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Patty Clark
Patty Clark

Morningside Homes, LLC
720-231-5200
Contact Me

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Qualified Charitable Contribution

If you're at an age where you need to be taking Required Minimum Distributions (age 70.5) from your IRA, a qualified charitable contribution and some planning may allow you to lower your overall tax liability. Let's say that a couple's 2019 itemized deductions include $8,000 in property taxes, $4,400 in interest and $20,000 in charitable contributions.  That would total $32,400 which exceeds the 2019 $25,300 standard deduction for married couples, 65 years of age or older, filing jointly. Their required minimum distribution from their IRA is $40,000 which will be taxed at ordinary income.  If this couple is in the 24% tax bracket, the tax liability would be $9,600. Alternatively, if they made the $20,000 in charitable contributions from their IRA as a Qualified Charitable Contribution, it would not be taxable in the withdrawal.  The balance of the RMD of $20,000 would be taxable at 24% which would have a tax liability of $4,800. Their $32,400 worth of itemized deductions would be reduced by the $20,000 because it was paid from the IRA which makes their itemized deductions $12,400.  The $25,300 standard deduction would benefit them more by an amount of $12,900 increased deductions.  At 24%, this would reduce their liability by $3,096. In the first instance, they would owe $9,600 in taxes due to the $40,000 RMD from their IRA.  In the second example, because of the increased amount by taking the standard deduction, the net tax liability would be $1,704 ($9,600 - $4,800 - $3,096 = $1,704). This example shows how shifting contributions to a Qualified Charitable Contribution will get the same amount to the charity but lower the Required Minimum Distribution that must be recognized as ordinary income.  The shifting also gives the taxpayers the advantage of a higher amount of the standard deduction than the itemized deduction. As always, before taking action, you should get advice from your tax professional on how this strategy may impact you.  There is information available on www.IRS.com for IRS Required Minimum Distribution FAQs and Qualified Charitable Distributions. Buy or Sell with Patty Clark              Denver/Aurora Co. and surrounding areas Helping Families Move with Care If you would like to be sent properties on a daily or weekly  basis just call or email me and let me know your wants and  needs. A match will be made with a home you love and with  monthly payments you can afford. I specialize in first time                       home buyers and sellers who are ready to make a move. Morningside Homes, LLCpatty@morningsidehomes.com www.morningsidehomes.comCell: 720-231-5200                       CRS,GRI,WCR,SFR,CNE, MRE

Auto Pay your Mortgage Payment

In the time that it takes to write one check, you can set it up with your bank and never have to do it again.  You won't have to write checks, envelopes or buy stamps anymore.  You'll save time, money and benefit in other ways too.Never be late ... avoid late fees and protect your credit Schedule additional principal contributions monthly to save interest, build equity and shorten the mortgage term. An extra $200 a month applied to the principal on a $200,000 mortgage at 4.5% for 30 years will result in shortening the loan by 8.5 years.  If the loan was paid to term, it would save $52,977 in interest.  Use the Equity Accelerator to see how much you can save. It's convenient ... by doing it online with your bank, you'll have a centralized history of the payments. Protect your credit ... your payment history is the single biggest component of your credit score and accounts for over 1/3 of your credit score.Establishing the practice of auto bill pay could run the risk of overdrawing an account and incurring overdraft charges.  Monitor your bank account to be sure that you have enough cash to cover your automatic payments. Schedule the Auto Pay to allow for processing and the time it takes to reach the lender so that you don't incur late fees. And even though, you set up the Auto Pay, it is still your responsibility to monitor your bank account to see that they are executing it properly.  If you are making additional principal contributions, you must see that the extra amount was indeed applied to principal reduction and not somewhere else like in the escrow account. Some banks offer email or text reminders to let you know when checks are about to be written or if your balance is low. Buy or Sell with Patty Clark              Denver/Aurora Co. and surrounding areas Helping Families Move with Care If you would like to be sent properties on a daily or weekly  basis just call or email me and let me know your wants and  needs. A match will be made with a home you love and with  monthly payments you can afford. I specialize in first time                       home buyers and sellers who are ready to make a move. Morningside Homes, LLCpatty@morningsidehomes.com www.morningsidehomes.comCell: 720-231-5200                       CRS,GRI,WCR,SFR,CNE, MRE

Homeowners To-Do list

3/27/2019 Checklists work because they contain the important things that need to be done.  They provide a reminder about things we know and realize but may have slipped our minds as well as inform us about things we didn't consider.  Periodic attention to these areas can protect the investment in your home.Change HVAC filters regularly.  Consider purchasing a supply of the correct sizes needed online and they'll even remind you when it's time to order them again.Change batteries in smoke and carbon monoxide detectors annually. Create and regularly update a Home Inventory to keep track of personal belongings in case of burglary or casualty loss. Keep track of capital improvements, with a Homeowners Tax Guide, made to your home throughout the year that increases your basis and lowers gain.Order free credit reports from all three bureaus once a year at www.AnnualCreditReport.com.Challenge your property tax assessment when you receive that year's assessment when you feel that the value is too high.  We can supply the comparable sales and you can handle the rest. Establish a family emergency plan identifying the best escape routes and where family members should meet after leaving the home. If you have a mortgage, verify the unpaid balance and if additional principal payments were applied properly.  Use a Equity Accelerator to estimate how long it will take to retire your mortgage. Keep trees pruned and shrubs trimmed away from house to enhance visual appeal, increase security and prevent damage. Have heating and cooling professionally serviced annually. Check toilets periodically to see if they're leaking water and repair if necessary. Clean gutters twice a year to control rainwater away from your home to protect roof, siding and foundation. To identify indications of foundation issues, periodically, check around perimeter of home for cracks in walls or concrete.  Do doors and windows open properly? Peeling or chipping paint can lead to wood and interior damage.  Small areas can be touched-up but multiple areas may indicate that the whole exterior needs painting. If there is a chimney and fires are burned in the fireplace, it will need to be inspected and possibly cleaned. If the home has a sprinkler system, manually turn the sprinklers on, one station at a time to determine if they are working and aimed properly.  Evaluate if the timers are set properly.  Look for pooling water that could indicate a leak underground. Have your home inspected for termites.Instead of remembering when you need to do these different things, use your calendar to create a system.  As an example, make a new appointment with "change the HVAC filters" in the subject line.  Select the recurring event button and decide the pattern.  For instance, set this one for monthly, every two months with no end date.  You can schedule a time or just an all-day event will show at the top of your calendar that day. By scheduling as many of these items as you can, you won't forget that they need to be done.  If you don't delete them from the calendar, you'll continue to be "nagged" until you finally do them. If you have questions or need a recommendation of a service provider, give us a call at (720) 231-5200.  We deal with issues like this regularly and have experience with workers who are reputable and reasonable. Buy or Sell with Patty Clark              Denver/Aurora Co. and surrounding areas Helping Families Move with Care If you would like to be sent properties on a daily or weekly  basis just call or email me and let me know your wants and  needs. A match will be made with a home you love and with  monthly payments you can afford. I specialize in first time                       home buyers and sellers who are ready to make a move. Morningside Homes, LLCpatty@morningsidehomes.com www.morningsidehomes.comCell: 720-231-5200                       CRS,GRI,WCR,SFR,CNE, MRE


Patty Clark | Broker/Owner | 720-231-5200 | Contact Me

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