New Home Finder

By Marilyn Kennedy Melia CTW FEATURES Mortgage rates are climbing to levels not seen in years. Back then, though, higher rates carried a sweetener: Homeown- ers typically deducted mortgage interest, lowering their federal income tax bill. But since tax reform in 2017, only 11% of filers itemize, and use mortgage interest as well as another home- owner perk — property tax payments — to whit- tle down their tax bill. That's because the 2017 tax law significantly boosted the "standard deduction," which is the amount any filer can deduct from their gross income, while also cut- ting back on the amount of mortgage interest and property taxes that homeowners could de- duct by itemizing. Indeed, for tax year 2022, the standard deduction for a single filer has ratcheted up to $12,950 for single filers, and twice that for mar- ried filers. Higher rates boost itemizing benefit Now that rates are in the 5 percent range, to- day's buyers might find they can save on taxes by itemizing. In the first year, the interest portion of a 5 percent $270,000 mortgage is more than $1,000 monthly. That interest, combined with property tax, could mean that a single filer would benefit by item- izing. High-income home- buyers are more likely to benefit by itemizing since they typically pur- chase more expensive homes, notes Sarah Shannonhouse, man- ager for tax practice at the American Institute of CPAs. A typical buyer might find some tax savings, but that's no reason to take on an uncomfort- able mortgage payment. "The only thing one should think about is having emergency sav- ings, being able to afford the mortgage payment, taxes, and upkeep, while saving for retirement and other large goals," says Nadine Marie Burns, an Ann Arbor, Michigan, financial planner. Interest could lower state tax "States that assess an income tax may allow taxpayers to claim the mortgage interest deduction," says Shan- nonhouse, "regardless of whether they itemize on their federal returns." That's a sweetener for anyone paying mortgage interest who lives in a state charg- ing residents an income choice. Higher rates carry a possible tax perk lifestyle amenities have been added every year. Currently, there are a dozen neighborhoods selling homes within River Islands, includ- ing those built along lakes and parks and near trails and schools. Home sizes range from three bedrooms to up to seven bedrooms. Home designs include smart features and energy- and water- saving amenities. Prices range from the mid- $600,000s to over $1 million. Earlier this month, Avalon by Trumark Homes introduced a unique collection of only 57 homes on some of the largest lots in River Islands. The three- to five-bedroom homes in this collection include a single-story plan with 2,827 square feet and two-story plans with 3,761 and 4,191 square feet of living space. Two- and three-car garages are part of the offering, as are such dis- tinctive choices as mul- tigenerational suites, wine tasting rooms and hobby rooms. In September, Ava- lon's sister community, Avalon Point, will open in a lakeside collection. All of the plans at Avalon Point can be previewed at the Avalon sales office. Also available at this time are a limited num- ber of model homes, fully landscaped and offered with the kind of finishes and custom built-ins that made the models so memorable. The models at Sunset are available for touring by contacting the Pulte sales staff at either of its other River Islands communities, Laguna and Sanctuary. Break- water by Tri Pointe Homes has models that can be viewed with the sales agents currently working at The Cove. River Islands is renowned today for its lakes, parks and trails, its Boathouse Restaurant and Island- ers Field, a statewide destination for travel- ing league play. Future plans for River Islands include more lakes and parks, an extension of the trail system, two Town Centers, a Valley Link transit station, and a business park. River Islands is cur- rently building its third K-8 charter school, which will open in Au- gust. At the same time, the Ninth Grade Acad- emy will open its doors as well, as the first phase of River Islands High School. A new grade level will open each year until the school's completion in 2025. The River Islands Acad- emies directs the schools within the community. The best place to start a tour of River Islands is online, at www.RiverIslands. com. The sales offices are open again, as is the Welcome Center at River Islands, located at the corner of River Islands Parkway and Somerston Parkway. Content provided by River Islands River Islands from page 1 210 LAFAYETTE CIRCLE Sitting at the heart of the bustling hamlet of downtown Lafayette! Offering 5 unique floor plans with unparalleled access to world class dining, shopping, walking trails and BART. Early buyers have the opportunity to select their own finishes. Starting at $1,848,000 Now Touring *LIMITED AVAILABILITY LIVE, HOST, WALK, TELEWORK, EXPLORE AND PLAY. 2carparking 2-3bedrooms 2bathrooms (877) 678-3370 Homes | Advertising Supplement 001 BAY AREA NEWS GROUP H3

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