Tax Benefits of Owning A Home

I found this article interesting and strongly suggest that you speak with your CPA about your particular situation. 

The tax benefits of buying a home include:

Home mortgage interest deduction: The interest paid on a mortgage or mortgages of up to $1 million for a principal residence and/or second home is deductible as an itemized deduction. In the early years of a home loan most of the payments consist of interest, so this deduction is particularly substantial during the first years of homeownership.
Depending on the state a buyer lives in and his or her tax bracket, this deduction can reduce the cost of borrowing by one-third or more.
Home equity loan deduction: Homeowners can borrow up to $100,000 against the equity in their home and deduct the interest as an itemized deduction. The money can be used for any purpose, such as paying off high-interest credit card debt. In contract, the interest on credit card debt is not deductible.
Property tax deduction: Homeowners also get to deduct from their federal income taxes the state and local property taxes they pay on their home. This is another itemized deduction that renters don't get.
Deductible homebuying expenses: Various closing costs ordinarily involved in a home purchase are also deductible as itemized deductions, including loan origination fees (points), prorated interest on a new loan, and prorated property taxes paid at settlement.
$250,000/$500,000 home-sale exclusion: Perhaps the greatest tax benefit of owning a home comes when a person sells it at a profit. Homeowners who lived in their home for two of the prior five years prior to its sale need pay no income tax on a substantial amount of their profit -- $250,000 for single homeowners and $500,000 for married homeowners who file jointly. This exclusion can be used once every 24 months.
14 days of free rental income: Another little known tax benefit of owning a home is that the owner can rent it out for up to 14 days during the year and pay no tax at all on the rental income. In contrast, a renter who sublets his or her rental must pay income tax on all the rental income he or she earns.

Real Estate Tax Talk
By Stephen Fishman, Friday, February 4, 2011.

Inman News™

Electirc Vehicle Workshop: Commnity Environmental Council

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Saturday, Feb 12

Electric Vehicle Workshop Saturday, February 12 at 1pm - 3pm Santa Barbara MTD, 550 Olive St. SB, CA Free to the public - RSVP requested Are you thinking about purchasing or leasing an electric vehicle this year? We'll help you lay out all your options in this workshop. Learn how you can get a $5,000 rebate for purchasing an electric vehicle, how to get a charging station permitted in your home, and the best time of day to charge. Join CCSE, the Community Environmental Council, Santa Barbara County Air Pollution Control District (APCD) and the Central Coast Clean Cities Coalition for this workshop where you'll learn about: The Clean Vehicle Rebate Project (CVRP) funding process, including important deadlines and frequently asked questions "Time-use" electricity rates from Southern California Edison The rapid build-out of California’s new electric vehicle charging infrastructure Register today at: www.energycenter.org/cvrp-events Let us know you're coming to the event on Facebook. While you're there, join our Plug In Santa Barbara Page for updates on the newest technology and our three upcoming Green Car Shows.

Weekly Real Estate Snapshot 2/28 - 3/6

New Listings: 68

Price Improvements: 46

Pending:  34 breaks down to:
     under $1 million: 19
     $1-2 million: 10
     $2-4 million: 2
     $4-8 million: 2
     $8 million+: 0

Closed: 25 breaks down to:
     under $1 million: 18
     $1-2 million: 2
     $2-4 million: 3
     $4-8 million: 2
     $8 million+:  0

Off Market (expired, canceled, withdrawn): 27

Back On Market: 8

Weekly Real Estate Snapshot 1/31 - 2/6

New Listings: 30

Price Improvements: 26

Pending: 23 breaks down to:
     under $1 million: 16
     $1-2 million: 2
     $2-4 million: 5
     $4-8 million: 0
     $8 million+: 0

Closed:  13 breaks down to:
     under $1 million: 9
     $1-2 million: 2
     $2-4 million: 1
     $4-8 million: 1
     $8 million+: 0

Off Market (expired, canceled, withdrawn): 23

Back On Market: 5

Unsubscribe from The Yellow Pages! Best idea ever!!! Too good not to share!

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Dear Yellowpages Wednesday, February 2, 2011 Feature by: Ben Burleson Dear Yellowpages, When we were young, we looked to you for all the answers. You faithfully stood by in the kitchen drawer, eager to share your wisdom. Back when a phone was just a phone, you were there to connect the world. We’ve all grown now, “moved on” as it goes. Well, except you. You’re still there, like a lost puppy on our doorstep, waiting for a master to play. But not so cute. In fact, we’ve gotten a little tired of cleaning up after you. Three times a year, every year, until today. It turns out you’ve grown up too! You’ve recognized we can get along without you, and for that, we salute you. With the release of your new Opt-out website, you’ve carved a notch of respect in our book. We can’t say we’ll miss those surprises on our doorstep, but really, truly, we wish you the best. Love, Mikana Lovemikana? Tell a friend.

LOVEmikana is strictly editorial. Our love is always free! ©2010 LOVEmikana Inc, All Rights Reserved. PO Box 90728 | Santa Barbara, CA 93190 www.lovemikana.com  |  contact us  |  privacy policy  |  terms & conditions "You are receiving this daily newsletter because you subscribed at www.lovemikana.com." change subscription preferences  | forward to a friend

Santa Barbara Council Hands Off Drafting of Bag Tax to Ordinance Committee

The council votes unanimously to support a citywide tax in an effort to reduce the use of single-use plastic bags

The days of widespread use of plastic bags in Santa Barbara stores could be numbered, if Tuesday’s unanimous vote by the City Council is any indication.
The council agreed to have the Ordinance Committee hammer out the details of a citywide bag tax and come back with a workable solution. Ultimately though, voters would have to approve the tax with a two-thirds vote. The ordinance also would need to undergo an environmental impact report to avoid potential lawsuits, and the cost of that document — unknown at this point — could be a tough sell to some members of the council.

Santa Barbara wouldn’t be alone in that effort, however. Other cities have had to do their own environmental impact reports, and Santa Monica and San Jose are among a handful of cities that have adopted bans. Currently, Santa Barbara residents can recycle plastic bags with grocery store programs, but there is no curbside recycling available for the bags.
Local attention to the issue comes in the wake of a failed attempt to ban plastic bags statewide. The California State Senate decided last fall not to enact a statewide ban on plastic grocery bags.
The Assembly bill, formally known as Assembly Bill 1998, would have prohibited supermarkets from providing single-use plastic bags to customers, though paper bags would have been available for no less than 5 cents each. Even the paper bags provided would have had a minimum of 40 percent post-consumer recycled content. The bill would have gone into effect for supermarkets on Jan. 1, 2012, and in 2013 for convenience stores. Customers could have avoided the tax by bringing in reusable grocery bags.
At the local level, the Santa Barbara City Council supported AB 1998, and it even advocated that the bill be made stronger, with higher fees for the bags to reduce use.
The idea of cutting down on single-use bags has received support from several organizations, including Santa Barbara Channelkeeper and the California Grocers Association, which partnered with the city during the “Where’s Your Bag?” campaign that kicked off in August 2009.
San Francisco, Oakland, Los Angeles and Malibu have adopted ordinances prohibiting the distribution of plastic bags, but a number have been sued by plastic-bag manufacturers on the basis that prohibitions were “projects” subject to the California Environmental Quality Act.
Of the nine public speakers during Tuesday’s council meeting, all were behind the idea of reducing the use of plastic bags.
Tri-County Produce owner John Dixon said his customers get a ticket for each reusable bag they bring, worth 5 cents that then can be donated toward six charities. He said the program has earned $3,500 for local charities and has increased the number of people using reusable bags in the store. He said he hopes that if the issue can’t be taken up statewide, that it will be examined at a county level.
“Everyone can solve this problem by bringing a bag,” Dixon said.
Councilman Grant House said that people entering his sewing machine stores have responded to the “Where’s Your Bag?” stickers placed by the cash register. And Councilman Bendy White said he’s disappointed that the Santa Barbara community has to be “dragged” into the effort.
“We’re not moving fast enough,” he said.
Mayor Helene Schneider read a statement that Assemblywoman Julia Brownley sent to the city, in which Brownley encouraged local governments to move forward on the bans so that momentum can gather and eventually change state policy.
“A statewide ban is the way to go,” Schneider said. “If the way to get there is with a city by city basis, we should be a part of that.”

— Noozhawk staff writer Lara Cooper can be reached at lcooper@noozhawk.com. Follow Noozhawk on Twitter: @noozhawk or @NoozhawkNews.

Weekly Real Estate Snapshot 1/24 - 1/30

New Listings:45

Price Improvements: 43

Pending: 19 breaks down to:
     under $1 million: 15
     $1-2 million: 3
     $2-4 million: 0
     $4-8 million: 1
     $8 million+: 0

Closed: 10 breaks down to:
     under $1 million:6
     $1-2 million: 3
     $2-4 million: 1
     $4-8 million:0
     $8 million+: 0

Off Market (expired, canceled, withdrawn): 33

Back On Market: 10

Weekly Real Estate Snapshot 1/17 - 1/23

New Listings: 52

Price Improvements: 30

Pending: 29 breaks down to:
     under $1 million: 16
     $1-2 million: 6
     $2-4 million: 6
     $4-8 million: 1
     $8 million+: 0

Closed: 16 breaks down to:
     under $1 million: 12
     $1-2 million: 2
     $2-4 million: 1
     $4-8 million: 0
     $8 million+: 1 *2549 Sycamore Canyon Road for $15,310,000

Off Market (expired, canceled, withdrawn): 23

Back On Market:  8

Community Environmental Council Breakfast Invitation

Weekly Real Estate Snapshot 1/10 - 1/16

New Listings: 55

Price Improvements: 23

Pending: 12 breaks down to:
     under $1 million: 9
     $1-2 million: 2
     $2-4 million: 1
     $4-8 million: 0
     $8 million+: 0

Closed:  12 breaks down to:
     under $1 million: 7
     $1-2 million: 4
     $2-4 million: 0
     $4-8 million: 0
     $8 million+: 0

Off Market (expired, canceled, withdrawn): 28

Back On Market: 6