Summit County FHA Loan Limits

Good news for Summit County, Breckenridge, Keystone, and Copper Mountain Home Buyers!  FHA loan limits have been restored to the previous high limits!  If you live in Summit County for your Primary Residence, you may qualify!


Victory! FHA Loan Limits Extended for Two Years

In case you have heard the great news, shortly before Congress recessed for the year, they managed to restore FHA loan limits in high cost areas to the original level of $729,750 for an additional two years. This is an important victory for the mountain resort areas where high cost loans are an important part of the market. According to NAR, higher loan limits will make mortgages more accessible with nearly two-thirds of buyers who will be helped by the loan limits extension have an income below $100,000.

Will this work for your Colorado Mountain Retreat?  Call, Text or Email 970 368 2709

BRECKENRIDGE SKI CONDO MARKET REPORT

Is a Breckenridge Ski Condo your Perfect Colorado Mountain Retreat?

Keystone Condo Market Analysis

Thinking that a Condo in Keystone is your Perfect Colorado Mountain Retreat? Watch this video to find out how the market is performing!

Larry Stone answers some Tax Questions!

Our friend Larry has some great information regarding the tax on sale of your home to fund the new nationalized healthcare plan.  here's what he has to say-


Hi!-
Life would be a lot easier for all of us if tax laws didn't change all the time. Every year, Washington writes new laws. The IRS writes new regulations interpreting those laws. The Tax Court issues new decisions interpreting those regulations. And the IRS issues enough revenue rulings, revenue procedures, private letter rulings, and similar proclamations to keep an army of accountants and attorneys gainfully employed.
Sometimes, in the midst of all that motion, facts get twisted and misinterpreted. Sometimes a rumor gets launched that takes on a life of its own. Right now, there's an email going around that has most of us tax professionals shaking our heads. It warns that, starting in 2013, the healthcare reform act imposes a 3.8% sales tax on home sales. If you sell your $400,000 home, you'll owe a $15,200 tax!
If you see it in an email, it must be true, right? The truth, as is often the case with taxes, is a little more complicated than that - and a lot less scary. First, let's take a look at how taxes are figured on home sales today:

• First, calculate "adjusted sale price." This is the sale price of the house, minus expenses of actually selling it (last-minute fixups, commissions, etc.).
• Next, subtract "adjusted basis." This is the price you paid for the house, plus closing costs, plus any improvements you make that add value, prolong its life, or give it a new or different use. "Adjusted sale price" minus "adjusted basis" equals "gross profit."
• If you've owned your home for more than two of the last five years and used it as your primary residence for more than two of the past five years, you can subtract a "Section 121 exclusion" of up to $250,000 if you file individually or $500,000 if you and your spouse file jointly. If you don't meet the two-year requirement, you can still take a pro-rated exclusion reflecting how long you did meet those requirements.
• "Gross profit" minus "allowable exclusion" equals taxable gain. If you hold your house longer than a year, it's taxed as long-term capital gain and capped at just 15%.

The bottom line here is that few home sales are taxable - especially in today's down market - because of that Section 121 exclusion. So, where does the new healthcare law come in? Well, it does impose a new "unearned income Medicare contribution," beginning in 2013, of 3.8% on capital gains, for individuals earning over $200,000 and families earning over $250,000. (Don't you love how the folks in Washington spin that 3.8% "unearned income Medicare contribution"? Wouldn't it just be easier to call it a "tax"?)
That means any gain on the sale of your home that isn't already sheltered by the $250,000 or $500,000 exclusion might be subject to the new tax if your adjusted gross income is over the $200,000 or $250,000 threshold. That's a pretty far cry from saying there's a new 3.8% sales tax on home sales!
But somewhere along the line, Chicken Little saw the new 3.8% tax, missed the rest of the process, and saw the sky starting to fall. Being a thoroughly modern chicken, she hopped on her computer to fire off an email telling all of us that the sky was falling - and that email spread faster than the latest news about Snooki or the Kardashians. So now here we are, setting the record straight.
The next time you get an email with a rumor that sounds too awful to be true, don't just run around like Chicken Little. Send it to us. We can tell you if it's something you really need to worry about - and if so, we'll help you craft a plan to avoid or minimize the threat!

Larry D. Stone
Stone CPA
970.668.0772
970.668.0434
888.668.0772
larry@stone-cpa.com
Please visit our new web page at www.coloradotaxcoach.com


Thanks Larry for helping us with great advice and Info!  Now people can feel a little better when they want to sell their Colorado Mountain Retreat!

Keystone Single Family Home Market Analysis

Great Information if you are considering buying a Keystone Home!

Let us help you find your Perfect Colorado Mountain Retreat!

Financial Facts: How to avoid a contract faux pax | SummitDaily.com

Financial Facts: How to avoid a contract faux pax | SummitDaily.com

Thanks to Bob Kieber for this excellent article regarding some potential pitfalls with your purchase contract and mortgage! Remember to consult professionals and have a Buyer's Agent when you purchase your Colorado Mountain Retreat!

Dillon CO Single Family Home Market Analysis

Tell us how we can help you find your Perfect Colorado Mountain Retreat!

Tour Summit's finest at Parade of Homes | SummitDaily.com

Tour Summit's finest at Parade of Homes | SummitDaily.com

Get to the Summit County Parade of Homes! Get some Great Ideas for your Colorado Mountain Retreat!

Blue River Real Estate Market Analysis

Wondering How the market for homes south of Breckenridge is?  Looking for a home in Blue River or Northstar Village?

Watch the Breckenridge Real Estate Market Analysis Video!



Helping You Find Your Perfect Colorado Mountain Retreat!

Some Tax Facts

Thanks to my friend Larry Stone for this informative article.  One thing he didn't mention is that the top 5% of earners pay 69% of all tax monies paid to the federal government. Real Estate Investment is a great way to utlize the tax code in your favor for wealth creation!

Hi!-

Years ago, comedian Steve Martin gave us an easy formula for making a million dollars without paying tax. "First . . . ya get a million dollars." Then, when the tax man comes to your door and says you never paid taxes, just tell him "I forgot!" That's a great plan, assuming you can get your hands on the million bucks and you're willing to take your chances with the tax man. But what about those of us who don't have a million dollars and those of us who remember we have to pay taxes? Are there better ways for getting that tax bill down to zero?

The Washington-based Tax Policy Center estimates that a full 46% of Americans pay no federal income tax. And those non-payers represent a surprisingly broad cross section of Americans. Over 10% of them report incomes over $50,000. And in 2008, there were 18,783 who earned over $200,000 and owed no federal income tax. So, how do they do it?

About half of the non-payers just don't make enough money to owe any tax. They rely on the standard deduction and personal exemptions to avoid any tax on their income. But the Tax Policy Center identified 38 million Americans who rely on one or more tax expenditures to pull their tax down to zero. ("Tax expenditure" is Washington-speak for tax provisions like deductions and credits that reduce tax revenue.)

• Seniors: 44% of non-payers benefit from the extra standard deduction for those over age 65, the elderly tax credit, and the exclusion of Social Security from taxable income. (The TPC study calls these "elderly tax benefits" - our own unscientific survey shows that half of all seniors don't mind being called "elderly" if it means paying less tax!)
• Families: 30.4% of non-payers benefit from the child tax credit, the dependent care credit, and the earned income tax credit. (It's worth noting that if the Bush tax cuts actually expire on schedule after 2012, the child tax credit will disappear - throwing millions back into the "taxpayer" category.)
• Beneficiaries: 6.0% draw income from tax-free benefit programs, including Supplemental Security Income and Temporary Assistance for Needy Families.
• Students: 5.6% benefit from education credits to eliminate their tax.
• Adjustments: Another 5.1% of non-payers benefit from "above the line" deductions like self-employed health insurance and student loan interest and from tax-exempt interest income.
• Itemizers: 5.0% benefit from itemized deductions like mortgage interest, state and local taxes, and charitable gifts. (The Obama administration has proposed limiting the value of itemized deductions for higher-income earners to just 28%; however, in today's anti-tax climate, the President is about as likely to appear on Jersey Shore as he is to raise taxes.)
• Credits: 2.5% benefit from other credits, including the Savers Credit for retirement savings and the general business credit.
• Investors: Finally, 1.3% benefit from the special 0% rate for certain capital gains and qualified corporate dividends.

If you're like most clients, you see something on that list that saves you taxes, even if it's not enough to pull your taxes all the way down to zero. It's our job to help you take advantage of all of those strategies and more. If you know someone who's not happy with the taxes they pay, pass along this email, and we'll see how we can help!

Larry D. Stone
Stone CPA
970.668.0772
970.668.0434
888.668.0772
larry@stone-cpa.com

Please visit our new web page at www.coloradotaxcoach.com