Living Beaverton - Your guide to everything Beaverton

April 15^th is fast approaching and in Beaverton, Oregon, as well as most places around the country in 2008, we finally saw the dip in home prices that the media was telling us about all through 2007!

Now I have lots of investors, home owners, and even people looking to buy, all wondering how this tax season is going to affect their pocket book. My investors are calling and telling me rents are down, taxes are up, and they are thinking of selling even at a loss. Home owners are telling me that they are tired of seeing their homes value drop every month and that they think they should sell and move into an apartment until the economy recovers. On the other hand, my first time home buyers are calling and telling me they want to see if home prices will continue to fall, as well as interest rates, so they can get the best deal possible.

But, they all have that same question… How will this affect my taxes? I can promise most everyone that has bought in the last two years that they aren’t going to have to worry about capital gains tax, but other than that, I’m not a CPA. I do have a list of CPAs that specialize in investment properties for my investor friends, but everyone else, please contact your CPA for the best advice on what to do with your home.

First time home buyers, this is your chance to get into a home at a great price, with low interest rates and even get a tax credit from the government! What are you waiting for? This is the time and there probably will never be a better time to buy than right now and that $8000 tax credit is just waiting for you and your CPA at the end of the year. You will thank yourself for investing in your future rather than throwing rent down the toilet.

But, in my humble opinion, if you are an investor, you haven’t lost money on your property until you have sold it, the loss is only on paper. So if you can hold on until the market rebounds you will be happy you did.