New Tax Break for 2007

Families with income of less than $100,000 can claim deduction
Households with annual income of $100,000 or less can get a tax break on their mortgage insurance when purchasing a home in 2007 using less than the traditional 20 percent down payment.

That’s because a new tax deduction effective Jan. 1 will allow them to write off the full cost of their private or government mortgage insurance on their federal tax return.
With rising interest rates and slowing home-price appreciation, insured loans are often the best deal for borrowers, according to the Mortgage Insurance Companies of America, a trade association representing the private mortgage insurance industry.

Mortgage insurance helps loan originators and investors make funds available to home buyers for low-down-payment mortgages by protecting lenders from a portion of the financial risk of default.
“Making the cost of mortgage insurance tax deductible helps those who need it most: low- and moderate-income Americans, primarily first-time home buyers, who are financially responsible but simply don’t have the means to amass a 20 percent down payment,” said MICA president Steve Smith in a statement.

On average, the new deduction is expected to save those eligible to claim it an average of $300 to $350 a year, said MICA spokesman Jeff Lubar.
The deduction applies to private and government mortgage insurance programs, such as VA and FHA-backed loans, Lubar said. Legislation creating the deduction was supported by consumer, business, taxpayer and civil rights groups, including the National Urban League, the National Taxpayers Union, the American Homeowners Grassroots Alliance, and the Cuban American National Council.

Manny Mirabal, president of the National Puerto Rican Coalition, said about one in three families benefiting from the deduction will be minorities.
Mirabel said that with the rate of Hispanic home ownership lagging 20 percent below the national average of 68 percent, “this legislation (will) enable more hardworking Hispanic families and consumers to become homeowners.”

Tax Deductions for 2007

Private mortgage insurance is usually required by lenders for borrowers who contribute less than 20% of a home’s purchase price as a down payment. The insurance, protecting the lender, is quite expensive, but in some cases it’s the only way a home buyer can finance the purchase.
Beginning January 2007, many home buyers who must purchase private mortgage insurance to obtain needed financing will finally be getting a break.
Premium payments for such insurance will be tax deductible for borrowers who earn less than $100,000 a year. This tax break will probably save borrowers from $300- $350. So don’t spend it all in one place.

Insurance Reform Legislation That Passed

Below are some highlights from the Property Insurance Reform Legislation that passed on Monday:
Expanding Consumer Choice & Savings

Deductible Options – eliminates caps on deductibles so a homowner can choose a deductive other than the standard 2%, 5% or 10% in current law. However, for deductibles over 10% on a home valued under $500,000, approval must be obtained by a mortgage lender or lien holder.

Windstorm Coverage - allows homeowners to exclude windstorm coverage from their policies with approval from mortgage holder.

Contents Coverage - allows policy holder to exclude contents coverage.
Insurance Company Accountability & Regulatory Reform

Cherry Picking – requires insurers that offer homeowners policies in other states and offer auto insurance in Florida to sell homeowners insurance in Florida.

Return Profits – prohibits excess profits by property insurers and requires return of excess profits to policyholders.

Oath of Truth - requires an oath of truth, with penalty for perjury, for rate filings. Violation is an unfair trade practice, subjecting the insurance company to disciplinary actions against its license.
Age of Home – prohibits property insurers from denying coverage based solely on the age of home.

For a more detailed summary, Click Here.

Commercial & Condo Association Insurance

Risk Pooling - allows risk pooling of “like” entities, such as hospitals, municipalities, condominium associations, and not-for-profit corporations.

Self-Insure - relaxes restrictions on multi- family dwellings, condominium associations, and other such entities that self-insure.

Commerical Policies - moves all commercial non-residential policies out of the PCJUA and place them in Citizens. Citizens will write commercial coverage statewide and will cover the first $1 million on commercial property. Citizens would be allowed to require commercial properties to meet specified mitigation construction features in order to be eligible for coverage.
Quick Links…
Review article on Condo Assoc. Insurance
Review article on Commercial Insurance

Brush up on Property Taxes

2007 Property Tax Exemption Filing Period
For Miami Dade County-If you miss this deadline you’ll be sorrrrrrrrryyyyy.

Tuesday, January 2 - Thursday, March 1

The Miami-Dade County Property Appraisal is currently receiving applications for the various property tax exemptions provided for by Florida state law.The deadline for property owners to submit applications is Thursday, March 1st 2007.To facilitate this process, beginning on Tuesday, January 2nd 2007, the Property Appraisal Department will accept applications at special satellite offices across the county.Click here for a list of these satellite offices, operating hours and the documents needed to file for these exemptions.
Service Connected Disabled Veteran Discount

You may be eligible for the new tax abatement program if:

If you are a service connected disabled veteran
At least 65 years of age as of January 1st
Permanent Florida Resident at the time you went into service
Honorably Discharged

If you meet the above listed criteria the percentage of your service connected disability will be applied to your Ad Valorem taxes. For example, if you have a 30% service connected disability then 30% of the Ad Valorem taxes will be abated. This does not apply to non-ad Valorem assessments, such as garbage and lighting districts. The deadline to apply for this tax abatement is March 1st.

Payment of Real Estate Taxes – Property Tax Payment Deferral Program
Did you know that Under Florida Statutes 197.252 and 197.253, you may defer a portion or all of your property tax payments and any non-ad valorem assessments. Click here for information on the revised tax deferral program offered by the Tax Collector.
In case you wanted to be slick-
You May Lose Your 3% Cap If You Add Someone Other Than Your Spouse to your Deed and he/she Applies for Homestead Exemption
Adding names to the ownership of your property normally does not affect your $25,000 homestead exemption if the original owner/applicant still meets the residency requirements and title is held as tenants by the entirety or joint tenants with rights of survivorship.
However, if the owner added to the property applies for homestead exemption, Florida law now requires the removal of the 3% assessment limitation on your property resulting in an increase in taxes.
For additional information, please call 305-375-4125.



PROPERTY APPRAISER’S OUTREACH PROGRAM
The Property Appraiser’s office is here to help you. If you would like to have someone meet with your condo or civic organization to discuss tax exemption programs or the assessment process, please contact us at (305) 375-4712 or email us by Clicking here.

“BUYER SHOULD NOT RELY ON THE SELLER’S CURRENT PROPERTY TAXES AS THE AMOUNT OF PROPERTY TAXES THAT THE BUYER MAY BE OBLIGATED TO PAY IN THE YEAR SUBSEQUENT TO PURCHASE.”

A new law under Section 689.261, Florida Statutes, now requires a disclosure, before signing a contract, that a sale triggers a reassessment of a property and subsequent increase in property taxes. To help you better estimate future property taxes, the Property Appraisal Department encourages you to use our Tax Estimator.

THE MY SAFE FLORIDA HOME PROGRAM

Under a new State program, qualified Florida homeowners may receive up to $5,000 in matching grant funds to strengthen their home against hurricanes. To qualify for the program you must meet the following criteria:
Home ownership

Have a valid homestead exemption on the home
And, the insured value of your home cannot exceed $500,000
The Miami-Dade County Property Appraiser can help you obtain evidence of homestead exemption for you property in two ways.

Option 1:
Using the property search function on you can locate your property. The information on our website will reflect useful information to include the current owner of record, folio number, property address and your homestead exemption.


Option 2:
On August 22, 2006, a Notice of Proposed Property Taxes was mailed to all homeowners. This Notice reflects the current owner of record, folio number, property address and your homestead exemption.

For more information about this program visit the My Safe Florida Home program.
FOR OTHER IMPORTANT DATE AND DEADLINES CLICK HERE