Information on 2013 Tax Credits!

It’s that time of year again when we will be solicited by many organizations for our 2013 Arizona Charitable Tax Credit dollars. There are three funds that most of us are familiar with: private school, public schools, and working poor. Each donation has a limit per individual or per couple so make sure you check with your accountant to determine the amount you are eligible to contribute. Guidelines we have seen to date are $2062 for couples for private schools, $400 per couple for public school activities, and $400 for the working poor. It is half of these amounts for singles.
  
There is another deduction that is lesser known, the Arizona Military Family Relief fund. It is paid to the Department of Veterans’ Services and can be accessed on line at http://dvs.az.gov/benefits/relief_fund. The catch is that total contributions are capped at $1m so as soon as it reaches that level, additional contributions are returned and cannot be used towards the tax credit in Arizona. The maximum contribution for this fund is $400 per couple.

An additional note for the public school contribution is that it is most beneficial for the school if you ask that your donation be applied to the General Fund rather than a specific activity. Too many schools have unused dollars sitting in one specific category and they are not allowed to use any money left over for a lesser funded area. For instance, if Fine Arts has used as much as it needs but still has $5000 remaining and another activity could use that money, the principal is not allowed to co-mingle the funds. When the money is in the General Fund, the administration of the school can determine where and how it can be used. It allows for more flexibility within the school!

So help out the children, the working poor, and the military and help yourself at the same time. Remember it is a dollar per dollar write-off on your Arizona state taxes!! A true win/win!

Avoid Common Mistakes When Financing a Home Purchase!

Have you ever lost a deal because the financing fell through? 

There are a few things you need to know if you are buying a home and financing the purchase. By following these pointers you can avoid losing the home you want to buy!

o    DO NOT CHANGE YOUR MARITAL STATUS - How you hold title is affected by your marital status. Be sure to make both your lender and the title company aware of any changes in your marital status so that documents can be prepared correctly.

o    DO NOT CHANGE JOBS - A job change may result in your loan being denied, particularly if you are taking a lower-paying position or moving into a different field. Don’t think you’re safe because you’ve received approval earlier in the process, as the lender may call your employer to re-verify your employment just prior to funding the loan.

o    DO NOT SWITCH BANKS OR MOVE YOUR MONEY TO ANOTHER INSTITUTION - After the lender has verified your funds at one or more institutions, the money should remain there until needed for the purchase.

o    DO NOT PAY OFF EXISTING ACCOUNTS UNLESS YOUR LENDER REQUESTS IT - If your Loan Officer advises you to pay off certain bills in order to qualify for the loan, follow that advice. Otherwise, leave your accounts as they are until your escrow closes.

o    DO NOT MAKE ANY LARGE PURCHASES - A major purchase that requires a withdrawal from your verified funds (such as a car) or increases your debt can result in your not qualifying for the loan. A lender may check your credit or re-verify funds at the last minute, so avoid purchases that could impact your loan approval.

If this brings up any questions for you, please do not hesitate to call us or your lender.