A NY Times article dated June 30, 2010, details a major problem with the PACE (Property Assessed Clean Energy) program recently launched from D.C.
This program helps homeowners install solar panels and other energy improvements on their homes, and pay for it over time on their property tax bills.
The issue here is the priority of the liens. Fannie Mae and Freddie Mac, the government entities that guarantee more than half of the residential mortgages in the United States, have been denying loans. They are worried that taxpayers will end up as losers if a homeowner defaults on a mortgage on a home that uses such creative financing.
Typically, property taxes must be paid first from any proceeds on a foreclosed home. Fannie Mae and Freddie Mac have stated that energy-efficiency liens could not take priority over a mortgage.
Under the financing programs, a local government borrows money through bonds or other means, and then uses it to make loans to homeowners to cover the upfront costs of solar installations or other energy improvements.
Each owner repays the loan over 20 years through a special property tax assessment, which stays with the home even if it is sold.
The Homebuyer Assistance and Improvement Act of 2010 was recently enacted. The act gives taxpayers who entered into a binding purchase contract on or before April 30, 2010, until September 30, 2010 to close on the transaction.
Prior to the act, the transaction was supposed to close on or before June 30, 2010. The act also extended the date for certain members of the military and other qualified federal employees to close on or before September 30, 2011.
The military date of closing was originally June 30, 2011 for contracts entered into on or before April 30, 2011.
An annuity is a contract, typically with an insurance company. There are several “flavors” of annuties available. There are fixed, variable, indexed, non-indexed, and on and on.
Which annuity is best? Well, it all depends on your particular financial situation and you financial goals. Give us a call if you ever want a second opinion on your current investments.
It depends. If your payroll liability is real low, you only need to pay and report once per year. But typically, you need to pay in your payroll tax at least each quarter. The higher your payroll tax liability, the more frequent your tax deposits have to be. Clear as mud? Whew…….that one was easy.
We help many clients with payroll compliance and bookkeeping. This helps them avoid those nasty penalty and interest letters that folks often get in the mail.
Gifting is an IRS rule that allows you to give part of your assets to your heirs while you are still living. There are annual limits and per-recipient limits. These sometimes change year-to-year. I some cases, these gifts need to be reported to the IRS.
Gifting is one of many tax strategies that can help reduce your tax burden. This is probably the easiest and most widely known strategies. Other, more advanced strategies are more beneficial for folks with larger estates. Give us a call and we can discuss some possible ways to reduce your estate tax.
Taxes, taxes, and even more taxes. I have had several clients call and ask about this issue. You need to sit with a tax advisor to discuss your situation. The tax implications will depend on a variety of factors, such as your income level, the amount of the retirement funds, your age, length of employment, and several other issues.
There are a few exceptions that will qualify you to forego the 10% early distribution penalty on part or all of your withdrawal. It is well worth your time to ask a professional BEFORE you do this. This is one of those transactions that can often not be undone.
Already this year, I have helped several clients with responding to letters from our friends at the IRS. They are obviously getting more aggressive these days. They have been delaying the payout of refunds.
One letter we received stated that they needed more information, but did not say what information they needed.
The reasons for the IRS letters are various and wide-ranging. One client had to file some back tax returns they were legally not required to file, in order for this year’s refund to be sent out to them. A few other clients received IRS letters for things the IRS got wrong. These letters can often be confusing and frustrating. Give us a call if you need help dealing with these issues.
