Taxes are confusing, which is why many people in the U.S. choose to hire an expert to do their taxes for them. After all, there are so many numbers to know, forms to have ready, records of income and expenses, W-4s, 1099s, 380-Ts—we could’ve just made that last one up, and there’s no way of knowing!
Even though taxes might be complicated, they (sometimes) have a few perks. And if you own a home, those perks could mean a major bonus on your return. If you’re thinking of buying a home before next year’s taxes are due, here’s everything you need to know about how making a home purchase can affect your returns.
Deductions vs. Credit
Before we kick off the fun stuff, it’s important to know a little jargon—namely, the difference between a deduction and a credit.
When it comes to credits, think of them like tax-related coupons that reduce your dollar-for-dollar total. A few major tax credits include child tax credits, adoption credits, education or retirement credits, or credits for energy efficient homes and cars. Depending on the credits you qualify for, you could get anywhere from a few hundred to a few thousand dollars taken off of your tax liability.
Deductions are a little different: they reduce your taxable income, which can then adjust the total that you owe. Claiming certain deductions means that that part of your income is exempt from being taxed. Knowing which deductions to claim is key when filing, especially for homeowners.
Tax Benefits for Homeowners
Buying a home is expensive, but when it comes to tax time, here are the ways you can make some of that money back.
Mortgage Interest
One of the reasons that taxes for homeowners are so confusing is because they tend to change based on federal standards. Over the past few years, the federal Tax Cuts and Jobs Act pretty drastically altered the tax benefits for home ownership.
The most important change to know this year has to do with mortgage-related deductions. Previously, the tax deduction for home mortgages was limited to interest paid on $1 million debt for jointly filing married couples and single filers and $500,000 for married couples filing separately. Now, the numbers look more like $750,000 for the former and $500,000 for the latter. Additionally, interest paid during closing can also be counted towards this number.
Property & State Taxes
Did you know that the amount you pay in property taxes, state income taxes, and local sales tax is also deductible? If you pay property taxes through escrow, your lender will need to get the amount for you on your 1098 form, otherwise you should be able to find it in your personal records. The latest tax laws have instituted a cap at $10,000, but every little bit counts!
Private Mortgage Insurance (PMI)
Believe it or not, tax deductions on PMI are a hotly contested subject. Until recently, buyers were able to deduct the payments they made on Private Mortgage Insurance, but as of 2017, that ability expired. If you did buy your home before 2017, then your yearly income will determine how much you can deduct.
There’s no timeline on when deductions for PMI could return, but, unfortunately, if you’re a more recent home-buyer with these payments, those perks aren’t currently available.
Credits
We talked a little bit earlier about the difference between deductions and credits, so what sort of credits can you get as a homeowner? One of the biggest tax credits that homeowners can cash in on is having energy-efficient homes. In fact, if you installed geothermal heat or solar energy, you could be entitled to credit for up to 30% of the installation fee.
Other energy-efficient features, like storm doors and added insulation, can net you a few hundred dollars in credit, as well.
Tax-Free Profits
While many parts of the tax law have changed in the past few years, one aspect has stayed the same: tax-free profits. Selling your home not only means a big profit after the sale, but a large portion of the money you make won’t even get taxed—meaning you get to pocket more.
Married homeowners who sell their homes won’t have to pay capital gain taxes on up to $500,000 from the sale, while single filers can keep half of that as non-taxable income.
While there are some guidelines—like the home must have been a primary residence for at least two of the past five years—it’s a big plus when it comes to selling.
Want to Explore More of the Benefits of Home-Owning?
Believe it or not, there are a lot more benefits to owning a home than tax deductions. If you need help navigating the ins and outs of the home-buying and home-owning process, our team is here to help. With years of local experience and real estate know-how, we have the skills and resources necessary for home-buying and selling success.
Ready to learn more? Just give us a call. 540-388-2541
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my homeworth?” is the #1 question asked by home owners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata. To see available Lake of the Woods properties, please visit our site.
Why live in the Fredericksburg and Spotsylvania County area? It has history. It has class. It has culture. Many people new to the area will find that this part of Virginia offers much in the way of things to do. As I stated, the Fredericksburg region boasts of many historic sites that hold a place in our nation’s history, from its early founding, struggles for independence, and growing pains that led to the Civil War.
The Fredericksburg area is the site of where more than 100,000 Americans lost their lives in our nation’s struggle that culminated in the Civil War. The area, simply put, is hallowed ground. But there is also a hallowed beauty to it. Go visit the Fredericksburg Battlefield, where in 1862, General Robert E. Lee defeated the Union Army of The Potomac. Down the road from the Fredericksburg Battlefield is the Chancellorsville Battlefield, a site considered to be Lee’s most brilliant victory, where he defeated an army almost three times the size of his own army. Then nearby are the battlefields of the Wilderness and Spotsylvania, where Lee faced off against Union General Ulysses S. Grant, a man who would go on to become our nation’s 18th President. If you’re not a big history nerd, but are more of a fitness junkie, these battlefields offer many hiking trails and the roadways on these battlefields, which are run by the National Park Service, are great places for biking. The Park Service also puts on many living history events and Fit History walking tours during the spring and summer months.
Historic Downtown Fredericksburg is definitely worth going to see as it has many buildings that date to the Civil War and earlier. In the historic district there are many shops that offer a wide variety to visitors; restaurants, antique shops, specialty foods, clothing, jewelry, home furnishings and much more. Located in downtown Fredericksburg is Kenmore, the home of Fielding Lewis, an American Patriot who gave and sacrificed much during our country’s struggle for independence, not to mention, the brother-in-law of George Washington, having married Washington’s sister Betty. Since we are speaking of George Washington, across the river from Fredericksburg is the site of Ferry Farm, where young George spent his childhood. It is a living history site which recently has underwent archaeological work to locate the foundations of his boyhood home and has been rebuilt to what it probably looked like. Also located in downtown are the Mary Washington House, Rising Sun Tavern, Hugh Mercer Apothecary Shop and St. James’ House, all operated by the Washington Heritage Museums. Also near downtown, for the nature fanatics, is Alum Spring Park, a 34-acre park that hosts many natural features including sandstone cliffs and a swimming hole. If you are looking for a nice romantic getaway with your significant other, look no further. The downtown area also offers two nice B&B’s, the Kenmore Inn and the Richard Johnston Inn. Both Inn’s are historic homes, offer wonderful accommodations, excellent food, and show classic Virginia hospitality.
Aside from all the history and historic sites that Fredericksburg offers, there is also much in the way of class and culture. The downtown area also features art shops, the James Monroe Memorial Library, Fredericksburg Area Museum, and Belmont, the home of Gari Melcher, one America’s prominent portraitists and Impressionist painters. Fredericksburg also offers several craft beer and alehouses including Harry’s Alehouse on Route 3 and Sedona Taphouse and Capital Ale House in downtown Fredericksburg. The food at these locations are excellent. Not far from downtown, for those who have a taste for wine, there are a few local wineries which include Bacchus Winery, Hartwood Winery, and Eden Try Winery. If you have a flare for French cuisine, located downtown is La Petite Auberge, a French restaurant that has been serving the area since 1981. If you enjoy theater, located nearby is the Riverside Center for the Performing Arts, a local dinner theater which has been putting on main-stage musicals, broad way shows, and dramatic productions for over 20 years. The shows are always fun and entertaining and the food and service is always top notch. With all that Fredericksburg has to offer, it is no wonder that the area is continuously growing.
Spotsylvania neighbors Orange County, where Lake of the Woods is located. Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my homeworth?” is the #1 question asked by home owners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site.
If you are thinking of selling within the next 18 months, this is where you need to be on March 9th!
There will be many local vendors that are there to help you! We have a trusted lender attending, professional photographer, and a home inspector, just to name a few. We want to provide you access to all the resources you will need to sell your home for the most money in the least amount of time.
You will have the opportunity to ask questions not only to the listing agent, but also the vendors that will be presenting.
Selling your home doesn’t have to be a hassle and we want to make sure you have all the information you need so you know what to expect!
Please join: Licata Group on Saturday, March 9th from 11am – 1pm at the Lake of the Woods Clubhouse in Locust Grove.
RSVP by March 4th by email: jane@licatagroup.com or phone 540-388-2541.
Reserve your spot today!!!
Light refreshments will be served.
See you there!
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your professionals for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia, we are your proven Real Estate professionals. Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by home owners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site.
Cozy home to call your own! New carpet and laminate flooring! Skylights, large windows and french doors provide an abundance of natural light! Fabulous location, just a short walk to Sweetbriar Park and pool or stay home and relax on your own back deck. Enjoy all the lake has to offer; take a dip in the lake, play a round of golf, or take in the dinner at the clubhouse overlooking the lake!
Directions: Rt 3 into Lake of the Woods. R at gate. R on Liberty. L on Yorktown. R on Freedom. R onto Parliament.
Whether your looking for homes for sale in Lake of the Woods Va or Waterfront property in Virginia or homes for rent we are your professionals for Stafford, Fredericksburg, Spotsylvania, Locust Grove and Central Virginia, we are your proven Real Estate professionals. Thinking of selling? In any market condition, that’s the #1 question asked by home sellers. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. The Question is how much is it worth? Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site!
Saturday, March 10th from 10 AM – 11 AM, Malawi’s Pizza at the Spotyslvania Towne Center will be hosting Breakfast with the Easter Bunny!
$7 + tax, per person, will include one 8 inch Pizzetta with scrambled eggs & cheese (up to 3 additional toppings can be added) and a small fountain beverage will be included with free refills. Full menu will be available at regular price.
Space is LIMITED and first come, first served!! Absolutely NO registration required.
Why eat at Malawi’s? For starters for every meal purchased at Malawi’s restaurant, a nutrient-dense meal is donated to a child in need. They also celebrate multiple charities and rally around different causes to build relationships with others.
They offer signature dough, sauces, toppings and dressings! Come try some delicious new food if you haven’t already!
Whether your looking for homes for sale in Lake of the Woods Va or Waterfront property in Virginia or homes for rent we are your professionals for Stafford, Fredericksburg, Spotsylvania, Locust Grove and Central Virginia, we are your proven Real Estate professionals. Thinking of selling? In any market condition, that’s the #1 question asked by home sellers. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. The Question is how much is it worth? Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site!
Murder Mysteries Will Travel – strikes again! They will be at The Generals’ Quarters in Locust Grove on Saturday, March 3rd at 6 P.M.
The scene: A reception is held for Senator Dan Drewnell and his wife. Before his introduction, he is shot! Now let the fun begin – enjoy watching the comedy and suspense unravel right before your eyes as you try to uncover who the murderer is! Will you figure it out before the end of the show?
There are limited seating and the tickets are $65 per person. Your ticket includes: the show, dinner, tip and tax! Reserve your spot today!!
Whether your looking for homes for sale in Lake of the Woods Va or Waterfront property in Virginia or homes for rent we are your professionals for Stafford, Fredericksburg, Spotsylvania, Locust Grove and Central Virginia, we are your proven Real Estate professionals. Thinking of selling? In any market condition, that’s the #1 question asked by home sellers. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. The Question is how much is it worth? Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site!
What a fun and exciting way to hunt for Easter eggs this year!
On Saturday, March 31st from 11 am – 2 pm bring your children to a FREE Easter Egg Drop event in Orange, VA.
Location:
Orange Baptist Church Rt. 15 N Property (across rt.15 from Round Hill Inn/CVS)
U.S. 15 N
Orange, VA 22960
There will be 2 different “Drops” for 2 different age ranges. The first drop being at 11:30 AM is designated for children aged 3 – 7 years old and a 12 pm for the 8 – 12 years old.
There is even a special roped off egg hunt area for infants through 2 years old.
WHAT is an Egg drop, anyway?? A helicopter with a bucket of plastic, colorful eggs will fly overhead and unload all the eggs! After the helicopter is out of view the children can begin the hunt for their eggs. The eggs collected are then traded in for a bag full of candy! How sweet!
This event is filled with much more than just the Egg Drop. There will be hayrides, food trucks, a photo booth and of course, Easter-themed games.
There will even be a presentation of the Easter Story!
Don’t forget it’s FREE so bring the whole family to share the joy and experience with!
Whether your looking for homes for sale in Lake of the Woods Va or Waterfront property in Virginia or homes for rent we are your professionals for Stafford, Fredericksburg, Spotsylvania, Locust Grove and Central Virginia, we are your proven Real Estate professionals. Thinking of selling? In any market condition, that’s the #1 question asked by home sellers. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. The Question is how much is it worth? Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site!
OC’s Tourism Manager and Economic Development Manager to Address Civic Club
By Pat Licata, Civic Club President
Please plan to join the Civic Club on Wednesday, February 21st, in the Clubhouse Great Hall at 7pm. Lori Landes-Carter, Tourism Manager, and Phil Greer, Economic Development Director, will be providing an overview of Orange County as it relates to their respective positions. Ms. Landes-Carter, a native of Orange County, accepted the Tourism Manager position last month; she had been the Executive Director for the OC Chamber of Commerce. Lori is the contact person for OC’s tourism program, preparing and delivering presentations on tourism program development, implementation, and management. She also coordinates and manages departmental programs and activities with key tourism principals, including tourism-related businesses and local and regional visitor attractions. Lori, her husband, and her seven-year-old son are Lake of the Woods residents. As Economic Development Director of Orange County, Mr. Geer’s role is to perform professional and administrative work which results in increased capital investment and job creation while maintaining and/or increasing the quality of life within the county. As you might imagine, the scope of work involved is wide-reaching. A few of Phil’s responsibilities include assisting prospective businesses, existing companies, and nurturing local startups and overseeing OC’s promotional materials and online presence.
Phil, his wife, and their English bulldog and two cats currently live in Greene County.
Whether your looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia, we are your professionals for Stafford, Fredericksburg, Spotsylvania, Locust Grove and Central Virginia. We are your proven Real Estate professionals. Thinking of selling? In any market condition, that’s the #1 question asked by home sellers. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. The Question is how much is it worth? Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site!
By Pat Licata, External Affairs Committee
What a difference a year makes! 2017 was an amazing year for real estate sales in Lake of the Woods, with sales showing an increase of 21+% over 2016. New construction has continually been on the rise as well.
Of the 294 total sales in 2017, only 17, or 5.8%, were either short sales or foreclosures.
At the height of the distressed real estate market in 2010, a whopping 43% of all sales were either short sales or foreclosures. We’ve come a long way!
So let’s look at our steady growth over the past five years: In 2013, the median sold price was $190000, and 211 homes sold, of which 28.2% were distressed sales.
In 2014, the median sold price jumped to $219,450, with 193 homes selling, of which only 11.9% were distressed.
In 2015, the total sales climbed to 247, with 15% being distressed. The total sales represented almost a 30% gain over 2014, and the median sales price dropped to 210,000.
In 2016, the market was pretty flat compared to 2015 in regards to total sales, which held at 243 with a decrease in distressed sales to 11.1%. However, 2016 saw the median price jump to 225000, a healthy 7.1% increase.
2017 told a totally different tale: 294 total sales, a whopping 21.1% increase over 2016 with only 5.8% being distressed. The median sales price climbed to 239,000.
Average days on the market (DOM), which is the number of days it takes from the time a property is listed until it goes under contract, has steadily declined from 111 in 2013 to 95 days in 2017. It’s also telling to note that a significant number of lots have sold in the past five years. From January 1, 2013-December 31,2017, 155 lots exchanged ownership.
New construction has been climbing, as well. 2013 saw 17 new construction starts, while 2014 had 18, In 2015, there were 41; in 2016, there were 28; and there were 30 in 2017.
Another good year in 2018 is anticipated! Our low taxes in OC will potentially be even more appealing to prospective residents. The new tax law allowing tax deductions only up to $10,000 for real estate taxes may drive consumers to lower tax base localities such as what we enjoy here.
Whether your looking for homes for sale in Lake of the Woods Va or Waterfront property in Virginia or homes for rent we are your professionals for Stafford, Fredericksburg, Spotsylvania, Locust Grove and Central Virginia, we are your proven Real Estate professionals. Thinking of selling? In any market condition, that’s the #1 question asked by home sellers. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. The Question is how much is it worth? Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.
To see available Lake of the Woods properties, please visit our site!
Pat Licata from Licata Group visits JK Carpets in Locust Grove VA. Please watch the information videos as they go over the different flooring types available, installation, carpeting options, pricing, etc!!
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia, we are your professionals for Stafford, Fredericksburg, Spotsylvania, Locust Grove and Central Virginia. We are your proven Real Estate professionals. Thinking of selling? In any market condition, that’s the #1 question asked by home sellers. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. The Question is how much is it worth? Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata. To see available Lake of the Woods properties, please visit our site!
