This extraordinary residence designed by local Architect Hank Bruce and built in 2006 by Consolidated Construction reflects California comfort with resort inspired grounds. Lavish finishes throughout include elaborate barrel vault tongue and grove ceilings, hand finished concrete, limestone and radiant heated hardwood floors for an ambiance that is sumptuously elegant. Soaring doors and windows fill the home with light and views of the beautiful Belvedere Lagoon. Countless amenities span through the two-levels – of five bedrooms, six full baths, temperature controlled wine cellar, dining room with built in buffet and a loft entertainment room. A tremendous chefs’ kitchen features two dishwashers, Wolf range, warming drawer and microwave, Sub-Zero refrigerator/freezer plus a Miele espresso center. Outside the beautifully landscaped grounds include an infinity hot tub, outdoor kitchen, lawn, boat dock and spacious decking – the ultimate for the California indoor/outdoor style of living.
Monthly Archives: February 2015
Don’t Miss These Home Tax Deductions
By: Dona DeZube
Published: December 22, 2014
From mortgage interest to property tax deductions, here are the tax tips you need to get a jump on your returns.
Owning a home can pay off at tax time.
Take advantage of these homeownership-related tax deductions and strategies to lower your tax bill:
Mortgage Interest Deduction
One of the neatest deductions itemizing homeowners can take advantage of is the mortgage interest deduction, which you claim on Schedule A. To get the mortgage interest deduction, your mortgage must be secured by your home — and your home can be a house, trailer, or boat, as long as you can sleep in it, cook in it, and it has a toilet.
Interest you pay on a mortgage of up to $1 million — or $500,000 if you’re married filing separately — is deductible when you use the loan to buy, build, or improve your home.
If you take on another mortgage (including a second mortgage, home equity loan, or home equity line of credit) to improve your home or to buy or build a second home, that counts towards the $1 million limit.
If you use loans secured by your home for other things — like sending your kid to college — you can still deduct the interest on loans up $100,000 ($50,000 for married filing separately) because your home secures the loan.
PMI and FHA Mortgage Insurance Premiums
You can deduct the cost of private mortgage insurance (PMI) as mortgage interest on Schedule A if you itemize your return. The change only applies to loans taken out in 2007 or later.
By the way, the 2014 tax season is the last for which you can claim this deduction unless Congress renews it for 2015, which may happen, but is uncertain.
What’s PMI? If you have a mortgage but didn’t put down a fairly good-sized downpayment (usually 20%), the lender requires the mortgage be insured. The premium on that insurance can be deducted, so long as your income is less than $100,000 (or $50,000 for married filing separately).
If your adjusted gross income is more than $100,000, your deduction is reduced by 10% for each $1,000 ($500 in the case of a married individual filing a separate return) that your adjusted gross income exceeds $100,000 ($50,000 in the case of a married individual filing a separate return). So, if you make $110,000 or more, you can’t claim the deduction (10% x 10 = 100%).
Besides private mortgage insurance, there’s government insurance from FHA, VA, and the Rural Housing Service. Some of those premiums are paid at closing, and deducting them is complicated. A tax adviser or tax software program can help you calculate this deduction. Also, the rules vary between the agencies.
Prepaid Interest Deduction
Prepaid interest (or points) you paid when you took out your mortgage is generally 100% deductible in the year you paid it along with other mortgage interest.
If you refinance your mortgage and use that money for home improvements, any points you pay are also deductible in the same year.
But if you refinance to get a better rate or shorten the length of your mortgage, or to use the money for something other than home improvements, such as college tuition, you’ll need to deduct the points over the life of your mortgage. Say you refi into a 10-year mortgage and pay $3,000 in points. You can deduct $300 per year for 10 years.
So what happens if you refi again down the road?
Example: Three years after your first refi, you refinance again. Using the $3,000 in points scenario above, you’ll have deducted $900 ($300 x 3 years) so far. That leaves $2,400, which you can deduct in full the year you complete your second refi. If you paid points for the new loan, the process starts again; you can deduct the points over the life of the loan.
Home mortgage interest and points are reported on Schedule A of IRS Form 1040.
Your lender will send you a Form 1098 that lists the points you paid. If not, you should be able to find the amount listed on the HUD-1 settlement sheet you got when you closed the purchase of your home or your refinance closing.
Property Tax Deduction
You can deduct on Schedule A the real estate property taxes you pay. If you have a mortgage with an escrow account, the amount of real estate property taxes you paid shows up on your annual escrow statement.
If you bought a house this year, check your HUD-1 settlement statement to see if you paid any property taxes when you closed the purchase of your house. Those taxes are deductible on Schedule A, too.
The minute you drive through the gates you will be surrounded by 4.6 acres of mature landscape, open meadows, colorful flowers, fruit trees and pathways which lead you to a beautiful custom built single story home. A welcoming slate entry opens to a lovely living room with bay window, formal dining room, and large family room with a Vermont Casting wood stove, and a spacious laundry room. Enjoy your chef’s kitchen and separate eating area with French doors that open to an entertainment size deck for indoor outdoor living. There’s a spacious Master Bedroom with organic wool carpeting, spa-type marble and glass block bath, two additional bedrooms and two full baths. Gleaming red oak flooring, nine foot ceilings, skylights, solar tubes, Marvin Integrity Wood Clad windows and ceiling fans complete the interior of this fabulous home. Outside the grounds also provide a one bedroom cottage with separate gated entrance, RV parking and an additional office/laundry room, artist studio and three car garages. The countless amenities span through this fabulous property that blends modern sophistication with comfortable family living.
This rural property is private yet 10 minutes to downtown Sebastopol for shopping and amenities, 15 minutes to highway 101. Close to Sonoma County Airport, Healdsburg’s gourmet restaurants and wine bars and Bodega Bay.