Check out the national real estate stats for February 2016. If you want more localized statistics for Herndon real estate, please visit www.LiveLoveHerndon.com.
If you are considering selling or buying a home Herndon, please contact me! I am a local Herndon real estate agent and resident. We love Herndon! 571-306-2508
Why Herndon, Virginia is the Place to Be
If you asked the residents of Herndon, Virginia if they like where they live right now, you’d get a resounding “absolutely.” Don’t take my word for it, the poll that was conducted surveying over 300 residents came back with an over 93% approval rating of their hometown. This includes everything from feeling of safety, how good the city’s parks, property, and infrastructure is, and how well they think the public officials are doing.
Those of you who are in the market for your own little slice of Americana, keep reading for more reasons why Herndon might be just what you’ve been looking for.
Best Places in America
In 2011, CNN called Herndon the 34th best place to live in America, second best place to live in the state of Virginia. They recognized the same things that residents have been saying: the economy is great, the city is safe, and the future looks very bright for them. The fact that Washington D.C. is a close neighbor to the town of Herndon means a lot of opportunity for those who are eyeing Herndon properties for sale. Needless to say, it’s a favorite place to visit among DC-natives who are looking for a change of pace and the good old small town charm.
Representatives of the town state that the town’s rich heritage and close-knit community contributes much to the success of its own success of the city’s officials. The upkeep of public properties, lands, festivities, and accessibility runs like a well-oiled machine that keeps neighborhoods looking great, businesses successful, and residents able to get around without thinking about how they will get there.
Most American cities were like this years ago, but many have fallen to the wayside from squandering of public funds, corrupt officials, and so-forth. The town of Herndon has withstood the test of time, for the things that matter.
Key points in Herndon’s Success
In Virginia they have incorporated towns, which Herndon is one of them, where they receive the full benefits of the counties they reside. This includes everything from emergency services, judicial service, public library, and health and social. This allows the city to move funding around much easier and prevent any city problems from festering.
Herndon real estate market is growing at 8 percent rate, with the median home rate at $479,600. The unemployment rate is also well under the national average, coming in at only 3.6% with the national average sitting at 6.3%. Employment has risen at a rate of 2.23% in Herndon.
2016 marks the 137th birthday for the town of Herndon, from its humble roots as a dairy and agriculture town, but that doesn’t mean they aren’t shy from changes, incorporating more growth and new additions to their heritage. If you are seeking a place that has a great mix of old and new, with a diverse populace that isn’t just an old-timer’s hometown, Herndon, Virginia ranks among the best in the country.
If you would like more information on what Herndon has to offer, please contact LeAnne Anies with LeAnne & Company | Keller Williams Capital Properties at 571-306-2508 or LeAnne@LeAnneandCo.com. For information on homes for sale in Herndon or selling your Herndon home, please visit LiveLoveHerndon.com.
If you are a teacher, military or veteran, police or fire, or in the medical field and are considering a move, buying or selling a home, let us help you bridge the gap of the cost of buying or selling with our Homes for Heroes program CLICK HERE for more information!
Owning a home can pay off at tax time. Take advantage of these home ownership-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.
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.
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.
What’s PMI? If you have a mortgage but didn’t put down a fairly good-sized down payment (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.
Vacation Home Tax Deductions
The rules on tax deductions for vacation homes are complicated. Do yourself a favor and keep good records about how and when you use your vacation home.
Homebuyer Tax Credit
This isn’t a deduction, but it’s important to keep track of if you claimed it in 2008.
There were federal first-time homebuyer tax credits in 2008, 2009, and 2010.
If you claimed the homebuyer tax credit for a purchase made after April 8, 2008, and before Jan. 1, 2009, you must repay 1/15th of the credit over 15 years, with no interest.
The IRS has a tool you can use to help figure out what you owe each year until it’s paid off. Or if the home stops being your main home, you may need to add the remaining unpaid credit amount to your income tax on your next tax return.
Generally, you don’t have to pay back the credit if you bought your home in 2009, 2010, or early 2011. The exception: You have to repay the full credit amount if you sold your house or stopped using it as primary residence within 36 months of the purchase date. Then you must repay it with your tax return for the year the home stopped being your principal residence.
The repayment rules are less rigorous for uniformed service members, Foreign Service workers, and intelligence community workers who got sent on extended duty at least 50 miles from their principal residence.
The Nonbusiness Energy Tax Credit lets you claim a credit for installing energy-efficient home systems. Tax credits are especially valuable because they let you offset what you owe the IRS dollar for dollar, in this case, for up to 10% of the amount you spent on certain upgrades.
The credit carries a lifetime cap of $500 (less for some products), so if you’ve used it in years past, you’ll have to subtract prior tax credits from that $500 limit. Lucky for you, there’s no cap on how much you’ll save on utility bills thanks to your energy-efficiency upgrades.
Among the upgrades that might qualify for the credit:File IRS Form 5695 with your return.
Read more: http://www.houselogic.com/home-advice/tax-deductions/home-tax-deductions/#ixzz3zE0dZM2t
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Thank you for checking out our blog on tax savings. If you or someone you know is considering a move, buying or selling a home in Herndon, please contact us! We would love to serve their real estate needs. Contact us at 571-306-2508
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