On January 1st, 2007, a new law went into effect making Private Mortgage Insurance (PMI) tax-deductible for new borrowers whose personal adjusted gross income is $100,000 or less. Designed to protect the lender from default and foreclosure, PMI was viewed as a double-edged sword by consumers for many years. On the one hand, PMI was a requirement for loans exceeding 80% of a home's value or sales price. On the other hand, many consumers could not afford or even qualify to purchase a home without PMI. The new law makes PMI more beneficial, creating an opportunity to finance a more expensive home or to potentially obtain lower payments for the same-priced home, while reducing income taxes.

 

And, while those who financed their homes prior to 2007 cannot take the deduction, more options are available under the new law when it comes buying or upgrading to a new home with a minimal down payment, or refinancing and pulling cash out for other investments. Either way, talk to your Mortgage Professional to learn more about this incredible gift from Congress. 

 

 

 

While having your car break down in the middle of summer is annoying, a breakdown in the heart of winter can be devastating. No matter where you live, preparing your car for winter can save time, trouble, and maybe even your life. Here are a few tips to winter-proof your automobile.

 

 

 

 

  

 

Clutter is a drain on productivity. One report estimates that, as a group, Americans waste an average of nine million hours each year simply looking for misplaced items. For Personal Productivity Expert, David Allen, disorganization is the result of an internal phenomenon called "incompletes" or "open loops," referring to the big and small commitments we can't help but feel responsible to "change, finish, handle, or do something about." Allen suggests that organization is a matter of time and commitment management, which can be achieved through the implementation of three basic steps:

 

 

 

 

In his best-selling book, Getting Things Done, David Allen outlines his amazing system for gaining control over the clutter. If you'd like to receive a Gift of Knowledge Interview with David Allen, give me call. Otherwise, visit www.Davidco.com to learn more about how to get organized in 2007.

 

 

 

Retirement Accounts: The deadline to contribute to IRA accounts for your 2006 tax return is April 16, 2007. For traditional IRAs, qualified contributions are typically tax deductible, which can help lower your gross income and save on your overall tax bill. For Roth IRAs, contributions are not deductible but can lead to significant tax savings down the road, when distributions begin.

Itemize: According to the IRS, the largest itemized deduction claimed by most Americans is their mortgage interest. Talk to your Tax Professional to learn more about this and other potential deductions which may help to lower your tax bill. Examples include medical and dental care, charitable contributions, business expenses, tax preparation services, and casualty losses as a result of property theft or destruction. Certain tax expenses may also be deductible, including personal property, real estate, local, and state income or sales taxes.