You would think from the hysteria over the debt ceiling that it is a once in a life time event. But it is actually the 73rd time the debt ceiling has needed to be increased since 1940. Bush Jr. alone asked for and got seven increases. This time our we reach our debt ceiling on on August 2nd. Unable to borrow more money the Treasury will have to decide which bills to pay. While Federal revenues will still be c. $180 billion a month, projected expenditures are c. $318 billion. Obviously tough choices will have to be made. The Tea Party says - no problem - we just keep paying interest on our bonds and like a family making the minimum payments on its credit cards and keeping up with the Obama mortgage interest deduction and car payments we will stay solvent.
Building up your home's equity also opens the door to mortgage refinancing and home equity loans. Homeowners then have more financial flexibility towards financing large expenses such as remodeling, college tuition or debt consolidation. Of course it's always possible that the value of your property will go down and not up, as many homeowners throughout the country have experienced over the past few years. Still, if you look at the value of real estate over the long term it has gone up over time. Like any investment buying a home involves risk - research the real estate market in your area to help you make a decision that feels right for you.
Tax Benefits- As you diligently pay your monthly mortgage, your tax advantage increases over the years. When you are paying for your own home you have the ability make a deduction on your federal income tax return for what you have paid towards the interest on the mortgage and property taxes. Some states also make allowances for additional Obama mortgage interest deduction. It pays to check with your accountant or tax advisor in regard to your allowable state deductions.
Financial Control- Paying for a home of your own prevents you from being subjected to surprise rent increases, especially if you have chosen a fixed rate mortgage. It also removes the stress of lease renewal. For many, becoming a homeowner is a solution for beating the high cost of retirement. It is entirely possible to pay off your home and live out your retirement years rent-free! Of course, as long as you own the home you will be responsible for the property taxes and insurance costs.
SOLUTIONS- All previous debt crises have been resolved with increased revenue and cuts in expenditure. But this time the right has insisted that the entire burden be shouldered by cutting (which falls most heavily on the poor) while leaving taxes alone (benefiting the rich). They have presented tax increases as being job killing, without presenting a shred of evidence; while ignoring that if Federal employees, the unemployed and retirees aren't buying stuff jobs will really be lost. The best they can do is to demand that any increase in revenue generated by the closing of loopholes such as agriculture or energy subsidies be offset by lowering the tax rate - what's the point?
Owing back taxes is not the end of the world, in fact, it isn't even uncommon. More than twenty million Americans owe money to the IRS. Many of them receive a Failure to File Notice in the mail years after the tax return in question was due. This seemingly scary missive is essentially a second chance. When the IRS asks you to file a missing tax return, it is best to oblige them. A talented tax representative can help you file back taxes before the IRS takes steps to recover an outstanding tax debt. With the right advisor, the process can be far less painful and more affordable than you might imagine.
Building up your home's equity also opens the door to mortgage refinancing and home equity loans. Homeowners then have more financial flexibility towards financing large expenses such as remodeling, college tuition or debt consolidation. Of course it's always possible that the value of your property will go down and not up, as many homeowners throughout the country have experienced over the past few years. Still, if you look at the value of real estate over the long term it has gone up over time. Like any investment buying a home involves risk - research the real estate market in your area to help you make a decision that feels right for you.
Tax Benefits- As you diligently pay your monthly mortgage, your tax advantage increases over the years. When you are paying for your own home you have the ability make a deduction on your federal income tax return for what you have paid towards the interest on the mortgage and property taxes. Some states also make allowances for additional Obama mortgage interest deduction. It pays to check with your accountant or tax advisor in regard to your allowable state deductions.
Financial Control- Paying for a home of your own prevents you from being subjected to surprise rent increases, especially if you have chosen a fixed rate mortgage. It also removes the stress of lease renewal. For many, becoming a homeowner is a solution for beating the high cost of retirement. It is entirely possible to pay off your home and live out your retirement years rent-free! Of course, as long as you own the home you will be responsible for the property taxes and insurance costs.
SOLUTIONS- All previous debt crises have been resolved with increased revenue and cuts in expenditure. But this time the right has insisted that the entire burden be shouldered by cutting (which falls most heavily on the poor) while leaving taxes alone (benefiting the rich). They have presented tax increases as being job killing, without presenting a shred of evidence; while ignoring that if Federal employees, the unemployed and retirees aren't buying stuff jobs will really be lost. The best they can do is to demand that any increase in revenue generated by the closing of loopholes such as agriculture or energy subsidies be offset by lowering the tax rate - what's the point?
Owing back taxes is not the end of the world, in fact, it isn't even uncommon. More than twenty million Americans owe money to the IRS. Many of them receive a Failure to File Notice in the mail years after the tax return in question was due. This seemingly scary missive is essentially a second chance. When the IRS asks you to file a missing tax return, it is best to oblige them. A talented tax representative can help you file back taxes before the IRS takes steps to recover an outstanding tax debt. With the right advisor, the process can be far less painful and more affordable than you might imagine.
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