Wednesday, April 28, 2010
Friday, April 23, 2010
As of this week, a previous law is now in effect regarding construction and renovation and lead based paint. Owner/sellers oflder homes, built prior to 1978, must jump through a new hoop if they plan on doing any repairs, renovations, or construction that will affect the paint in their home. We already have a lead based paint disclosure in place for owners of homes of this vintage but here are the new changes:
1) Owners who hire contractors and repair tradespeople must insure that they have been trained and certified by the EPA (Environmental Protection Agency) to prevent household contamination of lead based paint.
2) Contractors must also give owners an EPA lead brochureAdditionally, renovators must deliver EPA's lead renovation pamphlet to an occupant within 60 days before a project begins.
3) Owners must sign off upon reciept of the lead based paint hazard pamphlet.
4) This rule does not apply homeowners doing work on their primary residence but still must disclose any known hazards.
What kind of work requires this extra hurdle?
Any work that disturbs the painted surface (such as sanding, removing hardware, stripping, or light demo) over a 6 square foot area of internal surface or a 20 square foot area of external surface.
Friday, April 16, 2010
Wednesday, April 14, 2010
As the market shows, many homes are being sold as either short sale or foreclosure properties, and as of yesterday California passed a law in which troubled homeowners don’t have to pay California state income taxes on debt that was forgiven in a short sale, foreclosure, or loan modification.
What is it?
The new California exemption is for indebtedness up to $800,000 and forgiven debt up to $500,000.
For debt forgiven on a loan secured by a “qualified principal residence,” (debt in acquiring, constructing, or substantially improving a residence) borrowers will be exempt from both federal and state income tax consequences.
Who does it Cover?
Debt forgiven in a short sale, foreclosure, or loan modification discharged from 2009 to 2012. For those homeowners who already filled their 2009 taxes, there is a exemption Form 540X amendment that can still be mailed in.
It includes first and second trusts deeds.
The Fine Print:
There are many exemptions under which homeowners cannot qualify for these tax breaks, including:
- Second homeowners or rental property investors
- Bankrupt homeowners
- Insolvent taxpayers (but may still be exempt under other provisions)
For more information regarding the above information and addition exemptions, visit http://www.ftb.ca.gov/aboutFTB/newsroom/Mortgage_Debt_Relief_Law.shtml or http://www.irs.gov/individuals/article/0,,id=179414,00.html.
*This is our paraphrasing of a recent email from our California Association of Realtors.
Wednesday, April 7, 2010
Main house 2 bed w/ yard - will rent for $1600 /mo 2nd house 1 bed w/ yard - will rent for $1250/mo
Mortage payment with 20% down is $1900 + tax & inusrance (approx $500/mo) = $2400
Live in back unit and it leaves you very little mortgage payment after tax savings. Live in front unit and mortgage payment still drastically reduced to only $1150!
Awesome neighborhood on Woods in Historic Downtown Fullerton Area
Monday, April 5, 2010
Assembly Bill 183, the Homebuyer Tax Credit legislation has officially been signed into law! AB 183 provides $200 million in tax credits, half of which is allocated toward first time buyers purchasing existing homes and the other half for first time buyers purchasing new or never occupied homes.
Here's the important dates:
One must purchases a home on and after May 1, 2010, and on or before Dec. 31, 2010
One must purchase a home on and after Dec. 31, 2010, and before Aug. 1, 2011, if under contract before Dec. 31, 2010.
How much is the credit?
The credit is the lesser of 5 percent of the purchase price or $10,000, in equal installments over three consecutive years.
Purchasers must live in the home for at least two years or pay back the credit!
There's never been more incentive than now as it is currently possible for buyers to get a total of $18,000 in tax credits if they get into escrow by the end of the month! We'd love to help you make this happen.