Creating a household budget is hardly a fun exercise, but it is a necessity, especially in these tough economic times. Determining where monthly paychecks go can help rein in bad spending habits and create new, fiscally friendly ones.
To start, financial planners suggest you gather a year's worth of bills and loan payments to create a complete picture of your expenses. Make a list and assign each to a category, such as groceries, utilities, mortgage, auto and entertainment. Be sure to note when your spending increases throughout the year, such as around holidays or annual vacations.
Next, determine fixed and variable expenses. Fixed expenses have little to no change each month, such as mortgage, car payments or cable bills. Variable expenses change monthly-groceries, gas or personal expenses such as morning coffee runs.
Once you've sorted your expenses and calculated a monthly average, figure out your monthly income by checking your pay stubs and other sources of revenue. Ideally, your expenses should not be greater than your income. Your ultimate goal is to create a "zero-dollar budget" to see exactly where each dollar of your income goes. The money left over should be put into a savings account or used to pay down credit card debts.
When you're through with this exercise, look for ways to build an emergency fund. Consider putting aside enough for three to six months' living expenses. If this number is too daunting, set a goal for smaller amounts, like $1,000 to $3,000.
To learn more about the benefits of household saving Call Us today at 954-438-0345!
Check out this month's latest news. Click on the link below and see our February Market Conditions Report:
The Moscoso Group February Update
If you need more information on any of these topics, give us a call at 954-438-0345 or send us an e-mail to pilar@moscosogroup.com.
Great news for homebuyers! The Homebuyers Tax Credit has been extended into the first half of 2010...and it has been expanded to include benefits for current homeowners!
Who Qualifies? First-time homebuyers may be eligible for the tax credit worth 10% of the purchase price of the home, with a maximum available credit of $8,000.
In addition, the program now gives current homeowners an additional reason to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Eligible Incomes: Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more can receive a partial credit; however, single filers who earn $145,000 and above are ineligible.
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more can receive a partial credit; however, joint filers who earn $245,000 and above are ineligible.
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
For more information, call us today at 954-438-0345. Let us know if we can help you or anyone you know with any real estate needs…now or in the future…here in South Florida! We can help whether buying, selling, building, or renting!
Check out this month's latest news. Click on the link below and see our December Market Conditions Report:
The Moscoso Group January Update
If you need more information on any of these topics, give us a call at 954-438-0345 or send us an e-mail to pilar@moscosogroup.com.
The Moscoso Group’s Top 10 Reasons to List Your Home Before the End of the Year!
#1– Buyers who look at property during the holidays are serious and are more ready to make a decision!
#2– Serious buyers have fewer houses to choose from during the holidays, so property has less competition...even in this market!
#3– Houses “show better” when decorated for the holidays with the wonderful lights and festive colors associated with the season...neighborhoods show better, too!
#4– Buyers are more emotional during the holidays and often base their decisions on the warmth and good feeling they receive when viewing your house.
#5– Buyers have more time to look for a house during the holidays because they have taken time off from work to purchase a home.
#6– Many people want to buy before the end of the year for financial and tax reasons.
#7– January is traditionally the month for company transfers. Transferees can’t wait until the Spring to buy. Your house must be on the market to capture these buyers NOW.
#8– You may restrict showings during your own personal family events and still take advantage of your spruced up and decorated “show ready” property.
#9– You can sell now, but specify a delayed closing or extended occupancy—after the new year.
#10-When you sell now you have an opportunity to buy during the spring, when more properties are on the market...and home prices have gone down even more!
Call Pilar and The Moscoso Group day or night!
Dial 954-438-0345.
Pilar and The Moscoso Group look forward to serving you this holiday season.
Check out this month's latest news. Click on the link below and see our December Market Conditions Report:
The Moscoso Group December Update
If you need more information on any of these topics, give us a call at 954-438-0345 or send us an e-mail to pilar@moscosogroup.com.
Check out this month's latest news. Click on the link below and see our November's Market Conditions Report:
The Moscoso Group November Update
If you need more information on any of these topics, give us a call at 954-438-0345 or send us an e-mail to pilar@moscosogroup.com.
First Time Homebuyer Tax Credit Extended Into 2010!
Plus...A New Tax Credit for Certain Existing Home Owners!
It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009. In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.
So Who Gets What?
The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn. Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Deadlines
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.
First-Time Homebuyer Tax Credit – Frequently Asked Questions
Here are answers to some commonly asked questions about the tax credit.
What is a tax credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.
What is the tax credit for first-time homebuyers (FTHBs)?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.
Who is eligible for the FTHB tax credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible. As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.
How do I claim the credit?
For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).
Can you claim the tax credit in advance of purchasing a property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.
Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.
Are there other restrictions to taking the credit?
Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.
- You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
- You do not use the home as your principal residence.
- You sell your home before the end of the year.
- You are a nonresident alien.
- You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
- Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
- You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.
Can you buy a home from a step-relative and be eligible for the credit?
Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.
Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?
Yes.
Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?
No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.
If you have any questions that fall outside the situations here, give me a call at 954-438-0345!
For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they've already filed their tax return. Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before Dec. 1 receive up to $8,000, or $4,000 for married individuals filing separately. People can claim the credit either on their 2008 tax returns due April 15th or on their 2009 tax returns next year.
The filing options to consider are:
* File an extension. Taxpayers who haven't yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15th.
* File now, amend later. Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later.
* Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return.
* Claim the credit in 2009 rather than 2008.
The amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers.
To learn more about the overall implementation of the Recovery Act, visit www.Recovery.gov or call us today at 954-438-0345!
Thinking about selling your home but are concerned about your "Short Pay-Off"? Wondering what complications, if any, could come about as a result of a Short Sale? What is a Short Sale, anyway?!? What does that mean?!? How does it work?!?
Here at The Moscoso Group, we have received many calls from homeowners who can no longer afford their mortgage payments. When they take steps toward selling their property, these homeowners find that the amount of money they owe is greater than the current fair market value.
Are you in this situation? We may be able to help by negotiating a short sale with your lender.
SHORT SALES ARE A GREAT WAY TO GET YOUR HOME SOLD IN TODAY'S MARKET. EDUCATE YOURSELF ON THE RIGHT WAY TO HANDLE YOUR SALE.
There is a way to get out from under the burden of a large mortgage payment! YOU CAN SELL TODAY! Get the facts about short sales and pre-foreclosures in today's market!
As part of our excellent customer service at The Moscoso Group and our commitment to consumer education, we are here to help you answer your questions!
For a seller, a short sale will be much less damaging to his or her credit (a potential 50 point drop versus 200-plus drop in foreclosure!).
Short sales are a long and complicated process, and should only be handled by real estate professionals who understand the process and can cut through the red tape, Pilar Moscoso and The Moscoso Real Estate Group!
If you have any questions, call us today!
Check out this month's latest news. Click on the link below and see our October's Market Conditions Report:
The Moscoso Group October Newsletter
If you need more information on any of these topics, give us a call at 954-438-0345 or send us an e-mail to pilar@moscosogroup.com.
Check out this month's latest news. Click on the link below and see our August's Market Conditions Report:
The Moscoso Group August Newsletter
If you need more information on any of these topics, give us a call at 954-438-0345 or send us an e-mail to pilar@moscosogroup.com.
First-Time Homebuyers Have Several Options to Maximize New Tax Credit
For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they’ve already filed their tax return. The expansion in the first-time homebuyer credit will make it easier for first-time homebuyers to enter the housing market this year. Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before Dec. 1 receive up to $8,000, or $4,000 for married individuals filing separately. People can claim the credit either on their 2008 tax returns due April 15th or on their 2009 tax returns next year. The filing options to consider are:
þ File an extension. Taxpayers who haven’t yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15th. This step would be faster than waiting until next year to claim it on the 2009 tax return. Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.
þ File now, amend later. Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later. Taxpayers would file their 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit.
þ Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on the 2009 return.
þ Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.
The IRS reminds taxpayers the amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers. Taxpayers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately. IRS.gov provides more information, including guidance for people who bought their first homes in 2008. To learn more about the overall implementation of the Recovery Act, visit www.Recovery.gov or call us today at 954-438-0345!
Florida voters overwhelmingly approved Amendment 1 in January 2008, which doubles the homestead exemption to $50,000, affords homesteaded owners the "portability" right to move Save Our Homes benefits to a new homesteaded property, grants businesses and mobile home residents a $25,000 break on tangible personal property taxes, and caps annual increases for non-homesteaded properties to no more than 10%.
Most importantly, the proposal fully preserved our existing 3% Save Our Homes cap. Also, Homesteaded owners do NOT need to apply for the additional savings, as the $50,000 homestead exemption amount will be automatically applied starting this year. The Florida Department of Revenue (DOR) has drafted the initial forms, guidelines and administrative rules to implement the rest of these new benefits. Click here to visit the DOR website tracking these developments. You can also read the enabling legislation for the amendment by clicking here if you'd like to learn more.
If you had homestead on one Florida property in 2007 and are now seeking to move your homestead to a new location in 2008: Click here to download the new portability application
If you are a Broward business owner, filing your 2008 tangible personal property tax return with our office will also serve as your application for the new $25,000 exemption on tangible personal property.
For more information call us today at 954-438-0345!
Check out this month's latest news. Click on the link below and see our July's Market Conditions Report:
The Moscoso Group July Newsletter
If you need more information on any of these topics, give us a call at 954-438-0345 or send us an e-mail to pilar@moscosogroup.com.