Vermilion Realty Blog » Taxes

A Brave Man – Update

Don Grafues — Tue, 27 Jul 2010 14:11:55 +0000

Yesterday we posted:

Mark Zandi is a brave person. He is a head economist at Moodys. In an address at a real estate forum sponsored by the U.S. Chamber of Commerce he said,

There is no other sector in the economy that has received more support than your industry, and it’s time to give back.

Take a look at this article published today on azcentral.com. As homeowners, have we anything left to give back?

Resource: azcentral.com

A Brave Man

Don Grafues — Tue, 27 Jul 2010 00:35:15 +0000

Mark Zandi is a brave person. He is a head economist at Moodys. In an address at a real estate forum sponsored by the U.S. Chamber of Commerce he said,

There is no other sector in the economy that has received more support than your industry, and it’s time to give back.

He was referring to the mortgage-interest deduction that costs the U.S. Treasury more than $100 billion a year. He sees elimination of mortgage interest and property tax deductions as a way to help reduce the deficit.

The housing market is suffering enough and this is not the time to consider such draconian measures.

Resource: REALTOR®Mag

Agricultural Land Assessments

Don Grafues — Sat, 10 Jul 2010 21:47:58 +0000

We recently had an inquiry from a client regarding property taxes for agricultural use versus residential use. We checked with the county and yes, land can be assessed for agricultural use with the possibility of lower property tax.

A few of the basic requirements are;

Land must be used for commercial production.
Land must have been in production 7 of the last 10 years.
A reasonable operating profit must be possible.
Farm land is used for crops and be at least 20 gross acres.
Ranch land is used for grazing and must be able to sustain 40 animals on uncultivated, natural forage crops.
Exceptions to the acreage and number of years in production may be granted under certain conditions.
Agricultural land is valued using an income approach without consideration of market value.

By clicking on the images below, (click twice for larger size) you can read the document titled “Agricultural Land Assessments” from the Office of the County Assessor. You can also get a copy of the Agricultural Land Use Application here.

Agricultural Land Assessment - Page 1
Click twice to enlarge

Agricultural Land Assessment - Page 2
Click twice to enlarge

Resource: Office of the Cochise County Assessor

Tax Credit Deadline Approaching With No Extension

Don Grafues — Tue, 29 Jun 2010 12:29:56 +0000

Extension of the tax credit deadline may be at risk.

To qualify for the tax credit buyers had to close on the transaction by June 30. Some of the issues facing 1^st time buyers include; lenders are taking a long time to decide on short sales, appraisals are low and property inspections are revealing issues

We have an issue with a buyer who applied for a USDA loan but when Congress delayed funding the program, USDA suspended lending for a period of time. Now they are trying to catch up but meanwhile, our borrower is probably going to miss the June 30 deadline to qualify for the tax credit.

Congress is looking at extending the closing deadline to September 30 but the votes are not yet there. If the deadline is not extended, approximately 200,000 buyers will fail to qualify. With the loss of the tax credit it is expected that some of these buyers will withdraw from the contract to purchase putting more homes on the market.

Resource: REALTOR®Mag

Deadline Extension Over First Hurdle

Don Grafues — Fri, 18 Jun 2010 13:22:12 +0000

The Senate votes to extend the final closing date on open escrows qualifying for the 1^st time home buyer tax credit from April 30 to September 30. This will give roughly 180,000 buyers likely to miss the June 30 deadline an opportunity to still qualify. The House has yet to vote on the measure. Click to read out prior post on this topic “Deadline May Be Extended.”

Resource: REALTOR®Mag

Tax Credit Denied?

Don Grafues — Fri, 18 Jun 2010 12:06:04 +0000

REALTOR®Mag offers suggestions for 1^st time home buyers in applying for the tax credit. If you have claimed mortgage interest on prior tax returns your tax credit may be rejected. The interest could be on a time share, mobile home or other real property yet you still qualify for the tax credit. The article provides guidance on how to be proactive if you are applying for the credit on your 2010 tax return. It also tells you how to work with the IRS if you were rejected on your 2009 return.

Resource: REALTOR®Mag

Home Buyer Tax Credit Ending Felt In New Construction

Don Grafues — Thu, 17 Jun 2010 12:58:07 +0000

Home buyer tax credit expiration impacting new construction.

Building on yesterday’s post about mortgage applications being down (but up last week), the end of the home buyer tax credit is having an effect on new construction as well. REALTOR.org® had two articles yesterday. The first reported on May housing starts falling 10 percent compared to April. The second reported on home builder confidence falling.

Resource: REALTOR.org®

Tax Credits End, But Not For All Of Us

Don Grafues — Thu, 29 Apr 2010 14:46:29 +0000

And speaking of home buyer tax credits, while tomorrow marks the last day to sign a contract and qualify for most of us, military service members have until April 30, 2011. Details here.

Resource: REALTOR.org

Pricey And Successful

Don Grafues — Thu, 29 Apr 2010 14:40:38 +0000

That is how the home buyer tax credit program is described. Critics say two thirds of the buyers would have purchased anyway. Sen. Johnny Isakson (R, Georgia) thinks that the credits may have been the incentive to get buyers who would have purchased a home in 2012 or 2013 to buy in 2009/2010, when it was needed.

Resource: REALTOR.org

Property Tax Exemption Deadline

Don Grafues — Tue, 23 Feb 2010 15:00:39 +0000

The Cochise County Assessor is reminding property owners that the deadline for filing a personal or organization tax exemption is March 1.

Also, September 1 is the deadline for filing a Senior Property Tax Valuation Freeze Option if the owner is 65 years of age or older. You can read an article in The Herald by clicking here.

Don Grafues
Resource: County Assessor & The Herald