Friday, March 18, 2011

One Month Away - Tax Day

The clocks have been changed to Daylight Saving Time. St. Patrick's Day is over. The First Day of Spring is just around the corner.  But somewhere between 'Spring' and celebrating Easter comes that day of reconciliation that we call (drum roll) Tax Day.


From the Federal Government down through States, Counties and Municipalities, we've been hearing about the need to look at serious budget cuts. As one way to increase revenues, the MID (Homeowners Mortgage Interest Deduction) has been a frequent "visitor" on legislative agendas but to date, nothing has altered your ability to take advantage of this homeowner benefit when filing your 1040


In a recent article published on the National Association of Realtors website, President Ron Phipps, Broker-President of Phipps Realty in Warwick, R.I. says,
"Owning a home offers myriad benefits throughout the year, but some of the financial advantages of home ownership are most apparent at tax time. As many of today's hard-working American families are feeling a financial squeeze, the tax benefits that can come from owning a home can be a welcome relief."
As a long term member of traditional tax deductions, the MID is sometimes the stepping stone for many US taxpayers. Through the use of the MID, they become eligible to realize the benefit of additional deductions as they will now exceed the amount of the standard deduction.  Currently, the IRS allows $5,700 for Single people, $8,400 for head of household and $11,400 for married tax payers. 

According to NAR (National Association of Realtors) 61 percent of the homeowners taking advantage of this deduction earn less than $100,000. And, it is claimed, that homeowners in the US pay 80 to 90% of all federal taxes. Let's hope this deduction remains with us or that percentage could rise.

And by the way, there's one more tax break this year.  Individual filers have until Monday, April 18!


If you're considering a move this year into first time home-ownership, we ask that you also consider using Responsible Referrals to find your agent.  We promise to find one who will skillfully and diligently guide you through the process.  Call us today!


 A Little Housekeeping:
    
     *  There is still time to Play Spent and submit your results on our poll.  It's quite interesting and you'll be glad that you spent a couple of minutes with this unique exercise.

     *  Consider watching the 60 Minutes segment called "Hard Times Generation: Homeless Children".  It's impactful to say the least.

AND....
*     The FREE mp3 download ends today - well it was SUPPOSED to end today.  Since reaction was a little "light", I'm going to pretend that people just haven't had the chance to spread the word and sign up yet. Also, since this post is a little "dry" anyway I think we should extend this FREE MP3 download promotion for another week, say Friday, March 25, 2011 at noon.  (Hey, it's MY blog and I can do what I want to!)
  1. If you haven't already, go to the Responsible Referrals Facebook Page and "Like" us
  2. If you haven't already, see the left side of this blog under the Facebook logo where it says FOLLOW.  Sign up as a follower of the blog. 
  3.  Once you've done both, click CHALLENGE.  An email will be sent to us so that we can reply to you with your download certificate.  We will not add your email address to any list.

Have a GREAT weekend!

MONDAY'S POST:  Harry's Law - Do YOU look?

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