Check This Off Your List
Since you’re at home anyway and may even have kids at home who need something to do, now is a great time to get a current home inventory done. One of the easiest ways to accomplish this seemingly, daunting task is to put together a collection of pictures of every room in your home. The more valuable, the more important it is to take a close-up picture. It will be necessary to open the drawers and closets and, in some cases, to pull things out in order to show everything in the picture. That’s why having someone to help you makes it faster and easier. Not to get distracted from the job at hand, you may discover things that you had forgotten you had which is why you should do an inventory rather than trying to reconstruct it after the loss. In some cases, it may be years after you’ve filed a claim when you remember you forgot some things. Having photos or videos of the different rooms in your house combined with a list of the items can serve as the proof you need for your claim. There are other benefits to doing a home inventory also. You’ll know the “right” amount of insurance to have on your personal belongings by assigning replacement costs to them. It will simplify filing a claim if you ever need to. To organize your photos and even provide a detailed list of higher value items, you can download a Home Inventory in an interactive PDF that you can complete. You can put it together on your computer and store it online to make it available if the computer is stolen or damaged. If you would like any professional residential Real Estate advice, contact us at Paramount Real Estate Services. 1008 12th St. SE Salem, OR 97302 503-851-1645 Also, to mobilize us right away to help you move, visit us here:
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Home Inventory List
Everyone knows someone it has happened to or has heard a tragic story. It could have been a fire, a flood, a burglary or some other disaster but to file a claim on their insurance, they need the receipts or a list for what is being claimed.Is Mortgage Interest Deductible?
Some Mortgage Interest May Not be Deductible
Banks are concerned about making loans that will be repaid not about making loans that are tax deductible for homeowners. It is good business for the bank but how is the homeowner supposed to know?
Most homeowners and potential homeowners are aware there are tax benefits associated with ownership. For instance, mortgage interest and property taxes have been deductible expenses from federal income tax since it was enacted in 1913.
The current law provides that homeowners can deduct the interest on Acquisition Debt which is the amount of debt incurred to buy, build or improve a first or second home up to $750,000. The amount of acquisition debt decreases as payments are made and it cannot be increased unless the additional funds borrowed are used for capital improvements.
It is not uncommon for a homeowner to refinance their home for any number of reasons. It could be to get a lower interest rate that would lower the payments or remove mortgage insurance. However, when additional funds are borrowed for reasons beyond “buy, build or improve”, the excess is considered personal debt and the interest is not deductible according to IRS.
Maybe this is not important if the owner is taking the standard deduction because it is higher than the total of the property taxes, qualified mortgage interest and charitable deductions made by the taxpayer. Currently, it is estimated that 90% of homeowners are electing to use the increased standard deduction implemented with the 2017 Tax Cuts and Jobs Act.
A confusing issue that occurs at the end of the year is when the lender reports to the borrower the amount of interest that was paid. While that amount is most probably accurate, the bank doesn’t know if it is qualified mortgage interest for the borrower.
It is the responsibility of the taxpayer to keep track of outstanding acquisition debt and whether part of the balance is considered personal debt.
Another area where it could become important is if the property was lost due to foreclosure, deed in lieu of foreclosure or a short sale. The provisions of the Mortgage Forgiveness Act have been extended through 12/31/20 which exempts the forgiven debt from being considered income and therefore taxable. However, it only applies to acquisition debt. Any part of a mortgage refinance that is considered personal debt could be taxable in that situation.
As an example, let’s say that homeowners originally borrowed $300,000 to purchase a home that they owned for 15 years. During that time, the home appreciated significantly, and they refinanced it twice. Once, they made some improvements and took out cash to pay off personal loans and the second time, it was only a cash out.
| Original acquisition debt | $300,000 |
| Remaining acquisition debt including improvements | 225,000 |
| Unpaid balance on current mortgage | $550,000 |
| Personal debt | 325,000 |
In the example above, the personal debt of $325,000 would be considered income on foreclosure and recognizable as income on that year’s income tax return.
If you have never refinanced your home or have refinanced it but never taken any money out of it except to make capital improvements, your unpaid balance in most likely acquisition debt. However, it you have refinanced your home and pulled money out of it for purposes other than capital improvements, those funds may be considered personal debt.
This article is for information purposes. If you are unclear about the current acquisition debt on your home or need advice for your individual situation, contact your tax professional. Additional information can be found in IRS Publication 936, Home Mortgage Interest Deduction.
If you would like any professional residential Real Estate advice, contact us at Paramount Real Estate Services. 1008 12th St. SE Salem, OR 97302 503-851-1645
Also, to mobilize us right away to help you move, visit us here:
Covid-19 Procedures
At Paramount Real Estate Services, we are taking drastic measures to protect our clients and the public during this time while still working hard to service our community. Here are our policies that we have put in place to ensure minimizing the risk of infection or transmitting any virus.
Preparations:
1) Wash hands with warm water and soap for at least 20 seconds thoroughly throughout each day.
2) Don’t touch your face.
3) Cough & Sneeze into your elbow.
4) Always stay at least 6 feet away from other people.
5) If you feel sick or show any symptoms, do not meet with people or show property. Stay home.
6) Wear masks when meeting with people.
7) Don’t come into the office unless you need to.
8) Follow other CDC and OHA guidelines.
Meetings & Consultations:
1) Video, phone and social media are acceptable and only meet when absolutely necessary.
2) Ensure privacy and confidentiality.
Showings:
1) Ask if Face Time, Zoom, Skype, other apps, or video conferencing & pictures will suffice for your clients to give them enough information to view properties without being present. With permission from the seller and the listing agent, visit the property by taking precautionary steps to protect the premises. Preview properties beforehand, if possible, to make sure it is a good candidate for your buyers.
2) Only show property to people who really are qualified and ready to purchase a property.
3) Always make sure the listing agent/company and sellers give permission to show their property & follow their showing procedures.
4) Wash hands before entering someone’s home. Bring hand sanitizer for you and your clients.
5) Clients are not to touch anything without first sanitizing hands and wearing nitrile or latex protective gloves.
6) Qualify buyers for your listings and make sure your sellers feel comfortable with buyers showing their homes. Follow showing procedures.
7) Provide hand sanitizer and post guidelines on your listings for agents and their buyers.
8) Move quickly and don’t linger inside any property.
Brian & Nina (Paramount Real Estate Services) First Video Promotion-2009
We are so excited to be coming on to our 10 year anniversary here at Paramount Real Estate Services! We dug through the archives to find this gem back in 2009!
Paramount Real Estate App
The new Paramount App is, in our opinion, the best Real Estate App for our Willamette Valley for a few reasons.
- Our App does not focus on collecting your personal information to sell to Real Estate professionals!
- Our App tells you which properties are “Active” and which ones are “Active but Under Contract”! There is a difference. The other Apps do not distinguish between the two leaving buyers confused as to which properties are actually available for them to pursue.
- Our App only focuses on our local market! We give you the information that you need right here in the Willamette Valley.
- Our App is simple to use giving you logical search criteria included in an advanced search, map search and basic search options.
- Our App comes with an Augmented Reality scanner so you can view Exclusive Videos and Virtual Tours only from Paramount Real Estate Services.
Download our Paramount App from your App Store or from these direct links:
Real Estate Numbers Rise for 2013
Existing Home Sales for the nation rose substantially for 2013 giving us the highest numbers that we’ve seen for 7 years. This is encouraging to say the least, however, many factors still plague our country and the health of our economic recovery. The United States needs to see more than the 70,000-200,000 private jobs created each month for us to have a strong economic recovery. It is understood that the national unemployment rate dipped below 7%, but let’s be honest here. Many people have left the workforce causing this number to look more attractive than it really is. Many more people need to get back to work and be able to make attractive wages before our economy is not struggling on life support.
Regardless of how our overall economy is, people still need to find homes to live in. We have witnessed the largest economic correction that the US has had in decades and people still find ways to buy their own home. This is the resilience and creativity of the American people, which is what should be celebrated. People are doing what they can to scratch and crawl their way to lending approval because they know the importance of owning their own home. Taking advantage of the amazingly low interest rates is a strong motivator as well. Allowing interest rates to rise before locking in that rate will cost a home buyer thousands of dollars over the term of their loan or the time they own the home. As interest rates continue to rise through 2014, the buyers who are able to purchase now will be the ones creating more of their own wealth over time. http://data.bls.gov/timeseries/LNS14000000
Paramount Serves
Paramount Real Estate Services gives back to the Salem Community. Each month, the Brokers strive to help someone in need with cleaning, repairing, organizing, yard work, or anything that we can get our hands on that does not require specialty work. We are not contractors, but we do have a desire to help. People can be nominated by email at Service@ParamountOregon.com. Their situation and what they need is to be described. #ParamountServes
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503-385-1518
25758 Taylor Park Rd Lyons Oregon
SPORTSMANS LOG HOME PARADISE! Parklike setting across the road from the little North Fork River. Seasonal creek and pond, sm. barn, fenced pasture, sm. orchard, and shed. This beautiful log home is very well kept with A/C, open kitchen to dining area, LR w/ wood stove and lg windows throughout letting in plenty of light. Lower level can be huge master suite w/ beautifully updated bath, living area, library, walk in closet, exercise area and private office. Solid cedar logs refinished and sealed.
Beautiful Log Home near Salem Oregon!
SPORTSMANS PARADISE! On the way to the Cascade Mountains, Hoodoo Ski Resort, Elkhorn Golf Course, Detroit Lake, and Central Oregon. This Beautiful Log Home sits on a parklike setting of over 4 acres across the road from the little North Fork River of the Santiam River! Seasonal creek and pond, small barn, fenced pasture, small orchard, and shed. This home is very well kept with A/C, open kitchen to dining area, Living Room with wood stove and large windows throughout letting in plenty of light. Lower level can be huge master suite with beautifully updated bathroom, living area, library, walk in closet, exercise area and private office. Solid cedar logs refinished and sealed. Enjoy fishing, hiking, hunting, skiing and all other outdoor activities near your own Log Home! Visit our Virtual Tour here: https://sites.google.com/site/25758taylorparkrd/
1008 12th St. SE Salem
Principal Brokers Licensed in the State of Oregon