Uh-oh, tax time is here again - but this year, there is a little more hope for filers: April 15th falls on a Saturday, requiring that all income tax returns must be postmarked by midnight, Monday, April 17th. Also, this year the IRS IS GIVING TAXPAYERS A NEW BREAK, allowing an option for a SIX-MONTH AUTOMATIC EXTENSION (this does NOT extend the tax-payment deadline) by filing application form #4868:

The new regulations provide streamlined and simplified procedures that are expected to save taxpayers between $73 million and $94 million, annually, by eliminating or consolidating several existing IRS forms. As a result, beginning Jan 1, 2006, most individuals and businesses will be able to request a full six-month tax-filing extension, WITHOUT A REASON OR EVEN A SIGNATURE.

Major itemized tax deductions for homeowners:

· MORTGAGE INTEREST - Interest on mortgage loans on a first or second home is FULLY deductible. LIMITATIONS: Acquisition loans up to $1 million and home equity loans up to $100,000. Keep in mind that if you are married, but file separately, the limits are split in half. Also, there are no tax restrictions on the use of money obtained from a home equity loan - you no longer have to justify your loan as meeting certain educational or medical requirements.
· TAXES - Property taxes (state AND local) can be deducted. Real Estate taxes are deductible only in the year they are actually paid to the government. Make sure you REVIEW YOUR SETTLEMENT SHEET CAREFULLY to see if you may have reimbursed your seller for a portion of the prepaid taxes through the end of 2005. Lenders are required to send your annual statements to borrowers by the end of Jan of each year, reflecting interest and taxes paid for the previous years.

· POINTS - When you obtain a mortgage loan, you often have to pay one or more points to get that loan. Whether referred to as "loan origination fees," "premium charges," or "discounts," they are still points. Each point is 1% of the amount borrowed. So if you obtain a loan of $250,000, each point will cost you $2,500. Points are deductible, but there are some complications so you should consult a CPA.

There seems to be a HUGE DISCREPANCY regarding opinions ON LAND VALUE between the city of Scottsdale and the Pennsylvania-based luxury home builder, Toll Brothers. This lack of agreement looks like it may result in the LARGEST CONDEMNATION VERDICT IN AZ HISTORY! A difference of $224,000 per acre is the issue with the city claiming an acre in Scottsdale just north of McDowell Mountain Ranch is worth about $86,000 and Toll Brothers, $310,000. Unless a settlement can be reached, a Maricopa County Superior Court jury will decide on the lands value. Though Toll Brothers bought part of the 780- acre tract from the AZ State Land Dept in 2002 for only $85,000 per acre, the city had paid nearly $600,000 per acre this past September for nearby state land.

INVESTORS are again deciding the future of metropolitan Phoenix's HOUSING MARKET. Prices in 2005 have RISEN at least 25% with their PURCHASING SPREES with a high of $263,000 for the peak median price of an existing home in September. This has become the major ECONOMIC INDICATOR in the Valley, above population and job growth! Even Job growth is extremely strong in Scottsdale - we've seen the LARGEST job growth rate since 1999 last year with a gain of 97,700 non-farm jobs and a 4.1% increase over 2004. Last year, investors accounted for at least 25% of all Valley home buyers last year, compared with the national average of 23%. Something to watch for would be the RESELLING of these INVESTED PROPERTIES and the effect it has on all Valley home prices as the investing spree calms. In fact, it looks as if investors have already cashed out of metro Phoenix's housing market. The percentage of new homes selling to investors DROPPED from a high of 11% last January to 5% at the end of 2005. About 18% of all used homes were selling to investors in December (a drop from 20% in September). Another notable comparison is the additional 10 days it takes to sell a house from a year ago.

It seems like with AFFORDABLE HOMES, comes A TERRIBLE COMMUTE. There has been an ongoing issue along 3 MAIN ROUTES linking Pinal County's homes to Maricpoa County's jobs. With 3-mile long backups and bumper-to-bumper traffic every morning, the commute averages around 3 hours. Business and residential growth are to blame - just six years ago, there were only 2,400 vehicles a day go into Queen Creek and then north to the Superstition Freeway. Today, the intersection is seeing about 21,000. The reason this is such a mess is because the OVERLAPPING JURISDICTIONS in Maricopa and Pinal counties have failed to communicate, cooperate, or coordinate efforts to better the condition. It will only get worse as huge PLANNED SUBDIVISIONS like Anthem in Florence keep testing Pinal County's population. There is also a large issue concerning other businesses that travel, like school buses and emergency response teams. PROPOSALS? Widening Ironwood Dr./Gantzel Road between the Freeway and Hunt Highway; adding an additional, though winding, way in and out of the Santan area; and redesigning and adding a traffic light to the intersection of Ellsworth and Hunt.

Soaring home prices have spawned a wave of condo CONVERSIONS that have forced tens of thousands of apartment dwellers to search for new homes. Nearly 7,000 apartments from Ahwatukee to north Scottsdale were in the process of conversion, and the trend is definitely continuing. Investors are ACKNOWLEDGING THE DEMAND and paying MILLIONS for condo- conversion properties. It is predicted that about 20,000 apartments will be converted to condos before the trend slows in a few years.

INGREDIENTS:

· pie crust for 2 crust pie
· 3 Tbsp. unsalted butter
· 3 Tbsp. flour
· 1/4 tsp. pepper
· 1/2 tsp. dried thyme leaves
· 1/2 cup chicken broth
· 1/2 cup skim milk
· 1 cup shredded Colby cheese
· 1/4 cup grated Parmesan cheese
· 2 cups chopped skinless cooked turkey or chicken
· 9 oz. pkg. frozen broccoli florets, thawed and drained

PREPARATION:

Preheat oven to 425 degrees F. Line 9" pie pan with one of the pie crusts and set aside.

Melt butter in medium saucepan and add flour and pepper. Cook until this roux is bubbly, stirring constantly.

Add broth and milk, stirring constantly until mixture boils and thickens. Add cheese and stir until combined. Add chicken and broccoli. Pour into bottom crust. Top with second crust, cutting slits in top crust for steam to escape.

Bake at 425 degrees F for 30-35 minutes until crust is golden brown and filling bubbles. Let stand 10 minutes before serving. Makes 6 servings.

Sources: "Land value gap wide for gateway". Peter Corbett. The Arizona Republic. Jan 23, 2006. "As speculators go, so goes housing market". Catherine Reagor. The Arizona Republic. Jan 21, 2006. "Job growth shows economy strong". Elias C. Arnold. The Arizona Republic. Jan 23, 2006. "Historic zoning hard sell in PV". Diana Balazs. The Arizona Republic. Jan 17, 2006. "Condo conversions booming". Peter Corbett and Betty Beard. The Arizona Republic. January 20, 2006. "Affordable homes, horrible commute". Carl Holcombe. The Arizona Republic. January 22, 2006.