Kerry Veach

If you own Destin, FL real estate, then you’ve probably been following this whole fiscal cliff debacle quite closely.  It was beginning to look like Congress would never to come an agreement, but earlier this week they finally did.  For the most part, it means good news for homeowners in the Destin, FL area.

For starters, several mortgage related tax deductions were extended.  This means you can continue to deduct your mortgage insurance premiums – whether for private mortgage insurance or a government program like FHA – through 2013.

Distressed homeowners who may have to sell their home via a short sale can breathe a huge sigh of relief as well.  The Mortgage Debt Forgiveness Act was extended through 2013, so forgiven mortgage debt will be nontaxable.  Long-term unemployment benefits were also extended throughout the year.

And last, but certainly not least, the capital gains tax for middle class earners was left alone and extended.  However, taxpayers with a taxable income over $450,000/$400,000 will have to pay 20 percent on capital gains in excess of $500,000.

If you would like to take advantage of great home values and low interest rates while they last, search Destin, FL real estate now.

Kerry Veach is a Destin, FL Realtor and Real Estate Broker with 22 years of experience assisting thousands in the exciting process of buying and/or selling a home.   He is a member of the RE/MAX Hall of Fame, the RE/MAX Platinum Club, and the RE/MAX® 100% CLUB.  In 2011, he earned the RE/Max Lifetime Achievement Award. 

If you would like to buy a home in Destin, FL or sell a home in Destin, FL, contact Kerry Veach.  With over 1,000 closings and thousands of satisfied clients, it’s no wonder that 95% of Kerry’s business comes from referrals.

Image Credit: FreeDigitalPhotos.net

Did you know that you could save big bucks by installing “green” home improvements such as an energy efficient roof and insulation, a geothermal heat pump, energy star windows and/or doors, or a small wind energy system?

Here’s the breakdown:

A small wind energy system consists of a small turbine which gets wired into your home’s electrical grid.  As the propellers turn, the turbine produces kinetic energy which is then converted into electricity.  This nifty little contraption could lower your electric bill by at least 50%, or $600/year, and can generate 30% – 80% of the electricity needed for an entire household.  It’s also eligible for a 30% tax credit for the total cost of equipment and installation.  A wind turbine is a good investment for households which average at least $150/month in electric bills.  And of course, it doesn’t hurt to live in an area that produces relatively good winds.

Don’t think that because it’s called a geothermal heat pump, it only produces heat.  In fact, a geothermal heat pump serves as a replacement for the more traditional HVAC system.  On top of that, installing one makes you eligible for a 30% tax credit.  And because it uses 25% – 50% less electricity than a traditional HVAC system, so you can save about $600/year on heating and cooling costs.

Anyone who has ever lived in a drafty home understands the importance of good windows and doors.  For storm door or standard door replacements, you can claim up to a $500 tax credit.  For storm windows or standard window replacements, you can claim up to a $200 tax credit.  For skylight replacements, you can also claim up to $200.  The only pitfall to this is that 2011 was the last year you could install to qualify for these credits.

Of course, energy efficient windows and doors will perform much better in a well insulated house.  If you added insulation to your home in 2011, you could qualify for a tax credit up to $500.

If you installed a new heat efficient metal or asphalt roof to your house in 2011, then you could qualify for a $500 tax credit.

And last, but certainly not least on the list, is a non-solar energy efficient water heater.  If you installed on of these in 2011, you can qualify for up to a $300 tax credit on equipment and installation.

To determine if the system or systems you installed qualify for the above mentioned credits, visit the Energy Star Website.  Make sure you save, or have saved, all receipts and certifications for equipment and installations.  And finally, file Form 5695 with your tax returns this year.

If you are thinking of selling or buying a home in the Northwest Region of Florida, contact The Veach Team for a complimentary consultation.

Information Source: http://www.houselogic.com/green-living/

TAX TIME - MID STILL HOLDING ON

I have to say that I, for one, have had a love affair going on with a time-honored Mortgage Interest Tax Deduction (MID).  Up until the housing crisis, from which we are beginning to recover, interest rates weren’t all that friendly, if you remember what I mean, and we have all needed that deduction.

When the  bipartisan deficit-reduction commission, appointed by President Obama, released its sixty-some-page final plan in December of 2010, it was called “The Moment of Truth.” The plan, which included suggestions to cut back on the MID, didn’t get a majority vote.  However, “The Moment of Truth” spelled out the unfriendly facts for all of us to face.

Then, last summer, when the so called, “Super Committee,” was supposed to be working on ways to cut the budget, MID was on the table again, presumably to modify it in order to curb capital gains on home sales, but they were also threatening to modify it for primary residences, to cut it for second homes and HELOC loans. I was worried . . .

Recently I watched an interview between Robert Freedman of REALTOR ® Magazine and Linda Goold, National Association of Realtors ® (NAR) Director of Tax Policy.

 “There is to be no deficit deal from the Super Committee that will be an impact on Realtors ® in 2012,” stated Freedman.  Then when he asked Ms. Goold to comment, she said,  “The news at this point is really good because we know that there will be no immediate proposal to limit the mortgage interest deduction.  This is consistent with the NAR new mantra of ‘Do No Harm.’”

 In November, 2011, we got a tax breather!  For now, we can pay our 2011 taxes and take the deduction.  However, when the committee failed to do anything, it left the House and Senate back where they started–looking for ways to cut the budget.  There will be lots of competing deductions being considered, so don’t think it’s not going to be a dog fight, because it sure is.

In the meantime, we can get on with the business of listing and selling houses to people who want to live in the best of all worlds—the Emerald Coast in Destin or Fort Walton Beach and the surrounding area.

 If you are thinking of buying or selling a home in Panama City Beach, Destin or anywhere in the area—then the Veach Team is prepared to help you find the Florida home of your dreams or the investment property that will put your money to work for you. Contact us today, and let us show you why “Life is a Beach” here in beautiful Destin! And don’t forget to “LIKE” us on Facebook and Twitter – we’d love to talk with you.