Sean La Rue
SeanLaRue.com
760-835-5663
Twitter: www.twitter.com/seanlarue
Sean La Rue
SeanLaRue.com
760-835-5663
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Make It A Great Day,
Sean K. La Rue
Sr. Vice President | Franklin Loan Center | Se Habla Español
Direct: 760-837-1488 | Mobile: 760-835-5663 | Fax: 800-784-9089
44-800 Village Court Palm Desert, CA 92260
“Your KEY to Moving Home!”
Let's Get Connected!
Facebook | Twitter | YouTube | Linkedin
Sean's Mortgage WebSite | Sean's Mortgage Blog | Click for Sean's Weekly Update | Click for Sean's Monthly Update
Sean La Rue
SeanLaRue.com
760-835-5663
Rates are great, but they won’t stay at these levels much longer. Make sure to explain to your clients that rates will be on the rise in the coming months.
Leverage my knowledge and experience in the mortgage business to help make you $$$$$$$$$. We can still close loans in 30 days, and we mean it.
30 Year Fixed Rates at 5%.............
5 Year Fixed Rates BELOW 4%................
Market Update
First-time homebuyers tax credit is set to expire June 30, 2010, so get you buyers off the fence and tell them to buy NOW. Below is a review of the first-time homebuyer extension.
Homebuyer Tax Credit Update!
On November 6, 2009, President Obama signed a bill to extend the tax credit for first-time homebuyers (FTHBs) through June 30, 2010. The bill also opens up opportunities for others who are not buying a home for the first time.
To learn what the new tax credit means to you and your clients, take a look at the concise overview below.
In addition, we’ve put together a script featuring wording you can cut and paste as needed to beat out your competition by connecting with clients who may be able to benefit from the new plan details!
TAX CREDIT OVERVIEW
Who Gets What?
First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
What are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
What are the Income Caps?
The amount of income someone can earn and qualify for the full amount of the credit has been increased.
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
What is the Maximum Purchase Price?
Qualifying buyers may purchase a property with a maximum sale price of $800,000. What is a Tax Credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.
How Much are First-Time Homebuyers (FTHB) Eligible to Receive?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.
Who is Eligible fort FTHB Tax Credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible.
This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.
As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.
How Much are Current Home Owners Eligible to Receive?
The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.
Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed.
According to the IRS, factors that would demonstrate the ownership of the property would include:
1. Right of possession,
2. Right to obtain legal title upon full payment of the purchase price,
3. Right to construct improvements,
4. Obligation to pay property taxes,
5. Risk of loss,
6. Responsibility to insure the property, and
7. Duty to maintain the property.
Are There Other Restrictions to Taking the FTHB Credit?
Yes. According to the IRS, if any of the following describe a homebuyer’s situation, a credit would not be due:
Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?
Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.
If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?
Yes, provided that the child meets the other requirements for the tax credit.
Make It A Great Day,
Sean K. La Rue
Sr. Vice President | Franklin Loan Center | Se Habla Español
Direct: 760-837-1488 | Mobile: 760-835-5663 | Fax: 800-784-9089
44-800 Village Court Palm Desert, CA 92260
“Your KEY to Moving Home!”
Let's Get Connected!
Facebook | Twitter | YouTube | Linkedin
Sean's Mortgage WebSite | Sean's Mortgage Blog | Click for Sean's Weekly Update | Click for Sean's Monthly Update
ROTH IRA CONVERSIONS FOR 2010
A unique opportunity for IRA owners.
provided by Max Briggs, CFP®
In 2010, anyone may convert a traditional IRA to a Roth IRA. No income limits will stand in the way of the conversion.1 Should you do it? Here’s why it may (or may not) make sense for you to go Roth next year.
Why you might want to consider it. A Roth IRA permits tax-free growth and tax-free income distributions in retirement (assuming you are age 59½ or older and have held your Roth account for 5 years or longer). You can contribute to a Roth IRA after age 70½, without having to take mandatory withdrawals. While contributions to a Roth IRA aren’t tax-deductible, the younger you are, the more attractive a Roth IRA may seem.2
However, older investors have reason to go Roth as well – especially if they don’t really need to withdraw IRA assets. Under present tax law, converting an untapped traditional IRA to a Roth will shrink the size of your taxable estate, and careful estate planning could foster decades of tax-free growth for those IRA assets.3
Currently, if you name your spouse as the beneficiary of your Roth IRA, your spouse can treat the inherited IRA as his or her own after you die and forego withdrawals. So those Roth IRA assets can keep compounding untaxed across the rest of your spouse’s life.
If your spouse then names a son or daughter as a beneficiary, that heir has the choice to make minimum withdrawals according to his or her life expectancy, all while the assets continue to compound tax-free. Currently, withdrawals from an inherited Roth IRA are not subject to income tax.3
Why you may want to think twice about it. The IRS regards a traditional IRA-to-Roth IRA conversion as a distribution from a traditional IRA – a taxable event.4 You’ll need to pay taxes on the entire amount of the conversion. Do you have the money to do that?
Keep in mind, however: with the market down, many IRA values are lower than they have been for years. That translates to paying less tax on gains. It is also worth remembering that tax rates could increase in the years ahead – another reason why now may be a good time to convert. (You could simply do a partial Roth IRA conversion if converting the full amount would send you into a higher tax bracket.)4
You may be tempted to use the current IRA assets to pay the conversion tax, but should you? If you’re younger than 59½, you’re looking at a 10% penalty on the amount you withdraw, and you’ll lose the chance for tax-free compounding of those assets within the Roth IRA.5
A potential tax break for those who convert in 2010. If you do a Roth conversion during 2010, you can choose to divide the taxes on the conversion between your 2011 and 2012 federal returns.8
Be sure to consult your tax advisor before you convert. This is a very good idea before you arrange any rollover, trustee-to-trustee transfer, or same-trustee transfer of your IRA assets. In any year, you should fully understand the potential tax impact of a Roth conversion on your finances and your estate. Also, remember that while the income limit on Roth IRA conversions will go away in 2010, the income limits on Roth IRA contributions still apply next year and for the foreseeable future.8
FLC Capital Advisors is a Registered Investment Advisory Firm licensed with the State of California. Securities offered through Securities America, Inc: Registered Broker/Dealer: Member FINRA * SIPC *Max Briggs * Registered Representative * CA Insurance License # OB85518 * Danny Neil * Registered Representative * CA Insurance License # 0D54831 * FLC Capital Advisors and Securities America all not affiliated.
These are the views of Peter Montoya Inc., not the named Representative nor Broker/Dealer, and should not be construed as investment advice. Neither the named Representative nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information.
Citations.
1 kiplinger.com/magazine/archives/2009/01/sweet-deal-on-roth-ira-conversion.html [1/09]
2 thestreet.com/print/story/10505164.html [5/26/09]
3 smartmoney.com/personal-finance/retirement/estate-planning-with-a-roth-ira-7966/ [1/22/09]
4 smartmoney.com/personal-finance/retirement/roth-iras-you-wanted-to-know-7967/ [1/9/08]
5 smartmoney.com/personal-finance/retirement/roth-iras-to-convert-or-not-7965/ [1/10/08]
6 online.wsj.com/article/SB123033785000236433.html [12/26/08]
7 usnews.com/blogs/planning-to-retire/2008/12/23/president-bush-signs-pension-relief-bill.html [12/23/08]
8 kiplinger.com/columns/ask/archive/2009/q0601.htm [6/1/09]
Make It A Great Day,
Sean K. La Rue
Sr. Vice President | Franklin Loan Center | Se Habla Español
Direct: 760-837-1488 | Mobile: 760-835-5663 | Fax: 800-784-9089
44-800 Village Court Palm Desert, CA 92260
“Your KEY to Moving Home!”
Let's Get Connected!
Facebook | Twitter | YouTube | Linkedin
Sean's Mortgage WebSite | Sean's Mortgage Blog | Click for Sean's Weekly Update | Click for Sean's Monthly Update
We have amazing talent at Franklin Loan Center! Click below. Don’t forget to rate, comment, subscribe and share with your friends!
Posted by Catherine Faas to Holy Kaw!
Ah, Valentine’s day. February fourteenth marks that special moment in the year when Hallmark cashes in on our emotions and cupid gets busy shooting arrows. Whether you’re indifferent, excited, upset, or madly in love—there are seven things you just shouldn’t do on this lovey-dovey holiday.
See a few do-not-do’s below:
Full story at Divine Caroline.
More on dating.
Photo credit: Fotolia
Dear Realtors, Sellers, Home Buyers, and Investors!
Want to learn more about social media? If you think you can escape without knowing you’re wrong. The link below is a playlist of videos I recorded from my social media seminar. Don’t forget to subscribe, rate, comment and forward the video if you think someone else might find the information valuable.
http://www.youtube.com/user/SeanLaRueHomeLoans#grid/user/C456235359232774
The second link is an update on mortgage products and financing for USDA, FHA, and VA financing also with eh FHA 90 day flip rule. Click to view Now!
Part 1
Part 2
Thanks and make it a great week!
Sean K. La Rue
Sr. Vice President | Franklin Loan Center | Se Habla Español
Direct: 760-837-1488 | Mobile: 760-835-5663 | Fax: 800-784-9089
44-800 Village Court Palm Desert, CA 92260
“Your KEY to Moving Home!”
Let's Get Connected!
Facebook | Twitter | YouTube | Linkedin
Sean's Mortgage WebSite | Sean's Mortgage Blog | Click for Sean's Weekly Update | Click for Sean's Monthly Update
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Make It A Great Day,
Sean K. La Rue
Sr. Vice President | Franklin Loan Center | Se Habla Español
Direct: 760-837-1488 | Mobile: 760-835-5663 | Fax: 800-784-9089
44-800 Village Court Palm Desert, CA 92260
“Your KEY to Moving Home!”
Let's Get Connected!
Facebook | Twitter | YouTube | Linkedin
Sean's Mortgage WebSite | Sean's Mortgage Blog | Click for Sean's Weekly Update | Click for Sean's Monthly Update