On March 28, 2009
Earth Hour will demonstrate that by working together, each one of us can make a positive impact on this global issue. Governments, businesses, communities and individuals across the globe will participate in Earth Hour and pledge to make changes that will curb their greenhouse gas emissions. Turn off your lights from 8:30-9:30 p.m. local time on Saturday, March 28, 2009 During that hour replace your old light bulbs with energy-efficient compact fluorescent bulbs Commit to reducing your energy consumption in the year ahead
Friday, March 27, 2009
Tuesday, March 24, 2009
New $8000 Tax Credit for Home Buyers
Great news for first-time home buyers in 2009! The stimulus plan that President Obama signed into law contains a new $8,000 tax credit for qualified first-time home buyers. And, unlike the $7,500 tax credit from last year, this credit does NOT have to be repaid to the government, as long as you stay in the home for at least 36 months after the purchase date.
Remember, a tax credit is much more valuable than a tax deduction. A tax credit reduces dollar for dollar the amount of tax you owe. A deduction merely reduces the amount of your income that is taxable. This means the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset.
Who?
First-time buyers or anyone who hasn't owned a home in the 3 years prior to a purchase of a primary residence may qualify for a tax credit of up to 10% of the purchase price or $8,000, whichever is less. To qualify for the full credit, the buyer's modified adjusted gross income must be less than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. Partial credit is proportionally reduced for incomes under $95,000 (single) or $170,000 (married). For married taxpayers, the homeownership history of both the home buyer and his/her spouse are taken into account. This means if you or your spouse has owned a principal residence in the last 3 years, neither you nor your spouse qualifies for the credit.
What?
According to the IRS, a primary residence is the one you live in most of the time. It can be a house, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence. If you constructed your main home, you are treated as having purchased it on the date you first occupied it.
When?
The $8,000 tax credit is available for qualifying home purchases made from Jan. 1, 2009, until Dec. 1, 2009. This is not a typo. To receive the credit you must purchase a qualified home before December 1st, 2009 – not the end of the year.
How?
Unfortunately, you can NOT use the credit as a down payment. To receive the credit, you must purchase a qualified home first and then claim it on either your 2008 or 2009 taxes. If you make a qualified purchase after April 15, or after having already filed your 2008 taxes, you and your tax professional can submit an amendment to your return. To claim the credit, use form 5405.
Why?
The current combination of lower home prices and lower interest rates makes for an amazing opportunity to buy real estate. Add to that this $8,000 gift from the government, and renting a home just doesn't make much sense.
If you or someone you know is ready to stop paying the landlord's mortgage and start building equity in your own home, give us a call. We'll run the numbers and see what makes sense for your individual financial needs.
Sincerely,
Lisa Warren
Silver Oak Mortgage
(817) 410-2518
lwarren@somlp.com
Remember, a tax credit is much more valuable than a tax deduction. A tax credit reduces dollar for dollar the amount of tax you owe. A deduction merely reduces the amount of your income that is taxable. This means the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset.
Who?
First-time buyers or anyone who hasn't owned a home in the 3 years prior to a purchase of a primary residence may qualify for a tax credit of up to 10% of the purchase price or $8,000, whichever is less. To qualify for the full credit, the buyer's modified adjusted gross income must be less than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. Partial credit is proportionally reduced for incomes under $95,000 (single) or $170,000 (married). For married taxpayers, the homeownership history of both the home buyer and his/her spouse are taken into account. This means if you or your spouse has owned a principal residence in the last 3 years, neither you nor your spouse qualifies for the credit.
What?
According to the IRS, a primary residence is the one you live in most of the time. It can be a house, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence. If you constructed your main home, you are treated as having purchased it on the date you first occupied it.
When?
The $8,000 tax credit is available for qualifying home purchases made from Jan. 1, 2009, until Dec. 1, 2009. This is not a typo. To receive the credit you must purchase a qualified home before December 1st, 2009 – not the end of the year.
How?
Unfortunately, you can NOT use the credit as a down payment. To receive the credit, you must purchase a qualified home first and then claim it on either your 2008 or 2009 taxes. If you make a qualified purchase after April 15, or after having already filed your 2008 taxes, you and your tax professional can submit an amendment to your return. To claim the credit, use form 5405.
Why?
The current combination of lower home prices and lower interest rates makes for an amazing opportunity to buy real estate. Add to that this $8,000 gift from the government, and renting a home just doesn't make much sense.
If you or someone you know is ready to stop paying the landlord's mortgage and start building equity in your own home, give us a call. We'll run the numbers and see what makes sense for your individual financial needs.
Sincerely,
Lisa Warren
Silver Oak Mortgage
(817) 410-2518
lwarren@somlp.com
Saturday, March 7, 2009
Energy Vampires: Fact or Fiction
It's well-known that most electronic devices in our homes are sucking up energy even while they are turned off. But for all the information out there, many questions remain. I got hundreds of reader questions after writing the post What's wasting energy in your home right now. Below are answers to the five most common inquiries:
Which electronic devices waste the most energy when they are turned off but still plugged in?
Set-top cable boxes and digital video recorders are some of the biggest energy hogs. Unfortunately, there's little consumers can do since television shows can't be taped if boxes are unplugged. It also typically takes a long time to reboot boxes.
However, some of the other major consumers of standby power are more easily dealt with: computers, multifunction printers, flat-screen TVs, DVDs, VCRs, CD players, power tools, and hand-held vacuums. The Lawrence Berkeley National Laboratory (LBNL) measured standby power for a long list of products.
While it's true each individual product draws relatively little standby power, the LBNL says that when added together, standby power can amount to 10% of residential energy use.
Why do electronic devices use energy when they are switched off?
Electronics consume standby power for one of two reasons, says Chris Kielich of the Department of Energy. They either have an adapter that will continue to draw electricity, or they have devices (such as clocks and touchpads) that draw power. Anything with a remote control will also draw standby power, she says, since the device needs to be able to detect the remote when it's pushed.
Does everything suck energy when it's plugged in and turned off?
No. If your coffeemaker or toaster doesn't have a clock, then it's probably not using standby power, says Kielich. Chances are your hair dryer and lamps (although they may have a power adapter for the dimmer) are not drawing standby power either, she says. Devices with a switch that physically breaks the circuit don't consume standby power.
Will switching things on and off shorten their life?
Probably not, says Kielich. You'd have to turn devices on and off thousands of times to shorten their lives. The real downside, she says, to unplugging electronics is that clocks and remotes will not work, and you do have to reset everything.
Can you ruin batteries by unplugging battery chargers and causing batteries to completely discharge?
It could be a possibility, says Kielich. Her advice: Don't let batteries get completely drained. But you don't need to have things like hand-held power vacuums and drills plugged into the charger when it's 100% charged, or even 50% charged.
Power Strip FAQs
Plugging electronics into a power strip and turning it off when you're not using it is a widely prescribed solution for curbing vampire power. Here are answers to common questions:
Power strips draw energy when they are turned on, but not when they are switched off.
Any decent power strip should have surge protection, according to Kielich. Flicking your power strip on and off will not create a power surge capable of damaging electronic devices. In fact, it will protect devices from other surges.
Several readers were worried about the possibility of fires caused by plugging too many things in at once. If you plug in the allowed number of devices, then power strips are safe, says Kielich. Just don't plug your power strip into another power strip, or you run the risk of creating an overload
Which electronic devices waste the most energy when they are turned off but still plugged in?
Set-top cable boxes and digital video recorders are some of the biggest energy hogs. Unfortunately, there's little consumers can do since television shows can't be taped if boxes are unplugged. It also typically takes a long time to reboot boxes.
However, some of the other major consumers of standby power are more easily dealt with: computers, multifunction printers, flat-screen TVs, DVDs, VCRs, CD players, power tools, and hand-held vacuums. The Lawrence Berkeley National Laboratory (LBNL) measured standby power for a long list of products.
While it's true each individual product draws relatively little standby power, the LBNL says that when added together, standby power can amount to 10% of residential energy use.
Why do electronic devices use energy when they are switched off?
Electronics consume standby power for one of two reasons, says Chris Kielich of the Department of Energy. They either have an adapter that will continue to draw electricity, or they have devices (such as clocks and touchpads) that draw power. Anything with a remote control will also draw standby power, she says, since the device needs to be able to detect the remote when it's pushed.
Does everything suck energy when it's plugged in and turned off?
No. If your coffeemaker or toaster doesn't have a clock, then it's probably not using standby power, says Kielich. Chances are your hair dryer and lamps (although they may have a power adapter for the dimmer) are not drawing standby power either, she says. Devices with a switch that physically breaks the circuit don't consume standby power.
Will switching things on and off shorten their life?
Probably not, says Kielich. You'd have to turn devices on and off thousands of times to shorten their lives. The real downside, she says, to unplugging electronics is that clocks and remotes will not work, and you do have to reset everything.
Can you ruin batteries by unplugging battery chargers and causing batteries to completely discharge?
It could be a possibility, says Kielich. Her advice: Don't let batteries get completely drained. But you don't need to have things like hand-held power vacuums and drills plugged into the charger when it's 100% charged, or even 50% charged.
Power Strip FAQs
Plugging electronics into a power strip and turning it off when you're not using it is a widely prescribed solution for curbing vampire power. Here are answers to common questions:
Power strips draw energy when they are turned on, but not when they are switched off.
Any decent power strip should have surge protection, according to Kielich. Flicking your power strip on and off will not create a power surge capable of damaging electronic devices. In fact, it will protect devices from other surges.
Several readers were worried about the possibility of fires caused by plugging too many things in at once. If you plug in the allowed number of devices, then power strips are safe, says Kielich. Just don't plug your power strip into another power strip, or you run the risk of creating an overload
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