February 2008
Tax Alert
Cathy Cavanagh Alerts to new Tax Laws
In This Issue
Increasing Jumbo Loan Rates
Property Tax Deferrals
Taxpayer Rebates
Tax Alert Archive
   
 
On Going Education
Newsletter
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The information contained in this Tax Alert is current as of today.  If you are reading this at a later date, the information may not be correct for current tax law.  Always check with your tax professional to confirm the current tax laws before you make any investments or decisions pertaining to your real estate investments.
Class Schedule

For the most up-to-date class schedule check out the web site.
 
 
CHECK OUT THE CLASS SCHEDULE
New Rates for Jumbo Loans!
Re-fi boom expected
 
A major change to financing guidelines is part of the new economic stimulus package passed by Congress last week.
 
Fannie Mae and Freddie Mac will be allowed to buy loans worth as much as $729,750 in expensive markets, an increase over the current $417,000 loan limit, this could help struggling homeowners to refinance large mortgages at a lower interest rate
 
Although only small percentage of home transactions will be affected we can expect to see effects firsthand in our Northwest market which has continued to experience growth as a result of our diversified economy.
 
For more info check February's Newsletter
Low Income Tax Deferrals
Program Requirements
 
 
In order to qualify for this real estate tax break, you must have owned your home for more than 5 years and lived in it as of January 1 of the application year.  The home must be your primary residence when you apply.
 
Your annual household disposable income for the previous year must be less than $57,000.
 
The taxes deferred cannot exceed 40 percent of your equity.
 
For more information on how to apply for this program contact the Washington State Department of Revenue.
Monthly Newsletter! 
If you find these tips helpfull then you don't want to miss my Monthly Newsletter.  All of the information is recent and relates directly to the Puget Sound and Pacific Northwest.  If you are a Realtor, investor, or small business owner you CANNOT afford to miss these important updates.
Economic Stimulus Plan

The economic stimulus plan was passed by the Senate on the 7th and the president has said he will sign the measure on the 13th.  Rebates are expected to begin arriving in May or June and are based on 2007 returns which are due on April 15th.

The $170 billion package aims to speed rebates to taxpayers and prevent or shorten a recession.  The plan will provide rebates to most taxpayers and low-income people including veterans and the elderly.

Most individual taxpayers will receive $600 while married couple filing joint returns will receive $1,200 as long as they fall below the income caps of $75,000 for individuals and $150,000 for couples.  There is also a $300 per child tax credit.  Low income rebates will be $300 each.  Speaker of the House, Nancy Pelosi, has said as many 116 million families will get a rebate check.

All together those rebates will put close to $120 billion in the hands of taxpayers with the hopes that they will spend it and boost the economy.   Economist generally agree that such a package will give a boost to the burgeoning economy but that the full impact will be less than the total value of the stimulus package.