Here are some frequently asked questions about the Home Buyer Tax Credit, and a link to loads of details.
As always, consult a tax advisor or a legal professional for your specific questions.
The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.
Common Questions
* Who is eligible to claim the tax credit?
* What is the definition of a first-time home buyer?
* How is the amount of the tax credit determined?
* Are there any income limits for claiming the tax credit?
* What is "modified adjusted gross income"?
* If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
* How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
* How do I claim the tax credit? Do I need to complete a form or application?
* I read that the tax credit is "refundable." What does that mean?
* I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
* Is a tax credit the same as a tax deduction?
* I bought a home in 2008. Do I qualify for this credit?
* If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Answers
Go to: http://www.federalhousingtaxcredit.com/2009/faq.php
Friday, February 27, 2009
Thursday, February 19, 2009
Why Buy Now? 14 Reasons Why Today is the Day to Buy Real Estate
1. Falling Mortgage Rates
Mortgage rates are already at their lowest level in 50 years and banks are willing to lock these rates for the next 30 years!
2. Home Prices are Down
We know that no one can accurately predict house prices. What we DO know for SURE is right now, prices – relative to affordability – are the best they’ve been in DECADES. Is this your once-in-a-generation (or lifetime?) opportunity?
3. Housing Selection is Plentiful
The number of homes on the market continues to escalate. When paired with the exceptionally low interest rates of today, the motivation to buy increases. It’s a buyer’s market… take advantage of it while you can.
4. Current First-Time Home Buyer Tax Credit
Homes purchased after January 1, 2009 and before December 1, 2009 are eligible for a tax credit up to $8,000.
5. Tax Deductions with Home Ownership
Homeowners have the potential to deduct mortgage interest, interest on home equity financing, property taxes and more.
6. More Buying Power
With housing prices and interest rates hitting historical lows, you have the potential to buy property that might have been out of your range in years past.
7. Possibility to Buy in a Better Location
When the number of homes on the market continues to increase there are more AFFORDABLE, quality homes on the market – in desirable locations and all price ranges.
8. Pricing has rolled back to 2004
(When the market started to ROAR).
9. Huge Pent-Up demand...
Renters, its time to BEAT the market. If you have any wiggle room in a current or new lease, make your move now. Favorable renter conditions won’t last long and are predicted to start to drop as soon as the economy turns around.
10. Real Estate prices Today vs. Future Projections
They may currently be down 17%, but are projected to increase 21% over the next 3 years and 49.6% over the next 5 years. (Kiplinger)
11. Plunging Oil Prices
Today’s price per gallon (at 15,000 miles per year) is a savings of over $2,000.
12. Federal Reserve Action Plan
Simply Put — the Central Bank is pouring money into the system.
13. The Stimulus Plan
Just to name TWO possible programs:
Payroll tax deduction adding dollars to the economy.
$8,000 tax credit, no repay clause!
14. Build Your Future Now
Mortgage rates are already at their lowest level in 50 years and banks are willing to lock these rates for the next 30 years!
2. Home Prices are Down
We know that no one can accurately predict house prices. What we DO know for SURE is right now, prices – relative to affordability – are the best they’ve been in DECADES. Is this your once-in-a-generation (or lifetime?) opportunity?
3. Housing Selection is Plentiful
The number of homes on the market continues to escalate. When paired with the exceptionally low interest rates of today, the motivation to buy increases. It’s a buyer’s market… take advantage of it while you can.
4. Current First-Time Home Buyer Tax Credit
Homes purchased after January 1, 2009 and before December 1, 2009 are eligible for a tax credit up to $8,000.
5. Tax Deductions with Home Ownership
Homeowners have the potential to deduct mortgage interest, interest on home equity financing, property taxes and more.
6. More Buying Power
With housing prices and interest rates hitting historical lows, you have the potential to buy property that might have been out of your range in years past.
7. Possibility to Buy in a Better Location
When the number of homes on the market continues to increase there are more AFFORDABLE, quality homes on the market – in desirable locations and all price ranges.
8. Pricing has rolled back to 2004
(When the market started to ROAR).
9. Huge Pent-Up demand...
Renters, its time to BEAT the market. If you have any wiggle room in a current or new lease, make your move now. Favorable renter conditions won’t last long and are predicted to start to drop as soon as the economy turns around.
10. Real Estate prices Today vs. Future Projections
They may currently be down 17%, but are projected to increase 21% over the next 3 years and 49.6% over the next 5 years. (Kiplinger)
11. Plunging Oil Prices
Today’s price per gallon (at 15,000 miles per year) is a savings of over $2,000.
12. Federal Reserve Action Plan
Simply Put — the Central Bank is pouring money into the system.
13. The Stimulus Plan
Just to name TWO possible programs:
Payroll tax deduction adding dollars to the economy.
$8,000 tax credit, no repay clause!
14. Build Your Future Now
Tuesday, February 17, 2009
New Homebuyers to Get $8,000 Back
There's a nice windfall for some homebuyers in the economic stimulus bill awaiting President Obama's signature. First-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes.
A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount.
To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as "first-time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit. Additionally, there are income restrictions:
To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (higher-income buyers may receive a partial credit.)
Applying for the credit will be easy - or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.
A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount.
To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as "first-time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit. Additionally, there are income restrictions:
To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (higher-income buyers may receive a partial credit.)
Applying for the credit will be easy - or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.
Tuesday, February 10, 2009
Home Buyer's $15,000 Tax Credit?
Plus, we've had a few questions about the proposed $15,000 tax credit to home buyers.....
What we’ve heard is that the Senate approved to add to the proposed stimulus package a new tax credit that would give ALL home buyers (buying a primary, not just first-time buyers with the current $7,500 allowance) up to $15,000.
Proposed by Senator Isakson (R-Georgia) the tax credit would work like this: Buyers would get 10 percent of the purchase price of any primary home, up to $15,000, applied to their tax bill. Though the details remain to be finalized, the amendment would allow taxpayers to claim the credit on their 2008 taxes and will be recaptured if the home is sold within two years. The time frame for home purchases would be from the date of the stimulus’ enactment to one year thereafter.
The amendment verbiage can be found here: http://isakson.senate.gov/Amdt_106.pdf
What we’ve heard is that the Senate approved to add to the proposed stimulus package a new tax credit that would give ALL home buyers (buying a primary, not just first-time buyers with the current $7,500 allowance) up to $15,000.
Proposed by Senator Isakson (R-Georgia) the tax credit would work like this: Buyers would get 10 percent of the purchase price of any primary home, up to $15,000, applied to their tax bill. Though the details remain to be finalized, the amendment would allow taxpayers to claim the credit on their 2008 taxes and will be recaptured if the home is sold within two years. The time frame for home purchases would be from the date of the stimulus’ enactment to one year thereafter.
The amendment verbiage can be found here: http://isakson.senate.gov/Amdt_106.pdf
Investor Alert: Another Reason to Buy Real Estate
Well, even Fannie Mae is on board with helping investors pick up great deals in the real estate market today.
FNMA (conventional) announced that they will loosen up their non-owner occupied guidelines. Borrowers/investors will now be allowed to finance up to 10 properties! As a reminder, Fannie Mae had limited the total amount of financed homes to four during 2008 and the first part of 2009.
Moving from four mortgaged investment properties to up to 10 is quite a nice change for those investors out there that are chomping at the bit to get out and pick up more bank-owned and deeply discounted properties.
Nicely done Fannie Mae!
Want in on the best buyer's market in the last 34+ years? Call us today, start investing for tomorrow.
FNMA (conventional) announced that they will loosen up their non-owner occupied guidelines. Borrowers/investors will now be allowed to finance up to 10 properties! As a reminder, Fannie Mae had limited the total amount of financed homes to four during 2008 and the first part of 2009.
Moving from four mortgaged investment properties to up to 10 is quite a nice change for those investors out there that are chomping at the bit to get out and pick up more bank-owned and deeply discounted properties.
Nicely done Fannie Mae!
Want in on the best buyer's market in the last 34+ years? Call us today, start investing for tomorrow.
Thursday, February 5, 2009
Timely News on the Stimulus Plan and the Housing Market
Check out two recent articles on Obama's stimulus plan:
1. Grassley will support stimulus if mortgage amendment is included
Iowa Sen. Charles Grassley said Wednesday that he will vote for President Barack Obama’s $900-billion economic stimulus bill if an amendment providing low-interest mortgages is added.
“We have an alternative of 4 percent mortgages for 30 years, fixed,” Grassley said, adding: “If this is adopted, I will vote for it, regardless of what else is in the bill.”
Grassley has said the bill is too loaded down with long-term, wish-list spending. However, an emphasis on housing, like the 4 percent mortgage rate plan, would sway his vote.
Iowa’s senior senator has been targeted, along with handful of other Republican senators, by an ad campaign by a group of progressive and labor organizations asking voters to contact him to urge him to support the Obama plan.
The bill passed the U.S. House last week without a single Republican vote. It is currently being debated in the U.S. Senate.
“People at the grassroots see it as a lot of spending and not very much stimulus,” Grassley said. “Somebody thinks they’re fooling the people of this country with this package, but they aren’t.”
*Article by Jason Hancock 2/4/09 of The Iowa Independent
2. Senate approves $15,000 tax credit for homebuyers
WASHINGTON – The Senate voted Wednesday night to give a tax break of up to $15,000 to homebuyers in hopes of revitalizing the housing industry, a victory for Republicans eager to leave their mark on a mammoth economic stimulus bill at the heart of President Barack Obama's recovery plan.
The tax break was approved without dissent and came on a day in which Obama pushed back pointedly against Republican critics of the legislation even as he reached across party lines to consider a reduction in the spending it contains.
"Let's not make the perfect the enemy of the essential," Obama said as Senate Republicans stepped up their criticism of the bill's spending and pressed for additional tax cuts and relief for homeowners. He warned that failure to act quickly "will turn crisis into a catastrophe and guarantee a longer recession."
Democratic leaders have pledged to have legislation ready for Obama's signature by the end of next week.
Sen. Johnny Isakson, R-Ga., who advanced the homebuyers tax break, said it was intended to help revive the housing industry, which has virtually collapsed in the wake of a credit crisis that began last fall.
The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break but only for first-time homebuyers.
Isakson's office said the proposal would cost the government an estimated $19 billion.
Democrats readily agreed to the proposal, although it may be changed or even deleted as the stimulus measure makes its way through Congress over the next 10 days or so.
*Article by DAVID ESPO, Associated Press Writer
1. Grassley will support stimulus if mortgage amendment is included
Iowa Sen. Charles Grassley said Wednesday that he will vote for President Barack Obama’s $900-billion economic stimulus bill if an amendment providing low-interest mortgages is added.
“We have an alternative of 4 percent mortgages for 30 years, fixed,” Grassley said, adding: “If this is adopted, I will vote for it, regardless of what else is in the bill.”
Grassley has said the bill is too loaded down with long-term, wish-list spending. However, an emphasis on housing, like the 4 percent mortgage rate plan, would sway his vote.
Iowa’s senior senator has been targeted, along with handful of other Republican senators, by an ad campaign by a group of progressive and labor organizations asking voters to contact him to urge him to support the Obama plan.
The bill passed the U.S. House last week without a single Republican vote. It is currently being debated in the U.S. Senate.
“People at the grassroots see it as a lot of spending and not very much stimulus,” Grassley said. “Somebody thinks they’re fooling the people of this country with this package, but they aren’t.”
*Article by Jason Hancock 2/4/09 of The Iowa Independent
2. Senate approves $15,000 tax credit for homebuyers
WASHINGTON – The Senate voted Wednesday night to give a tax break of up to $15,000 to homebuyers in hopes of revitalizing the housing industry, a victory for Republicans eager to leave their mark on a mammoth economic stimulus bill at the heart of President Barack Obama's recovery plan.
The tax break was approved without dissent and came on a day in which Obama pushed back pointedly against Republican critics of the legislation even as he reached across party lines to consider a reduction in the spending it contains.
"Let's not make the perfect the enemy of the essential," Obama said as Senate Republicans stepped up their criticism of the bill's spending and pressed for additional tax cuts and relief for homeowners. He warned that failure to act quickly "will turn crisis into a catastrophe and guarantee a longer recession."
Democratic leaders have pledged to have legislation ready for Obama's signature by the end of next week.
Sen. Johnny Isakson, R-Ga., who advanced the homebuyers tax break, said it was intended to help revive the housing industry, which has virtually collapsed in the wake of a credit crisis that began last fall.
The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break but only for first-time homebuyers.
Isakson's office said the proposal would cost the government an estimated $19 billion.
Democrats readily agreed to the proposal, although it may be changed or even deleted as the stimulus measure makes its way through Congress over the next 10 days or so.
*Article by DAVID ESPO, Associated Press Writer
Wednesday, February 4, 2009
Portland: Top Spot for Moves Nationwide
It's No Secret, Portland is a Destination City
According to a recent article in the Portland Business Journal (Jan 14, 2009), Portland is the No. 5 destination for moves. So, it seems, the secret is out....our favorite city is fast-becoming a favorite to many.
Quite possibly the affordability factor comes into play. Many can still afford to purchase a home on their current Oregon wage. Add to that the natural beauty and close proximity to the coastline, Portland offers much more than affordable housing.
Know someone moving to the area? Have them contact us and we'll show them around this fair city, giving them a run-down on different areas and neighborhoods, so they can pick the best spot for their lifestyle.
Contact us today, start investing for tomorrow.
According to a recent article in the Portland Business Journal (Jan 14, 2009), Portland is the No. 5 destination for moves. So, it seems, the secret is out....our favorite city is fast-becoming a favorite to many.
Quite possibly the affordability factor comes into play. Many can still afford to purchase a home on their current Oregon wage. Add to that the natural beauty and close proximity to the coastline, Portland offers much more than affordable housing.
Know someone moving to the area? Have them contact us and we'll show them around this fair city, giving them a run-down on different areas and neighborhoods, so they can pick the best spot for their lifestyle.
Contact us today, start investing for tomorrow.
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