Tax Benefits For Home Owners – Make the Most of Orange County Real Estate

Posted on February 11, 2013. Filed under: First Time Buyer help, Informed Investor Alliance, Making Life Easier, Orange County Real Estate | Tags: , , |

As an Orange County Realtor, I can’t technically offer advice on taxes, but I always try to network and meet great tax professionals who can help our clients! Today I sat in on a great session by Irene Mack, CPA, and I wanted to share some notes and insight with you. Irene’s website is http://www.oc-cpa.com if you have any particular questions – she is always happy to talk taxes with you :)

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Homeowner Tax Benefits

- Mortgage debt relief on up to 2 million loss ($1M if married / filing separate)

Will California extend our debt relief? The answer is still up in the air, but there is a bill on the table. This concerns many homeowners who are thinking about a short sale, so be sure to contact your legislators and let them know you want an extension!

Energy Tax Credits for Homeowners

- many have a $500 max lifetime credit
– some include on site installation costs, some don’t, so be sure to check
– must be on principal residence
– includes central air
– allows tankless water heaters
– solar
– geothermal
– energy star

California Short Sale Tax Benefits

Sb931 focuses on 1st Trust Deed, and ensures lien holders can’t come back to homeowners for deficiency judgement after the short sale.

Sb458 focuses on 2nd trust deeds, and this law came a little after sb931 to help homeowners steer clear of judgements from 2nd mortgages and HELOCs.

Equity Sale Tax Benefits

- No taxes on $500k profit for married couples
– No tax on $250k profit for single filers

Capital Gains Taxes

Will you be taxed if you sell for a profit? Yes, unless your profit is below the $500k/$250k mentioned above.

- Long term (1 year and one day+) is determined on your tax bracket
– It’s best to keep your home ‘long term’ when it comes to taxation

First Time Homebuyer Tax Credit

- 2008 credit – when your home is no longer your personal residence, the balance of repayment becomes due immediately instead of over 15 years, so be careful!

-2009-2010 credit – 36 months of primary residence is required, most of you are almost ready to move up with no penalties ;)

Wow!! Taxes are confusing!!! Make sure to consider your tax benefits and / or penalties when you go to sell your home in Orange County. Irene’s number is 714-957-6936 if you’d like more info.

Remember The Weeks Team is here to help you navigate through tough real estate waters. Be sure to call 877-230-3211 or comment here if we can help you in any way!

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2 Responses to “Tax Benefits For Home Owners – Make the Most of Orange County Real Estate”

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I am curious to find out what blog system you have been using?
I’m having some minor security issues with my latest site and I would like to find something more risk-free. Do you have any recommendations?

Hi Fawn! We are using wordpress for blogging – its a really good platform and it’s *mostly* free ;) Check it out and let us know what you think!


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    Orange County, CA Real Estate for hip first-time buyers and investors. Plus, fun things to know and do in OC.

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