Great Opportunity for Home Buyers...

The Federal Government just approved a First Time Home Buyer Tax Credit. This tax credit is available for homes purchased on or after January 1, 2009 through December 1, 2009. The tax credit is 10% of the home’s purchase price, up to a maximum of $8,000. You must be a first time home buyer, and your income must be below $75,000 for a single taxpayer, up to $150,000 for married couples. If the yearly income is higher, taxpayers still may be eligible for some assistance.

This tax credit does not need to be repaid, (unlike the 2008 tax credit, that needed to be repaid). The $8,000 tax credit is refundable. The homebuyer credit can be claimed even if the taxpayer has little or no federal income tax liability. The tax credit is dollar for dollar reduction in what the taxpayer owes. As an example, if the taxpayer owed $3000 in federal taxes before the tax credit, the taxpayer would get a check back for $5000 from the federal government.

If you are eligible for this tax credit, you do not have to wait until the end of the year to benefit from this program. Prospective home buyers can adjust their withholding up the amount of the credit. Increasing his/her take home pay.


California State Tax Credit for purchase of New Homes. This allows for a state tax credit up to $10,000. This credit applies to new California houses and condos bought as primary residences between March 1, 2009 and March 1, 2010. The credit is based on 5% of the purchase price or $10,000, whichever is lower. The owner must live in the home for a minimum of 2 years. The credit is taken in the year of the purchase, and the two following years (for max credit, it would be $3,333 off buyer’s state taxes each year). The state tax break is limited to $100 million, about $10,000 dwellings.

If you are a first time homebuyer, and purchasing a new home, these 2 credits can be combined for a total credit of $18,000.

With interest rates down around 5%, purchase prices low, and great tax benefits, how can you afford not to make that home purchase?

Why We Celebrate Valentine's Day

It’s that time of year again, when everyone rushes to buy candy, flowers, and expensive jewelry to show their loved ones how loved they are. A Hallmark holiday. At one point in time, when the actual history was remembered, it was not so much what it is today. Why are they called “valentines?” Why do we buy candy, cards, and flowers? Let’s take a look at the reason why we celebrate February 14th.
In 270 AD in Rome, Roman Emperor Claudius II prohibited his soldiers from marrying due to the fact that married men had emotional ties to their families, and therefore would not make suitable soldiers. Noticing the injustice of the Emperor’s decree, Saint Valentine began marrying the forbidden couples in secret. He became known as the “friend of lovers.”
It did not take long for the emperor to discover the actions of the bishop, and Saint Valentine was arrested and thrown into prison. While in prison, the couples that had been married by the bishop visited and brought with them candy, cards, and flowers to show how grateful they were. While in prison, Saint Valentine fell in love with his jailor’s daughter. Emperor Claudius II sentenced Saint Valentine to execution, and the date was set.
On the day of his execution, Saint Valentine requested a paper and pen, and wrote a letter to his love. He signed the love letter “Your Valentine.” Saint Valentine was executed on February 14th in 270 AD. The use of the term “valentine” has carried on, and February 14th is a day to be thankful for the love in our lives. Every year, we honor Saint Valentine and all of his efforts to bring love into the world.
There is a beautiful love story behind the origin of Valentine’s Day, and that part of it should be what is celebrated. So let’s buy our candy, cards, and flowers, and gather with our “valentines” to celebrate another Valentine’s Day!

Homeowner's Tax Review

Did you receive one in the mail? The document states that this is the “2009 Property Tax Reduction Form.” For processing you need to return it by 02/11/09 with $95.00. I just received another one today, “Property Tax Reassessment.” They charge $179.00, and it increases to $209.00 after February 27th, 2009. Unfortunately, the filing period is not open until July 2nd 2009-November 30, 2009. You can file yourself for no charge.

During the filing period, property owners can file assessment appeals. For this, you will need to fill out an “application for changed assessment,” along with supporting information of current market value. I would be happy to supply homeowners with current market value information.

I suggest homeowners wait until May or June to put the application together and submit it themselves to the Sacramento Assessor’s Office. www.sccob.saccounty.net. Check out the links to assessment appeals and decline in market value(prop 8).

I will be blogging about this more when we get closer to the filing period. For now, save your money.