Osceola ReVIEW - June 2008 - (Page 9)

Here are just a few good reasons why Now is the Time to Buy a Home: • Pride of Ownership - Pride of ownership is the number one reason why people yearn to own their home. It means you can paint the walls any color you desire, turn up the volume on your CD player, attach permanent fixtures and decorate your home according to your own taste. Home ownership gives you and your family a sense of stability and security. It’s making an investment in your future. • Appreciation - Although real estate moves in cycles, sometimes up, sometimes down, over the years, real estate has consistently appreciated. The Office of Federal Housing Enterprise Oversight tracks the movements of single family home values across the country. Its House Price Index breaks down the changes by region and metropolitan area. Many people view their home investment as a hedge against inflation. • Homestead Exemption – Amendment 1 was recently passed in the State of Florida that doubles the Homestead Exemption. An additional exemption of $25,000 applied to the value between $50,000 and $75,000. • Portability – Effective immediately, homeowners may transfer up to $500,000 of their Save Our Homes cap. If their new homestead is more valuable than the old homestead, a taxpayer can transfer up to $500,000 of the entire old CAP dollar amount. If a taxpayer downsizes, the percentage of protection will transfer to the new homestead. Starting from 2007, property owners who sell their homestead, have up to 2 years to transfer the CAP to a new homestead. • Mortgage Interest Deductions - Home ownership is a superb tax shelter and our tax rates favor homeowners. As long as your mortgage balance is smaller than the price of your home, mortgage interest is fully deductible on your tax return. Interest is the largest component of your mortgage payment. • Property Tax Deductions - IRS Publication 530 contains tax information for first-time home buyers. Real estate property taxes paid for a first home and a vacation home are fully deductible for income tax purposes. • Capital Gain Exclusion - As long as you have lived in your home for two of the past five years, you can exclude up to $250,000 for an individual or $500,000 for a married couple of profit from capital gains. You do not have to buy a replacement home or move up. There is no age restriction, and the “over-55” rule does not apply. You can exclude the above thresholds from taxes every 24 months, which means you could sell every two years and pocket your profit--subject to limitation--free from taxation. Continued on Page 10. June 2008 Osceola ReVIEW 9

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Osceola ReVIEW - June 2008 President's Perspective CEO Perspective Education Corner Knowledge Services News Legal Ease Sponsors June 2008 Monthly Planner

Osceola ReVIEW - June 2008

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