Linda White
Schrack Realty
615 Washington St.,
Huntingdon, PA 16652
814-643-6000, 814-571-0804
Your move matters to me!
HAPPY 2020!
I hope you enjoyed a terrific 2019 and that this year, 2020, will be even more amazing!
New year, new you? It’s not just a time to make resolutions to eat right and exercise more. It’s a time to look over your assets and financials. Soon your w-2’s and 1099’s will be arriving and you will be assembling everything for completing your tax return.
If you bought or sold property in 2019, make sure you take advantage of any tax breaks you can possibly get. I highly recommend using accountants because they are the pros at what they do. I would not trust myself to be up-to-date on changes made by state and federal governments. Whether you use a pro or do your return yourself, pull out a copy of your settlement sheet. If you cannot find one, let me know and I will send one from our files.
Even if you bought before 2019, you may have had to pay PMI (private mortgage insurance). (This often happens if you did not have 20% downpayment.) You may have forgotten about this as it is blended in with your actual mortgage payment. However, if you have paid down the balance or your property value has increased, you may be able to have your lender remove the PMI amount, saving you money. The magic number is 80%...if the amount you owe (principal) on your home’s value is 80% or less, you have 20% equity and you may be able to eliminate the PMI. If it’s been a few years and you want to get an idea of value, let me know. I can’t do an appraisal but I may be able to arm you with some info so you can discuss this option with your lender.
If you bought a second home and plan to use it sometimes and rent it out other times, there are some tax rules that determine whether you can use the expenses as deductions.
If you bought a house that is used as your only home or primary residence, you may qualify for the Homestead exemption. This is a credit against your school taxes which run from 7/1 thru 6/30 each year. The number fluctuates but it can be several hundred dollars. If you haven’t applied for this, you can find the forms at http://www.huntingdoncounty.net/Dept/TaxAssessment/Documents/Homestead%20application%202015.pdf or call me and I will print one for you.
Investing some money in property is a very wise choice. In most cases, property values will increase annually if you just keep up your place. Updating or adding on can help really boost the value. If you feel your money in CD’s, savings, IRA’s, etc. isn’t working very hard for you, maybe you want to explore more real estate investing. If I can be of assistance to you or someone you know, please give me a call!
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