If you are looking for a way to fulfill the need for giving back and supporting a good cause, I highly recommend finding your local VFW Post. it will do your heart good and you'll fee fulfilled.
" Did you know that VA has nothing to do with property tax exemptions for disabled veterans, that is handled by the taxing authority (usually the county)?"
Congratulations on your mortgage refinance or home purchase closing! Here is a general overview of some information that may be helpful to you and your CPA as you prepare your 2022 tax returns (the return you'll file by April 2023).
Closing Disclosure Page 2, Section A - If the origination charges on Page 2, Section A of the Closing Disclosure include points paid to your mortgage company to reduce your interest rate, you can deduct those points in the year paid… even if they are paid by the seller. Other fees in this section (application, underwriting, processing, etc.) are NOT tax-deductible. Only bonafide points are deductible if they are expressed as a percentage of the loan amount and paid in exchange for a lower interest rate.
Closing Disclosure Page 2, Section A - If the origination charges on Page 2, Section A of the Closing Disclosure include points paid to your mortgage company in exchange for a lower interest rate, you can deduct those points in the following manner:
Closing Disclosure Page 2, Section F - Property taxes itemized in this section are generally tax-deductible in the year they are paid. However, property tax escrows in section G are NOT tax-deductible until they are actually paid by your mortgage company to the municipality (city, state, county).
Closing Disclosure Page 2, Section F - Mortgage interest is calculated in arrears. This means that your monthly mortgage payment actually covers the month that just passed. For example, your February payment covers the interest for the month of January, your January payment covers the interest for the month of December, and so on. Oftentimes, when you refinance a mortgage or buy a new home, you “skip” a month’s worth of mortgage payments. That is why you sometimes pay "pre-paid interest" or “daily interest charges” in Section F of the Closing Disclosure. These daily interest charges cover the interest for the current month. If your mortgage interest is deductible, then the pre-paid interest that you pay in this section is also deductible (this will be included in the 1098 statement that you receive from your mortgage company).
You may be able to deduct the remaining portion of the original points paid on an old mortgage if you refinanced that old mortgage in 2022. For example, assume you paid points on a refinance transaction 3 years ago. You probably were not able to deduct all the points you paid in the year they were paid. Instead, you had to spread that deduction out over the 30-year life of your mortgage. So, assume you’ve deducted 3/30ths of those points so far, and you refinanced your mortgage again in 2022. You can now deduct the remaining 27/30ths of those old points that you have not yet deducted.
A pre-payment penalty paid on an old loan would be deductible on your 2022 tax returns as long as the new loan was taken out from a different lender than the old loan.
Closing costs not mentioned above are not tax-deductible. However, they are added to your “tax basis” for purpose of calculating your capital gain when you sell the property. In other words, you may be able to reduce your capital gains tax (if applicable) when you sell the property in the future because your home purchase closing costs get added to your cost basis.
Everything mentioned above pertains to a mortgage transaction involving a primary home or vacation home that is elected as a “qualified residence” for tax purposes. If your transaction involved an investment property, see IRS Publication 527.
PLEASE NOTE: THIS ARTICLE IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL, TAX, OR FINANCIAL ADVICE. PLEASE CONSULT WITH A QUALIFIED TAX ADVISOR FOR SPECIFIC ADVICE PERTAINING TO YOUR SITUATION. FOR MORE INFORMATION ON ANY OF THESE ITEMS, PLEASE REFERENCE IRS PUBLICATION 936.
$25,900 for married taxpayers filing a joint return.$12,950 for single taxpayers.
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Every day I get a VA FACT of the Day from our VA NINJA at Success Mortgage Partners.
Today's FACT" Did you know that anyone can assume a VA loan and it doesn’t have to be for a primary residence?"Our VA fact of the day comes from John McDade, who is a VETERAN and our National Director of VA Lending. John's experience dates back to when I was 6 years old ( I am currently 52….go ahead, do the math ), he’s been a part of over 5000 closed VA loans, and he is a “Certified Veterans Lending Specialist” Instructor, and he teaches REALTORS ® all over the country!I am sharing this FACT of the Day and will do every weekday, because I am PASSIONATE about helping Veterans and closing VA loans is one of my favorite loans to close, along with First Time Home Buyers.Please let me know how I can help you with you or your favorite Veteran with any VA questions.Thank you today and every day to ALL our veterans! I know that Freedom is not FREE and I will be forever GRATEFUL for a Veteran’s service.I am ready to serve a Veteran and help them obtain the loan they need, with utmost respect during the process and with the service of excellence they deserve.20+ YEARS EXPERIENCE - Never Missed a Closing Date DON’T intend to ever miss one!#valoans #VAspecialist #homesforheroes #valoanspecialist#certifiedmortgageplanningspecialist #ServingVeterans #supportveterans #letsdothisday #letsmakeadifference #hugaveteran #VAFacts #kathydelbridgemortgageprofessional #homesforheroesmortgagespecialist #successmortgagepartners #partnersmakingadifference #vafactoftheday #valoanassumption
Five ways to build a budget and stick to it
Finalizing, Tracking and Reviewing Your Budget
Now, you’re ready to put all the building blocks together in a final budget. You can document it in a notebook, using a spreadsheet template from Microsoft or Google, or by taking advantage of a budgeting app like Mint, PocketGuard or Wally. Choose the method that you find easiest to use because regularly tracking your actual monthly expenses will help you stick to your budget.
At least once a year, review your budget to adjust for any changes, such as the impact of inflation or a recession on your finances, a pay raise or the attainment of a financial goal.
I am passionate about helping current homeowners and or future homeowners achieve their financial goals. If you'd like to set up a discover call with me, please book time with me by visiting my online calendar at https://calendly.com/kdelbridge-mortgage
Editor’s note: Kathy Delbridge nor Success Partners is affiliated in any way with any of the companies mentioned in this article and derives no benefit from these businesses for placement in this article.
I have always been a huge fan of Zig Ziglar and his some Tom Ziglar is continuing Zig's legacy. I recently purchase one of his books to read and from time to time I get little nuggets of information in my inbox.
I REALLY did like today's because it's all about habits and I'm currently striving to create better habits and squash my bad habits.
Here's today's message from Tim Ziglar.
Choose To Win!