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Archives for March 2013

Loaded with upgrades and priced to sell!

Job transfer to another state forces sale of this extraordinary home. Private great room style living with high ceilings, oversized windows and spacious rooms featuring a split floor plan design (master suite separated by living space from secondary bedrooms).

Located within walking distance of major shopping and restaurants, it’s also just footsteps away from scenic nature trails and a secluded park on the picturesque Wood River. The unique and wonderful community shines with pride of ownership and livability.

Features include extensive use of rough sawn hickory hardwoods, slate, tile and stone, craftsman style woodwork including heavy baseboard moldings, elaborate trim detail, crown moldings, bead board wainscoting, plus raised panel and glass French doors.

The kitchen is a gourmet chefs delight with spacious stone counters, quality Kitchen Aid gas range and 2 drawer dishwasher, oversized cabinet package includes glass faced display cabinet and unique plate rack, large walk-in pantry, etc.

Custom lighting throughout makes the home user friendly and features 5 ceiling fans with lights.

TAX TIP: Important Facts about Mortgage Debt Forgiveness

If your lender cancelled or forgave your mortgage debt, you generally have to pay tax on that amount. But there are exceptions to this rule for some homeowners who had mortgage debt forgiven in 2012.

Here are 10 key facts from the IRS about mortgage debt forgiveness:

1. Cancelled debt normally results in taxable income. However, you may be able to exclude the cancelled debt from your income if the debt was a mortgage on your main home.

2. To qualify, you must have used the debt to buy, build or substantially improve your principal residence. The residence must also secure the mortgage.

3. The maximum qualified debt that you can exclude under this exception is $2 million. The limit is $1 million for a married person who files a separate tax return.

4. You may be able to exclude from income the amount of mortgage debt reduced through mortgage restructuring. You may also be able to exclude mortgage debt cancelled in a foreclosure.

5. You may also qualify for the exclusion on a refinanced mortgage. This applies only if you used proceeds from the refinancing to buy, build or substantially improve your main home. The exclusion is limited to the amount of the old mortgage principal just before the refinancing.

6. Proceeds of refinanced mortgage debt used for other purposes do not qualify for the exclusion. For example, debt used to pay off credit card debt does not qualify.

7. If you qualify, report the excluded debt on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness. Submit the completed form with your federal income tax return.

8. Other types of cancelled debt do not qualify for this special exclusion. This includes debt cancelled on second homes, rental and business property, credit cards or car loans. In some cases, other tax relief provisions may apply, such as debts discharged in certain bankruptcy proceedings. Form 982 provides more details about these provisions.

9. If your lender reduced or cancelled at least $600 of your mortgage debt, they normally send you a statement in January of the next year. Form 1099-C, Cancellation of Debt, shows the amount of cancelled debt and the fair market value of any foreclosed property.

10. Check your Form 1099-C for the cancelled debt amount shown in Box 2, and the value of your home shown in Box 7. Notify the lender immediately of any incorrect information so they can correct the form.

SOURCE: IRS Tax Tips 2013-31

Big Discounts on Foreclosures Fading

Home buyers may not get as great of a deal on a foreclosure as they once did, according to Paul Diggle from Capital Economics in a new report.

Foreclosure starts are falling and the inventory of foreclosures has been decreasing, which has caused the discount on foreclosures to lessen.

The discount on foreclosed homes compared to other homes has fallen to a 12 percent average, according to Diggle. That was about the same percentage prior to the housing crash, he says. Last year the foreclosure discount averaged about 30 percent.

130311HistoryChartForeclosures

“Ultra-low mortgage interest rates and steady, if not spectacular, job creation could mean that the delinquency rate and foreclosure start rate are falling quickly,” Diggle writes.

Another Big Leap for Home Prices

Another home price index is showing home prices surging: CoreLogic’s home price index shows that home prices nationwide in January rose 9.7 percent year-over-year, posting their largest percentage increase since April 2006.

It was the 11th consecutive month of month-over-month increases in existing-home sales, according to CoreLogic’s index.

“Home prices continued to gather steam across a broad swath of the country in January, continuing the positive trend we saw during most of 2012,” says Anand Nallathambi, president and CEO of CoreLogic. “Many states across the western U.S. and along the East Coast saw average price gains of more than 6 percent, which is likely to boost home sale activity into the first half of 2013.”

The states seeing the biggest year-over-year rises in home prices in January were Arizona (20.1%), Nevada (17.4%), Idaho (14.9%), and California (14.1%), according to CoreLogic’s index. The only states not seeing year-over-year price increases were Delaware (-0.1%) and Illinois (-0.4%).

SOURCE: Realtor Daily News

NEW LISTING: Great Hailey location with room to roam

Located just blocks from Main Street, close to bike paths on a quiet street in East Hailey, this home with a rare full basement and ample extra rooms is awaiting its new owner.

4 bedrooms, 3 bathrooms, large family room plus additional rooms for your home office or a play room.

Large fenced back yard with country shed and large south facing deck to take full advantage of our beautiful sunny days.