Investor Intel: Did You File Your Taxes?
Mid-April is often the time when most of the country emerges from winter hibernation. It’s just warm enough for a light jacket and the flowers have begun their annual displays of color. Despite this bright spot, mid-April also brings a gloomy few weeks for accountants and investors alike. That’s right! It’s tax season. This year, procrastinators can rejoice because the IRS has given taxpayers until April 18 to file due to a Washington, D.C. holiday known as Emancipation Day. If you live in Massachusetts or Maine, you’re extra lucky because your taxes aren’t due until April 19. These states will be celebrating Patriot’s Day and the Boston Marathon. If you haven’t filed yet, be sure to check out our list of rental property deductions you may be missing.
Despite the pain of filing, the IRS reported that the average refund amount has increased $5 in 2016 to an average of $3,053. This generosity has also spread to mortgage lenders. According to The Housing Finance Policy Center’s latest credit availability index, mortgage credit availability increased by 5.6 percent during the fourth quarter of 2015 after a year of declines.
This extra credit availability is good news, as the housing market continues to show major signs of improvement. In fact, according to RealtyTrac’s Foreclosure Market Report, the first quarter of 2016 saw just 289,116 foreclosure filings, the lowest quarterly filings since the fourth quarter of 2006. There’s still opportunity however for those real estate investors looking to score depressed properties. According to the report, foreclosure activity is in fact below the pre-recession average in 12 states. Some of those states include Colorado, Michigan, Texas, Georgia, California, Arizona and Ohio.
If you’re looking for some ideas to spend your tax return, I’ll leave you with this luxury listing: A seven bedroom estate on Mummy Mountain in Arizona. This expansive property with beautiful views of Paradise Valley is listed for a cool $10 million with Walt Danley Realty.
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