Home Ownership and Taxes

[Jonathan]

Hello Spaf,

I would agree but with one qualifier – Standard Deduction can be hard to beat.

Heh -- not in the DC area

We just bought a house in MD. We won't see "standard deduction" territory for many years -- unless the law changes.

As I was typing this and re-reading what I was typing, I came to the realization that.... Yes - maintaining a home mortgage does have the tax advantages.

It does. However, those tax advantages are merely a partial reimbursement for what you spend on your home, etc., and the fact that they're available to you depends upon the fact that the market for home prices has grown up around those deductions being available. In other words, you're getting the tax deductions because houses are more expensive due in part to the fact that you can get those tax breaks.

Frankly, I'd rather spend less money on a mortgage in the first place. But you work with what you're dealt.

If you don't have enough in deductions to beat the standard (minimum) deduction, then the standard deduction is actually a very good deal.

A better tax option, IMHO, is to reduce your adjusted gross income in the first place through business expenses, etc.--assuming you can do so.

 

[Jonathan]

This is where a LOT of people are being taken to the cleaners. Many insurance companies bank on the fact that people will sign up for a low rate, and then stick with the company over the years, and pay whatever the insurance company demands each year as they increase the premiums.

That's good advice. I'm a new homeowner, and right now, our rates are very low (thanks to being with the company a long time, and the fact that we get our auto insurance through them, too).

 

[tspforretirement]

No, just a BnW TV Western Show enthusiast.

View attachment 2257

Paladin,

I got it! Thanks for the reference.


Hooah!

 

[tspforretirement]

This is where a LOT of people are being taken to the cleaners. Many insurance companies bank on the fact that people will sign up for a low rate, and then stick with the company over the years, and pay whatever the insurance company demands each year as they increase the premiums.

Here is some good advice- don't take your insured value, or the insurance premiums- for granted.

Every year, I check home prices around me, and I also call at least two or three other insurance companies, and tell them I am considering switching homeowner's insurance, and would they please give me some quotes. You would be surpirsed how much the cost of a nearly identical policy is between companies.

two years ago, my USAA jacked up the premiums a bit, after the hurricane seasons (I'm in Michigan- go figure), and the price seemed pretty high. I talked to other companies, and then called USAA back, and asked them about coverage and prices. I got them to knock a little off the premium hike, and then last year they dropped the premium back down a little more, so that now it is comparable with what it was three years ago. Not less, but not that much more.

It pays to know what it will cost to replicate your house, what your home contents are actually worth (walk around and videotape everything, then put the videotape in an offsite location, in case you have a fire and loose everything). The more data you have about what you had in the house, the better off you will be in the event you ever have a claim.

I'm lucky that I've never had to make a claim, but still, it pays to properly prepare just in case. And it pays to talk to both your present agency, and others, when it comes time to renew homeowner's policies.

Hi James 48843 and wv-girl,

I personally have not had a "completely" negative experience with my homeowners insurance company (USAA), but I have had lengthy discussions. Even had to have it "elevated." This occurred because we "upgraded" our living residence.

What I'm willing to say is that I know have an annual insurance premium that is less than $100.00 more than what I had on my previous house.

The value difference from the first home to the second is about 250%

The next question would be, "What is my annual insurance payment?"

I am willing to say it is between $50.00-$60.00 per month.

Lastly, many do not realize this but insurance companies take into value what it will cost to replace your current home (not the current value). It may have cost $100,000 to build it, but in a year, two, ten, how much will equipment, supplies and labor go up. I think this is one of the biggest over-riding factors for insurance companies to give the "initial" inflated premiums.

If you don't protest, then my insurance premiums will stay low. :blink:




HOOAH!

 

[tspforretirement]

Heh -- not in the DC area

We just bought a house in MD. We won't see "standard deduction" territory for many years -- unless the law changes.
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It does. However, those tax advantages are merely a partial reimbursement for what you spend on your home, etc., and the fact that they're available to you depends upon the fact that the market for home prices has grown up around those deductions being available. In other words, you're getting the tax deductions because houses are more expensive due in part to the fact that you can get those tax breaks.

Frankly, I'd rather spend less money on a mortgage in the first place. But you work with what you're dealt.

If you don't have enough in deductions to beat the standard (minimum) deduction, then the standard deduction is actually a very good deal.

A better tax option, IMHO, is to reduce your adjusted gross income in the first place through business expenses, etc.--assuming you can do so.

Jonathan,

I agree! I would like not to have to pay a mortgage. Just think what we could do with that mortgage money!!

But if you don't pay into a mortgage, then you pay rent, and as far as I know this is not an allowable IRS deduction and alot of places consider living in the public park illegal.

Now if one was a business owner of a rental property, now, that has some great deductions. Of course we'll always have "free-loaders" and adult off-springs come to mind. Whew!



HOOAH!

 

[tspforretirement]

Homeownership information (taxes, etc.) for Hernando, Florida.

There is a more direct access link, but the link I list below is a few steps back to explain the issues of connectivity (maximum number total accesses is 10):

This is their "public" access web link:

http://www.co.hernando.fl.us/tc/propertysearch.htm

 

[Wrngway]

No, just a BnW TV Western Show enthusiast.

A knight without armor in a savage land.

 

[tspforretirement]

A knight without armor in a savage land.

Hi Wrngway,

Paladin maybe without the armor, but I'm pretty sure he's got his +5 Avenger.


(NOTE: +5 Avenger is a reference to DnD and not the gun-powder based projectile weapons, then again, maybe there is one).


HOOAH!

 

[tspforretirement]

Hello All,

Sorry if this is off-track, but it seems the thread is going that way, but I've found some good information for those who wondering about the monies those Alaskan residents receive.

Many do not realize that individuals who claim Alaska as their State of residence DO get a check from the State of Alaska. It is the Alaska Permanent Fund Dividend. This year it pays: $1654.00 per person (includes children). That is if you are a family of four then multiply by four. No examples this time.

There are many qualifications to receive this, and of course, one of them is to establish actual residency. The following is the link for more information: https://www.pfd.state.ak.us/


NOTE: My driver license is still AK.


HOOAH!

 

[tspforretirement]

Propety Tax Information for North Carolina.

They do not have an accessible website that provides "up-to-date" information, but their website show previous taxations (in whole generalities) and many POCs.

http://www.dor.state.nc.us/taxes/property/index.html

A good note is that they show on the main page what/how to get exemptions.


HOOAH!

 

[tspforretirement]

Property tax information for Anchorage, Alaska.

http://www.muni.org/treasury/Content/treasury/prop_general.cfm


Hooah!

 

[tspforretirement]

Property Tax information for Shelby, Tennessee.

http://www.assessor.shelby.tn.us/content.aspx