Delayed Financing Rule : Pay Cash For A Home, Cash-Out Refi Next Day

Dan Green

If you paid cash for a home within the last 6 months and want to take "cash out", you can. It's because of a new mortgage allowance named the Delayed Financing Rule.

The standard 6-month seasoning requirement on home purchases has been eliminated.

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America's Best And Worst Job Markets

Brian Wingfield and Janeace Slifka, 01.06.11, 02:30 PM EST

Washington, D.C., is hot, and so is Austin. Miami and Southern California lag badly.

WASHINGTON, D.C. -- As 2011 gets underway, Washington, D.C.--flush with government and government-supporting jobs--has the healthiest labor market among major U.S. metro areas. By one estimate, there's roughly one advertised job opening for every unemployed worker in the D.C. region, which includes parts of Maryland and Virginia. The nation's capital has an unemployment rate of just 6%, according to the latest data. That's the lowest among the country's largest 50 metros, and 3.8 percentage points below the national average.

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6 Tax Breaks That Anyone Can Claim

by Annie Mueller - investopedia.com

If the thought of doing taxes makes you break into a cold sweat, you're probably like many of us; fearful of making a mistake and having the IRS show up at your door. Tax forms can be complicated, but don't let the complexity scare you away from tax credits that are legally yours to claim. Tax deductions and credits aren't just for big companies and finance-savvy folks. Look over the list below; you might be surprised how many tax breaks -- in the form of both credits and deductions -- can be applied to your tax return.

1. Charitable Donations
Most cash donations made to charity in the tax year can be claimed as an itemized deduction on your tax return, but many folks don't realize that non-cash contributions can be claimed as well. If you've donated to a charity or non-profit organization using your credit card, you can claim that donation. If you've donated material goods or services, be sure that you have a receipt from the charity stating the value of the goods or services you donated. You can claim that value as a charitable deduction.

2. Child Care Credit
If you pay for child care regularly while you are at work, you may be eligible for a tax credit. The amount of care covered can be up to $6,000 for the care of two or more children, according to Kevin McCormally, the Editorial Director of Kiplinger.com. Be sure to keep clear records; paying your child care provider in cash while keeping no traceable record of the payment will make it extremely difficult to claim the amount on your tax return.

3. Home Energy Efficiency Improvements
If you have to make any home improvements, go with the energy efficient options. Consumers can claim 30% of the cost, up to $1,500, of energy efficient home improvement items, such as "energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes," according to the Department of Energy. So replace those doors and windows by the end of the year and get a break on your taxes.

4. Residential Renewable Energy Tax Credits
Another "green" tax break is for renewable energy additions made to your home. The Department of Energy includes "solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems". Home owners can get a tax credit of up to 30% of the cost of these improvements. When you consider how much money this type of renewable energy will save you in lower electric bills over the years and combine that with the 30% tax credit, greening your home begins to look like a pretty smart move.

5. Automobile Tax Credits
Get green on your commute and you could see more green on your tax return. Purchase a hybrid gas-electric or alternative fuel vehicle before the end of 2010, and you can get a credit on your taxes. Amounts vary according to what type of vehicle you purchase and some credits are phased out as dealers sell a certain amount of cars, so be sure to ask your car dealer before you purchase. If you're a DIY person, you can also get a tax credit for 10% of the cost of a plug-in hybrid conversion kit.

6. Relocating for Work
Whether you're moving for your very first job, for a new job or for relocation with your current employer, you can recover some of your relocation expenses. You have to validate your move by passing a couple of "tests". The first test involves the distance. The distance from your new work location to your former home has to be at least 50 miles longer than your previous commute. The second test is just a way of proving that you actually moved for the job; you have to be employed for at least 39 weeks out of the 12 months immediately following your move, in the vicinity of your new job. You don't have to actually be employed with the same company, just in the same general area.

Bottom Line
Don't be fooled into thinking that tax credits and deductions are for everybody but you. Simply donating, working and improving your home can add up to significant savings on your taxes, so start getting out those receipts and adding up the numbers. Document what you claim on the deductions and ask your tax professional if you have any questions about what you can claim. Then go for it; you might be getting a much bigger refund than you thought.

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Why 2010 is a great time to invest in real estate

by Christina Mendoza - helium.com

One of the easiest ways of making a significant profit on your real estate investment is to seek out the real bargains selling for much less than their actual value. Out of all the investment opportunities available to you in 2010, acquiring real estate is an option that deserves serious consideration. Property ownership has long been a method employed by savvy investors to preserve and increase the value of their money. Current conditions in the housing and lending markets make investing in properties more attractive than ever, with mortgage rates the lowest they've been in 50 years, and home prices dropping to about half of the peak seen several years ago. The return on a real estate investment purchased in the near future is likely to be far more substantial than the profits available from competing types of investments.

Investment Options

There are many different strategies investors can choose from in their attempts to make their money grow. Buying stocks or bonds, earning interest on savings accounts or certificates of deposit (CDs), and obtaining valuable commodities such as gold are all possible methods of investing one’s money. As one of the many choices, real estate investment – whether it is as basic as owning one’s residence rather than renting, or as advanced as acquiring millions of dollars’ worth of rental properties – has a long history of being one of the safest and most lucrative investment techniques

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Merger of Lisa Carter CPA and Paul Hodge CPA into one Company

Dear Client and Friends,

I wanted to take this opportunity to inform you that I have decided to merge my CPA practice with Paul Hodge CPA & Associates, PLLC. This will give me an opportunity to focus on what I do best and to spend more time with my family.

I spent a great deal of time and effort researching firms who would provide the quality of service my clients are accustomed too. During this process.I found Paul Hodge & Associates, PLLC is the right firm to help me increase the quality of service for my clients. I am confident that the merger with Paul Hodge is the right move to better serve your accounting and tax needs.

Paul Hodge has been a CPA for over 13 years. His qualifications are excellent as a CPA in private accounting and he specializes in small business and real estate. Paul is greatly involved on the community form his many public lectures on taxes, monthly investors meetings and his radio appearances on AM 650 CBS Radio. Please check out Paul's website at cigarcpa.com.

In order to accommodate our staff, we have moved our office to consolidate with Paul Hodge CPA & Associates, PLLC. The new office location is 3934 FM 1960 W, Suite 105, Houston, TX 77068. Our old phone numbers will be rolling over to the new office but an additional number to use is 281-580-2180. Our fax number will also roll over, but another number to use will be 281-580-1339. All email addresses will stay the same.

We are trying to make the transition as seamless as possible. Paul and I are eager to work with you to make sure that the only difference you notice will be the addition of another high quality CPA who cares about his clients and their business. You are very important to me, both in business and personally, and the is why i have decided to take this action.

I look forward to working with you with the added support of Paul Hodge CPA & Associates, PLLC.

Yours Very Truly,
Lisa Carter, CPA

Taxing The Rich

Real estate investors may luck out the most because federal law characterizes rental income as "active"

By Randy Neumann
NorthJersey.com

"Tax the rich, feed the poor till there are no rich no more. I'd love to change the world, but I don't know what to do, so I'll leave it up to you."

Lyrics from "I'd Love To Change The World"

Ten Years After

This song was sung by a blues/rock band from Nottingham, England where Robin Hood allegedly stole from the rich to give to the poor. They took their name because it was 10 years after what lead singer Alvin Lee considered the birth of rock-and-roll due to the great year that Elvis Presley had in 1956. They played at Woodstock and "I'd Love To Change The World" made it to the Top 40 chart here in the U.S.

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