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Casual Articles - Why Uncle Sam Wants You - To Purchase A Home!
The mortgage term life insurance pays the beneficiary with amount covered in case the borrower suffers from critical illness, incapacitating accident, or depressing death. The borrower brings home the income to repay the mortgage. With loss of income from critical illness, incapacitating accident, or depressing death of the borrower, the family needs to fend off to repay the mortgage themselves. The borrower can choose the amount of coverage on the insurance policy. Unlike the mortgage life insurance, the mortgage term life ins
Obviously, while both of these examples are over-simplified, as most people's individual tax circumstances can vary
As Carl Rogers said, "The major barrier to mutual interpersonal communication is our very natural tendency to judge, to evaluate, to approve or to disapprove." Approval usually comes when my perceptions of your behavior match my assumptions of how I think you should behave. It's time to stop shoulding on each other and begin to ACCEPT each other with our differences. This doesn't mean we always have to agree with each other; just accept. People perceive things differently due to differences in cultural/ethnic background, person
For example, the Median Household Income for Diamond Bar and Walnut, California a neighboring community) residents’ is slightly over $100,000.00 per year. Assume that a homebuyer purchases a typical home in the area with a purchase price of $600,000, and finances the purchase with an 80% conventional 30 year fixed rate loan with a rate of 6.25%. Also assume that the new homeowner falls into the 25% tax bracket. The new homeowner will have an annual tax deduction of mortgage interest of approximately $30,000 per year, and a property tax deduction of $7,500 per year! The new homeowner would have an approximate tax savings of $9,375 for the year. This factor alone makes owning your own home extremely desirable.
In addition to the above mentioned annual tax break, there is also a little known tax break available to the homeowner when you decide to sell your home. Depending on your circumstances, you'll be able to avoid some taxes on the profit you make. Years ago, to avoid paying tax on the sale of a residence a homeowner had to use the sale proceeds to buy another house. In 1997, the law was changed so that up to $250,000 in sales gain or profit ($500,000 for married joint filers) is tax free as long as the homeowner owned the property for two years and lived in it for two of the five years before the sale. Please note this important stipulation, it is worth repeating, you can not qualify for the $250,000 tax free gain ($500,000 for married joint filers) unless you have lived in the property for two of the five years that you have owned the home. If you sell before meeting the ownership and residency requirements, you will owe tax on any profit you make.
The IRS provides some tax relief if the sale is because of a change in the owner's health, employment or unforeseen circumstances. In these cases, the tax-free gain amount is prorated. And a ruling by the IRS in late 2002 could put more dollars in homeowners' pockets when they must sell before they qualify for the full tax break. The Treasury has defined the unforeseen circumstances that often force homeowners to sell and under which they now can get some tax relief. They include: Death,Divorce or legal separation,Job loss that qualifies for unemployment compensation, employment changes that make it difficult for the homeowner to meet mortgage and basic living expenses, and multiple births from the same pregnancy.
Obviously, while both of these examples are over-simplified, as most people's individual tax circumstances can vary s
When a borrower falls behind on loan payments it can mean big trouble. If the loan was secured with collateral then the borrower has more to worry about then just credit problems.Adverse loans will not go away and they often become a large problem. A loan is considered to be an adverse loan at the first missed payment, so letting it go is not an option. The minute the borrower realizes they will miss a payment they need to take action.The very first thing to do when a loan payment is not going to be paid on time is contact
In addition to the above mentioned annual tax break, there is also a little known tax break available to the homeowner when you decide to sell your home. Depending on your circumstances, you'll be able to avoid some taxes on the profit you make. Years ago, to avoid paying tax on the sale of a residence a homeowner had to use the sale proceeds to buy another house. In 1997, the law was changed so that up to $250,000 in sales gain or profit ($500,000 for married joint filers) is tax free as long as the homeowner owned the property for two years and lived in it for two of the five years before the sale. Please note this important stipulation, it is worth repeating, you can not qualify for the $250,000 tax free gain ($500,000 for married joint filers) unless you have lived in the property for two of the five years that you have owned the home. If you sell before meeting the ownership and residency requirements, you will owe tax on any profit you make.
The IRS provides some tax relief if the sale is because of a change in the owner's health, employment or unforeseen circumstances. In these cases, the tax-free gain amount is prorated. And a ruling by the IRS in late 2002 could put more dollars in homeowners' pockets when they must sell before they qualify for the full tax break. The Treasury has defined the unforeseen circumstances that often force homeowners to sell and under which they now can get some tax relief. They include: Death,Divorce or legal separation,Job loss that qualifies for unemployment compensation, employment changes that make it difficult for the homeowner to meet mortgage and basic living expenses, and multiple births from the same pregnancy.
Obviously, while both of these examples are over-simplified, as most people's individual tax circumstances can vary
Sacred cows take a long time to die. We get comfortable in the way we do things and lose sight of how they could be improved. Here's an interesting story.A woman was in the process of fixing her special holiday ham. She cleaned it and then took a huge knife, lopped off both ends of the ham and placed it in a pan. Her daughter, who was learning how to cook asked, "Now Mom, why did you do that?""Because that's how your grandmother taught me," was her answer. "Let's ask her." So they did. Her answer was the same. Her mother t
The IRS provides some tax relief if the sale is because of a change in the owner's health, employment or unforeseen circumstances. In these cases, the tax-free gain amount is prorated. And a ruling by the IRS in late 2002 could put more dollars in homeowners' pockets when they must sell before they qualify for the full tax break. The Treasury has defined the unforeseen circumstances that often force homeowners to sell and under which they now can get some tax relief. They include: Death,Divorce or legal separation,Job loss that qualifies for unemployment compensation, employment changes that make it difficult for the homeowner to meet mortgage and basic living expenses, and multiple births from the same pregnancy.
Obviously, while both of these examples are over-simplified, as most people's individual tax circumstances can vary
Most Americans have too much credit card debt. Duh, we've all heard that before, right? Only now its gotten a bit personal... right again? You personally have too much credit card debt and its about to drive you crazy.Well there IS hope so don't file those bankruptcy papers just yet. One major thing you have to keep in mind is your creditor is probably very willing to work with you. Its in their best interest to have you making some payment versus no payment. So here are a couple points to help you deal with you
The IRS provides some tax relief if the sale is because of a change in the owner's health, employment or unforeseen circumstances. In these cases, the tax-free gain amount is prorated. And a ruling by the IRS in late 2002 could put more dollars in homeowners' pockets when they must sell before they qualify for the full tax break. The Treasury has defined the unforeseen circumstances that often force homeowners to sell and under which they now can get some tax relief. They include: Death,Divorce or legal separation,Job loss that qualifies for unemployment compensation, employment changes that make it difficult for the homeowner to meet mortgage and basic living expenses, and multiple births from the same pregnancy.
Obviously, while both of these examples are over-simplified, as most people's individual tax circumstances can vary
An incentive is a way to pay back the effort to meet the goals you set. It is a promise in the form of gift, given to motivate people to sell, or to encourage people to buy your products or services. In the business sector, both an employee and customer can receive incentives, which may come in the form of money or free goods.Rewards for employees can be given if they sell certain hard-to-sell or expensive products, or if they meet certain sales quotas. Those for clients, on the other hand, can be given if clients buy certain pro
Obviously, while both of these examples are over-simplified, as most people's individual tax circumstances can vary substantially, they are solely used to illustrate how homeownership can be a great tax savings tool during the time period that you own your home and when you sell. The best person to advise you on tax matters is a licensed certified public accountant. I recommend that you contact your tax professional for tax advice before you buy, it might make all the difference in determining which house you make an offer on!
Furthermore, although not tax related, owning your own home especially in the last few year's appreciating real estate market, has contributed to many homeowners finding that the value of their home equity has doubled or tripled during this time period. The 2000 U. S. Census Report on Net Worth and Asset Ownership of Households has determined that approximately 70% of the average American's net worth at retirement age is comprised of the value of their home equity. While this rate of appreciation has definitely cooled down in many real estate markets in recent months, in others it still has shown a healthy appreciation rate. Your best way of finding this information is by speaking to a professional realtor who can advise you on your local real estate market.
Considering all the above factors, it's no wonder that the U.S. Government wants you to own your own home.
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