Homeownership can provide some amazing tax benefits! The IRS enables you to deduct the interest on a first-time home purchase or home equity loan in the year the loan is made. Another way to save is to consolidate debt via a home equity loan because interest from a home equity loan is tax deductible, but interest paid on credit card debt is not. You can also deduct the interest on any purchase or improvement for your first or second home from your tax return. The IRS allows you to deduct the interest paid on mortgage debt up to $1 million, provided that your home is the collateral used to secure the loan.

Property taxes are offer yet another upside at tax time - you can deduct state and local property taxes from your federal return in the year that they were paid. If you bought a home in California in 2006 at the-then median price of $556,650, your property taxes would be approximately $5,570 for the year, and are fully deductible. Property taxes are increased on an annual basis, and as your property tax goes up, so does the amount you can deduct each year.

The return on yOur investment when you sell is also protected. You are able to keep up to $250,000 for an individual or up to $500,000 for a couple in profit tax free when you sell your home. No other investment allows you that kind of tax shelter.

And keep in mind, one more bonus that isn’t tax related is that you are no longer paying rent to someone else! Instead, you are paying yourself! A home can allow you to build yourself up financially, and in San Francisco, your investment is safe from the fluctuations that have occurred as housing bubbles “burst” all over the country.

To learn more about how your home can provide you with great tax advantages, consult a tax professional. If you don’t have one you trust, call or email me, and I can refer you to a tax professional that can help.

Tags: SF Mortgage & Financing Info, SF Real Estate Info for Buyers, SF Real Estate Info for Sellers by Luba
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Let’s face it, in San Francisco we live in Earthquake country. Now, if you ask me, I’ll take an earthquake over hurricanes or tornadoes or snow storms any day. Most earthquakes provide nothing more than a little jolt of adrenaline. But there is the very real possibility that an earthquake in San Francisco can have some very devastating effects. For that matter, we also face other real dangers including a tsunami, or even a terrorist attack. Any one of these can force the ENTIRE city’s emergency response professional into service, with many areas that will still be left completely unserved. As recent tragedies such as Katrina have shown us, we can’t truly depend on the government to help us, and much instead be prepared to rely solely on ourselves. So with all that being said, I am very proud to say that on Thursday July 12th, I began my NERT training. I’ve been to two sessions so far and now know how to shut off my gas from the street in gas of an emergency and how to use a fire extinguisher. There’s lots more to learn, but it’s a start! For those of you that have never heard of NERT, it stands for "Neighborhood Emergency Response Team Training." NERT is a 20 hour training program that the San Francisco Fire Department provides FREE to its citizens! The goals of NERT training in the event of an emergency situation are:

    -To prepare your family and home to survive
    -To protect yourself first so that you will be able to help others
    -To assist family and neighbors during time of disaster
    -To work as part of an emergency response team

Essentially, the goal of this program is to help the residents of San Francisco be self sufficient in a major disaster situation by developing multi-functional teams, cross-trained in basic emergency skills. Through this program, you can learn hands-on disaster skills that will help you as a member of an emergency response team and/or as a leader directing untrained volunteers during an emergency. There is no cost for NERT training, and the class sessions are approximately 3 hours. By the time the class sessions are over, you will be able to help not only yourself and your family in the event of an emergency, but you your friends, neighbors and fellow citizens as well. For more information the NERT training program, visit: http://www.sfgov.org/site/sfnert_index.asp P.S. You also get a cool yellow hard hat and a bright orange vest when you graduate. If being prepared in the event of an emergency isn’t enough incentive for you to sign up, the hat and vest should certainly be enough to prompt you to do it!

Tags: San Francisco Local Resources by Luba
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