductible.
Any points or fees you pay to get your loan should be deductible, but these fees are not necessarily deductible in the year to pay, that divided amongst the life of your loan so she paid $3000 in points for a 30 year loan you would only be able to deduct $100 per year, if you pay off the loan early any remaining points are fully deductible that year.
Capital gains with no income tax. If you lived in your home any two of the last five years you can profit up to $250,000 or $500,000 if you’re married and not pay tax on that gain when you sell your primary residence.
Home offices – If you use a portion of your home exclusively for your business you may deduct a portion of the upkeep expenses of your home in proportion to the size of your office

Now I am not a CPA or account and laws change from time to time so check with accountant or CPA to find out what tax advantages to owning a home for you.

What I can help you with is buying or selling a home or investment property. Give me a call if you’d like any information or referrals to someone that can help you with that tax advise.

You Can Change a Zillow Zestimate, Here’s How.

December 28, 2015 by Michael Eisenberg

Have you ever looked at the Zillow Zestimate, for your home and thought, “they are way off?” If you live under a rock the “zestimate” is Zillow’s estimated value for a home. When the zestimate value is an amount considerably lower than what you think it is it can drive you a bit crazy. How frustrating!

It is possible to make changes in that “zestimate”, If you’d like to try, the first thing to do is to analyze the zillow zestimate, and confirm that it is based on accurate information. Are the number of bedrooms, bathrooms, lot size and square footage correct? Has there been any significant remodelling that increased your square footage?

Zillow also uses previous sales price data, some of which may or may not be accurate, as well as local tax records. Zillow than massages all this data to reach an estimated value of your home. If all of Zillow’s data is correct, you won’t be able to change much, but if there are errors you can make corrections. Zillow can change their zestimate based on the new information that you provide. Zillow just made it easy to change your “zestimate.”

To Change Your Zillow Zestimate:

Go to Zillow.com and enter your property’s address.
On the property page, Click Update my Zestimate.
You’ll have to create an account and sign in.
Correct any errors, and your Zestimate should update immediately, you can even add pictures if you like.

2016 May be the perfect time for you to buy a home

December 7, 2015 by Michael Eisenberg

2016 May be the perfect time for you to buy a home

OK so my crystal ball has broken and I just can’t find a good crystal ball repairman (or repairwoman either). But I do think 2016 may be the perfect time to buy a home. Let’s look at a few things.

First...Some of those so called experts (who seem to have working crystal balls) are saying that prices increases will start to slow down next year.

Next.…More homes are expected to come on the market. The price appreciation we have seen over the past few years will have more sellers. More builders will be getting to work so more new homes will be coming on the market as well.

And then…..Record low interest rates could become a thing of the past. We have all heard the rumor of the Fed raising interest rates. Rates are expected to rise slowly, but higher rates translate to higher mortgage payments….The sooner you buy the better your mortgage rate, translating to lower payments or more house for the dollar.

Lastly….. Rents are expected to rise next year which means in many places buying will be cheaper than renting.

If you’re interested in learning more about home ownership and how this may be perfect time to buy a home for you let’s talk.

Give me a call at 360-739-6981