Use your tax refund wisely

TopHat John Windle and Rita Lewis of Sunbelt Lending talk about using your tax refund wisely. Lewis is the Windle Group's HomeSweetHome.House preferred lender.

Tips on How the Home Energy Upgrades You Made Last Year Could Make a Big Difference in Your 2015 Tax Return

Tax Day right around the corner, Homeselfe is raising awareness about large tax credits available for those who made energy efficiency upgrades to their homes in the 2015 tax year. Homeselfe wants to ensure American families receive the maximum refund they are eligible for in their tax returns by keeping up-to-speed on the latest federal energy tax credits.

"If you upgraded your home in 2015 by adding insulation, one of the most cost-effective upgrades you can make, you already know you are saving on your utility bills every month plus you may be eligible for a tax credit on that investment," said Ameeta Jain, co-founder and spokesperson of Homeselfe. "Not taking advantage of that is throwing away your hard-earned cash. We want to empower families to receive the maximum refund allowed on their tax returns by providing them insight into the energy credits that are available."

Homeowners should also keep up-to-date on tax credits available for smaller upgrades in their homes, which can be eligible for tax credits up to $500 on their return. These small upgrades include:

• Biomass stoves
• Heating, ventilation and air conditioning
• Advanced main air-circulating fans (tax credit amount of $50)
• Insulation  (10% of the cost, up to $500)
• Roofs (metal and asphalt)
• Water heaters (non-solar earns a tax credit amount of $300)
• Windows, doors and skylights (tax credit amount is 10 percent of the cost excluding labor)

Plan ahead for your tax returns in 2016 by taking a Homeselfe and identifying areas in your home that need improvement and qualify you for tax credits on next year's return. For more information on energy tax credits or how to save on your monthly utility bill, visitwww.homeselfe.com.

To schedule a time for an interview with Co-Founder Ameeta Jain, please contact media@homeselfe.com or 951-719-1040. She will be available to discuss Homeselfe's commitment to improving financial and energy efficiency in households throughout the United States.

What the American Taxpayer Relief Act of 2012 Means to Real Estate in 2013

As we collectively tiptoe backward from the so-called fiscal cliff, those of us in the real estate industry are sifting through the American Taxpayer Relief Act of 2012 to see what it means for our clients.
First and foremost, the act extends the Mortgage Cancellation Relief through Jan. 1, 2014. What this means is that homeowners facing short sales, reduced loan principals, or foreclosures in 2013 can avoid paying taxes on any debt still owed to the bank. Had this provision not passed, the IRS would have taxed the debt as income. The fear that this measure would expire sent homeowners rushing to complete short sales by the end of 2012.
Also high on the priorty list is the deduction for mortgage insurance premiums for filers making below $110,000. Mortgage insurance is insurance that some lenders require home buyers to pay if they put little or no money down. The purpose of this insurance is to insulate the lender against default by the borrower. Mortgage insurance is often called PMI, for private mortgage insurance.
The American Taxpayer Relief Act allows qualified homeowners to write off this insurance premium, in addition to other deductions related to home ownership  such as mortgage interest and property taxes. Some insurance trade groups estimate this provision saves a typical homeowner about $350 in taxes.
Other import provisions of the act include a 15 year straight-line cost recovery for qualified leasehold improvements on commercial properties. is extended through 2013 and made retroactive to cover 2012.
Also homeowners can take a 10 percent tax credit up to $500 for homeowners for energy improvements to existing homes.
If you want to know what this can mean to your taxes, consult your tax professional. If you want to know what this means for your home buying and selling opportunities in 2013, give me a shout!