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enron_by_the_sea
ParticipantDon’t forget that if you can pay off Mello Roos with a HELOC then HELOC interest is tax deductible while Mello Roos is not!
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Disclaimers1. If you are hit with (Federal) AMT then it does not help
2. Most people can not get HELOC unless they put more than 20% down (due to 80% CLTV rule). For those cases it is better to put only 20% down and pay off Mello Roos out of pocket. You still get extra tax deduction due to extra Mortgage interest paid .. (which might go away in “tax reform of 2013”!) This route does not get affected by AMT!Based on what I am reading, if you live in a high MR McMansion, you are sure to live there forever, if you fall in high tax bracket and if you have extra 50K lying around; this looks like a very attractive investment!
ParticipantUpdate on PHR facilities.
[Quote]
Board member Manjeet Ranu, who represents PHR, said, “This will allow us to get things that make a community a real community and help surrounding communities by not burdening their facilities.”Frank January, from the city of San Diego, said the transportation and phasing plan includes all of the population-based facilities funded by Facilities Benefit Assessments (FBA) paid by homeowners. These include the neighborhood and community parks, the library, trail systems and a community pool in Black Mountain Ranch.
The phasing plan includes threshold requirements.
“Within the thresholds, development cannot proceed until those facilities are provided,” January said.
That means no more new houses until there are appropriate amenities for the residents that currently live there. January also said the amended financing plan aims to minimize delays as much as possible.
Gonzalez Canyon Neighborhood Park will be the first to be designed and delivered as PHR reaches its first threshold of 1,900 units. January said they have a signed agreement from Pardee Homes as of last week to move forward with reimbursements to design and build that park.
[/Quote]February 29, 2012 at 10:52 PM in reply to: OT: What is the lowest HELOC rates you are seeing now? #739000ParticipantAnd can you get it with CLTV exceeding 80%?
Participant[quote=ocrenter]
Assuming you take out a HELOC at 4.5%, to keep the monthly payment the same, it would take 13 years to payoff. Essentially at $480/month. If you just pay $100 more per month, you can pay it off in 10 years.
[/quote]Hmm.. Aren’t HELOCs these days limited to 80% CLTV? If so, a new/recent buyer can not really use it to buy a house and pay-off Mello-Roos without putting down >20% at purchase. If that is the case then won’t he be better off just putting 20% down and using the rest to pay off Mello-Roos? (instead of putting 20%+50K down and then taking out a HELOC to pay-off Mello-Roos)..
On the same topic, there are slightly older areas in the city (e.g. Scripps Ranch) where houses built in the mid-90s have ~2K/year Mello-Roos which will expire in another ~5years. Once the (majority of ) Mello-Roos for the whole area expires in 2017, might they see a bump in property values? I am guessing that there is a class of buyers for whom any Mello-Roos is a turn-off (there are some on this board. LOL!!!) Suddenly in 2017, this area becomes desirable for them.
February 29, 2012 at 9:55 AM in reply to: Mira Mesa – 7510 Bannister Ln – 10%+ loss in less than one year #738909Participant[quote=SD Realtor]Good thing there are some Mira Mesa experts here.[/quote]
With the going away of Eric Elegado, they are inviting applications for the open position of “Mira Mesa Expert” ! LOL!!!
ParticipantHmm … I remember that during the bubble days, this guy’s face was plastered all over Mira Mesa!
February 21, 2012 at 12:39 PM in reply to: State tax deductibility of all Mello-Roos charges threatened beginning tax year 2012 #738404ParticipantThe funny thing is, as a owner-occupier you can’t deduct property taxes (because of AMT), Mello-Roos (see above). There seems to be universal consensus between economists on the right and left that Mortgage interest deduction is a giveaway, so I guess that is going away in 2013 too!
But if I just started renting this place out, I can deduct all of it (property taxes, HOA, Mello-Roos, Mortgage interest..) on schedule E.
So flu, you and I should sell each-other our house and then rent it out on a long lease. That way we can side step all these tax issues
🙂 🙂 🙂
February 21, 2012 at 12:21 PM in reply to: State tax deductibility of all Mello-Roos charges threatened beginning tax year 2012 #738393Participant[quote=flu]You know, for a lot of people. It doesnt matter really. Because a lot of folks get hit with AMT anyway, where deductions from taxes aren’t used to compute the AMT.[/quote]
You are right for Federal AMT but I believe you can still deduct property tax on CA return even if you fall under federal AMT…
There is such a thing as CA-AMT too. Luckily for me, I am yet not there 🙂 L)
February 19, 2012 at 11:21 PM in reply to: Financing and tax question: HELOC on primary for investment property, can it offset income? #738340ParticipantFlu:
With these income levels (AGI >150K if MFJ) one needs to be very careful in tax planning because they can fall under the dreaded AMT.
Under AMT rules, HELOC interest can only be deducted if it is used to buy, build or improve your (primary) house. AFAIK, if you used HELOC to buy investment property then you can’t deduct that interest if under AMT!
(If you have a lot of equity in the house and can manage to cash out without resorting to a HELOC then this does not apply!)
February 16, 2012 at 11:21 PM in reply to: OT: The Weekly Piggington User Forum Report, Issue #1. #738245ParticipantGreat job flu!
ParticipantLet’s see RP thinking.
Not counting votes in certain counties in Maine = Fraud
Santorum delegate voting secretly for Paul = Not Fraud!
ParticipantI understand that when election is stolen away from you, it feels bad.
– Al Gore & people whose votes were not counted in 2000.
February 10, 2012 at 5:29 PM in reply to: OT – Who will run for President on the Republican side? #737715Participant[quote=briansd1]AN, feel free to support Ron Paul all you want.
But as far as I’m concerned, Ron Paul is not even a viable option. There are plenty of guys on the left who want to legalize marijuana and end wars.
As we discussed before, Ron Paul has kooky economic and other ideas that make him undesirable.[/quote]
So far Ron Paul has massively underperformed against expectations set for him by the internet! That tells me that his supporters are so busy annoying people on internet that they are forgetting to actually vote for him.
Participant[quote=pri_dk]
If it’s any consolation, Romney’s taxes may not have cost him much in percentage of income, but his tax rate will cost him the election.[/quote]
I do not dislike Romney, I may even vote for him if Dems are projected to take house & the Senate. It’s the tax system that I dislike.
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