MMG Weekly: Memorial Day Holiday

 

Edward F. W. Deanes Home Mortgage Consultant Wells Fargo Home Mortgage Phone: (757) 418-2064 Fax:: (866) 935-0661   edward.deanes@wellsfargo.com www.deanesgroup.com

Memorial Day Holiday               As your Trusted Advisor, I sincerely hope you have been enjoying your complimentary subscription to the MORTGAGE MARKET GUIDE WEEKLY. As the Memorial Day holiday is being observed, the next full issue will arrive on Monday, June 7. I wish you and your family a peaceful Memorial Day holiday, as we remember the sacrifices of all of our Armed Forces servicemen and women, past and present, who have worked so hard to protect our great country. In honor of Memorial Day, below you will find information on important tax breaks military families can take advantage of - please forward on to anyone you know who is in the military themselves, or who might have a family member or friend in the service. The MORTGAGE MARKET GUIDE WEEKLY is the industry's leading publication of this type, and I am pleased to provide this valuable resource to you. If you feel any of your clients, friends, family members, or associates would benefit from keeping up-to-date on market and economic trends in this easy to read format, please let me know, and I would be more than happy to add them free of charge. Best wishes to you, and please do not hesitate to contact me if I may be of any assistance to you at this time!             The Mortgage Market Guide View...               Tax Breaks for Military Families Military service is a tough job, but it comes with privileges at tax time. By Kimberly Lankford, Kiplinger.com Service members get a tax-free housing allowance, can qualify for tax-free pay while serving in a combat zone and have an extended tax-filing deadline while deployed -- giving them up to 180 days after returning from a combat zone to file their tax return. They can also stockpile extra money for retirement in tax-deferred accounts. Not only can military personnel stash up to $16,500 in the federal Thrift Savings Plan in 2010, but they can also contribute all of their tax-exempt combat-zone pay (as long as total TSP contributions for the year don't exceed $49,000). Tax-exempt pay that goes into the TSP comes out tax-free in retirement. At the same time, they can contribute up to $5,000 to an IRA ($6,000 if 50 or older), even if their entire yearly income is tax-exempt combat pay. Homeowner breaks. And now service members serving outside the U.S. for at least 90 days between December 31, 2008, and May 1, 2010, have an extra year to qualify for the $8,000 first-time home-buyer credit or the $6,500 credit for current homeowners. They have until April 30, 2011, to sign a contract and until June 30, 2011, to close on the new house. Normally, if homeowners don't live in the new house for at least three years, they have to repay the tax credit. But there's an exception for members of the military who have to relocate because of government orders. Military families also get a special break when they sell their homes. Most homeowners need to live in a house for at least two of the five years leading up to the sale in order to claim tax-free profits of up to $250,000 ($500,000 if married filing jointly). But because they move frequently, military families need to live in the house for only two of the preceding ten years in order to qualify if they are on qualified official extended duty, which means living at least 50 miles from home or in government quarters. For more details, see Kiplinger's Money Guide for Military Families at Military Families. Or see IRS Publication 3, Armed Forces Tax Guide. Reprinted with permission. All Contents © 2010 The Kiplinger Washington Editors. www.kiplinger.com                 [mmgwDisclosure]   The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is not without errors.   As your trusted advisor, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.   Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Mortgage Market Guide, LLC does not grant to you a license to any content, features or materials in this email.   You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.