Oh Valentine’s Day. Why is it each year folks have the feeling there is a little more than benevolent pure love in the air?
I suspect it’s because that ‘other' feeling isn't originating from warm caring feelings of one near and dear, and transported from Cupid's bow. But instead, is arriving with the specter of Tax Forms from our not so ambivalent Internal Revenue Service.
Recent tax changes have benefitted some, but wounded others. Much depends on whether the increased personal exemption makes it less beneficial for you to itemize. Each year Americans appear to pay our government more in taxes and come away with less showing from it at the personal level. And, each year we attempt to seek out ways to soften the barb!
It is during this time many realize how much we cherish owning our homes and other real estate holdings as real lifesavers in taxes. While there are certain limits, mortgage interest is still very much deductible as are property taxes. If you own rental property, you may not only deduct these items, but depreciation, insurance and repairs as well.
If you are holding a large equity in your present home, chances are your deduction for mortgage interest is very low or virtually non-existent. Have you ever considered re-financing your home in order to pull out equity to buy an investment property; or perhaps you've wondered about selling and purchasing a more upscale home? Chances are either of these moves could dramatically improve your tax situation. The recent changes to tax law may find you benefitting from conversation with your tax professional to determine what investment moves may benefit you!
Happy Valentine's Day to you as well Myrl Jeffcoat
Have a great day.
February 14, 2019.
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Myrl Jeffcoat
Sacramento, CA
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Anthony Acosta - ALLAT...
Atlanta, GA
Hello Myrl Jeffcoat and thank you for this interesting blog. I need to have a long talk with my CPA this year.
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Roy Kelley
Gaithersburg, MD
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Myrl Jeffcoat
Sacramento, CA
Good morning, Myrl - and certain dates/events are often etched in memory. Hmm. . .why did the Ides of March suddenly pop into my mind. Oh, well. Happy 3rd Monday in February err President's Day. It's always something.
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Roy Kelley
Gaithersburg, MD
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Myrl Jeffcoat
Sacramento, CA
Hi Myrl Jeffcoat - This is a thought provoking blog... very nice. All real estate is local as most will say. In my POV, taxes are very similar. All situations are different and it is up to us to maximize our deductions. We should be consulting a tax and a financial advisor when IRS changes are made.
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Roy Kelley
Gaithersburg, MD
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Myrl Jeffcoat
Sacramento, CA
Anthony Acosta - ALLATLANTACONDOS.COM - Thank you for reblogging this post. It is greatly appreciated!
Will Hamm - This year, more than any other in recent history, will likely find more folks benefitting from tax planning with their CPA or tax professional.
Michael Jacobs - President's Day had completely slipped my mind, until your reminded me. Now I need to check for good sales.
Sheri Sperry - MCNE® - I think it is the IRS that has provided the most change currently. The increased personal exemption has wiped out reason for some to itemize. Analysis of how that impacts each of us needs to happen.
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Michael Jacobs
Pasadena, CA
Myrl,
I love your post...and I had a letter from the IRS in my mailbox addressed to someone else...A sigh of relief...A
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Pat Starnes-Front Gate...
Brandon, MS
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Roy Kelley
Gaithersburg, MD
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Myrl Jeffcoat
Sacramento, CA
Ron and Alexandra Seigel - Learning that the letter from addressed to someone else, must have felt like dodging a bullet. . .LOL
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Ron and Alexandra Seigel
Carpinteria, CA
Yes it did. I wrote on the envelope, "not at this address", but remembered that does not work, as the PO sends it back to you. I went into the post office, and found out, they have to "hand" cancel it. The other reads the mail using AI...A
Happy Valentine's Day to you, Myrl!! The thing that has hit Californians superhard is that we cannot deduct more than $10,000 in the sales tax and property taxes, and I have a lot more than that.
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Roy Kelley
Gaithersburg, MD
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Myrl Jeffcoat
Sacramento, CA
The new tax laws are ones I would love to send a love note in appreciation of. Our family has saved a ton of money.
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Pat Starnes-Front Gate...
Brandon, MS
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Roy Kelley
Gaithersburg, MD
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents - You make a good point about the limitations on tax that can be deducted. However, I believe it exceeds your amount on income property, rather than primary homes and second homes. Again, it is important for folks to check with their tax professionals to determine how they are impacted.
Chris Ann Cleland - There has certainly be some real winners with the new tax laws. However, many who once itemized now find the changes have been to their detriment because the individual personal deductions have scuttled incentive to itemize. For me personally, the changes don't seem to have made a difference!
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Chris Ann Cleland
Gainesville, VA
Thanks much for this reminder. I'm with you, it might be worth a discussion with a tax pro. It will be interesting to see how they impact us this year. D
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Roy Kelley
Gaithersburg, MD
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Myrl Jeffcoat
Sacramento, CA
Myrl hope today was a very special Valentine's Day for you
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Roy Kelley
Gaithersburg, MD
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Myrl Jeffcoat
Sacramento, CA
Great thoughts which I know I appreciate. Happy valentines day Myrl Jeffcoat
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Myrl Jeffcoat
Sacramento, CA
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Roy Kelley
Gaithersburg, MD
I am anxious to see if the changes will affect me in a positive way, but so far, I don't see much difference. It feels as if I have paid the same as I always do.
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Myrl Jeffcoat
Sacramento, CA
Thanks, Myrl, for sharing your advice.
I hope you enjoyed a very special Valentine's Day.
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Myrl Jeffcoat
Sacramento, CA
The recent 'tax cut" bill was totally bogus for many homeowners in high priced states.
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Roy Kelley
Gaithersburg, MD
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Myrl Jeffcoat
Sacramento, CA
Myrl, great advice about pulling cash out reap the benefit of tax write off and get another income producing property... I would love to do it, but will not be able to convince Diane, with that said Happy Belated Valentines Day to you, Endre
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Myrl Jeffcoat
Sacramento, CA
The change in tax laws will definitely help some, hinder others. Your reminder for folks to contact their tax accountants for advice is a good one. Happy Belated Valentines Day, and Happy Presidents Day!
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