June 29th, 2009 — Miscellaneous
Stimulus Package: Tax Credit for New Car Buyers
February 19th, 2009 — Miscellaneous, Taxes
The stimulus package that President Obama signed into law on Feb. 17, 2009, includes a $2.3 billion tax break for new car and truck buyers. However, even with the significant savings, auto shoppers are cautioned to continue to do their homework in preparation for financing decisions. Along with looking for different financing options, buyers also need to be very aware of their credit record.
With the new stimulus package, taxpayers will be able to deduct both local and state tax paid on new car purchases up to $49,500. The tax break will be in effect until the end of 2009. The deduction is “above the line,” which means that it reduces the amount of a filer’s taxable income. Taxpayers that are eligible for the break must have an annual income below $125,000 for individuals and below $250,000 for families.
Here are some steps we recommend car buyers follow to take advantage of this opportunity:
- Understand your credit history: with tighter credit, consumers with a strong credit history will still obtain the best rates possible and will have an easier time financing.
-Evaluate your financial situation: how much can you afford? How much can you put down and pay on a monthly basis? Stay within those boundaries.
-Learn the language: being familiar with common terms you’re likely to hear and read in the course of purchasing or financing, will make the process much easier. Terms like APR, down payment, fixed and variable-rate financing are some examples.
-Shop around for financing: compare financing from a variety of sources, including banks, credit unions, financing companies and auto dealers.
Calculate personal tax impact of proposed budget – Sacramento News – Local and Breaking Sacramento News | Sacramento Bee
February 18th, 2009 — Small Business, Taxes
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New Fannie Mae & Freddie Mac Guidelines
February 12th, 2009 — Real Estate
As of February 6, 2009, Fannie Mae and Freddie Mac announced that they will reinstate the guidelines allowing 10 financed properties for real estate investors. Fannie/Freddie used to prohibit backing loans for investors with more than 4 properties. Bare land and commercial property are not included in the properties allowed. This is the time for Real Estate investors. If you are thinking about refinancing or buying real estate investments act quickly before they change the guidelines and while interest rates are still low. One caveat, please remember the lessons from the past. Review all offers to finance in light of your current ability to pay and/or afford the mortgages you are considering. Do not be misled into tricky, “creative” loans that will eventually hurt your financial stability.
Real Estate Expenses Worksheet
February 8th, 2009 — Real Estate, Taxes
Use this worksheet to help organize your real estate rental information for tax preparation and financial statements.
