Let's Talk Real Estate

Great News! It has been tentatively agreed upon to extend the existing $8,000 tax credit for first-time home buyers! The credit has also been expanded to also offer a new $6,500 credit for existing homeowners who have lived in their current residence for a consecutive five-year period in the past eight years. Home buyers must be under contract by April 30, 2010, and close before July 1. This is exciting news!!! Spread the word!!!

If you are a First-Time Home Buyer and purchase a home before December 1, 2009 you can take advantage of the 2009 First-Time Home Buyer Tax Credit. Here's what you have to do to get your benefit: Close on your home purchase by November 30, 2009, Ensure that you are a qualified first-time buyer under IRS guidelines, Decide which year to file under, 2008 or 2009, File an amended 2008 return or choose to apply the credit to your 2009 tax return. Deciding When to Apply the Credit If you want the benefits of your credit as soon as possible: You might choose to file under your 2008 tax year. Since April 15 has already passed, you would have to file an amendment to your return. However, if you've already filed for an extension of your 2008 return, then you can simply claim the credit when you submit your return. If you anticipate a drop in income next year: You can wait to claim the credit as part of your 2009 filing. In some cases the value of the credit might be higher, particularly

If you follow my blog, you are well aware of the fact that the first-time home buyer tax credit of up to $8,000 has helped to move housing inventory during an otherwise sluggish real estate cycle. Now, both legislators and the business community are hoping to build on the incentive's success by expanding it! A number of bills have been introduced in the House and the Senate that lobby for an expansion of the measure. Among the proposed changes are: Setting a new cap of $15,000 Extending the tax break into mid-2010 Making the benefit available to all home buyers, not just first-timers Offering a separate tax credit to $3,000 for borrowers who refinance Let's keep our fingers crossed! These proposed changes will benefit many home buyers and really stimulate the real estate market!

President Obama's "Stimulus Bill" (The American Recovery and Reinvestment Act of 2009), which was signed on February 17, 2009, made significant changes to the energy efficiency tax credits. These changes apply to products "placed in service" in 2009. The highlights are: The tax credits that were previously effective for 2009 have been extended to 2010 as well. The tax credit has been raised from 10% to 30%. The tax credits that were for a specific dollar amount (i.e. $300 for a CAC), have been converted to 30% of the cost. The maximum credit has been raised from $500 to $1,500 total for the two year period (2009-2010). However, some improvements such as geothermal heat pumps, solar water heaters, and solar panels are not subject to the $1,500 maximum. The $200 cap on windows has been removed, but the requirements for windows has been increased significantly. Keep in mind that not all ENERGY STAR qualified windows will qualify. Click here for more specific info