Thomasville, NC

The first-time homebuyers within certain income limits who purchase a home in 2009 before December 1, 2009 will receive a tax credit of up to $8,000.

This is a tax credit, not a tax deduction, meaning its a dollar-for-dollar decrease to your tax liability. Also, the tax credit is refundable, meaning you can receive the full value of the credit even if you do not have an $8,000 tax liability.

The amount for either credit is the lesser of 10% of the home purchase price or $8,000.

The $8,000 credit will not need to be repaid.

If the home is sold within the first three years, the full amount of the credit is due upon sale.

To qualify as a first-time home buyer as defined in the program.

The purchaser (and the purchaser's spouse) may not have owned a home in the three years prior to the purchase date of the home. The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying homes include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured or homes and houseboats used for principle residence also qualify. For new construction, the purchase date is considered the day you occupy the home; therefore you must move-in by November 30th 2009 to qualify for the tax credit.

Phase-Out

The tax credit phases-out for individuals making $75,000 or over modified adjusted gross income (MAGI), and couples making $150,000 or over MAGI. Below are examples of how the phase-out will apply to the two different scenarios.

Individual Making $75,000 or Over

Assume that an individual homebuyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

Couple Making $150,000 or Over

Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

When Can the Tax Credit be Claimed?

The $8,000 tax credit can be claimed for your 2008 tax year (filed by April 15th 2009), 2008 amended return or 2009 tax year.

Who Cannot Take the Tax Credit

• Individuals making $95,000 or over MAGI, and couples making $170,000 or over MAGI; meaning you receive no tax credit if your income is this much or more a year.
• You buy your home from a close relative, including: parent, sibling, spouse, grandparent, child, etc.
• You sell your home within the first three years of purchasing it. If this occurs, the tax credit must be repaid.
• You are a non-resident alien

How About Those Who Purchased Homes in 2008?

Homes purchased in 2008 are subject to the $7,500 repayable tax credit if taken on their tax returns.

From the Desk of Don Draughn, Professional Mortgage Consultant

Website: http://ahfmortgage.elliemae.net/ddraughn

Having grown up in Davidson County, NC, I have many fond memories of time spent with family and friends. To this day my parents still live in the area as well as several cousins. One thing that always stood out in my mind and caught my attention was the the "Big Chair" in Thomasville. I always thought it was a very novel thing to have in your community. I used to tell everyone that I grew up near the World's Largest Chair and many times they did not believe me. So, I thought I would share a little information about the chair and Thomasville in this post. It is a great town to live in with many things that set it apart as a quaint little town. I hope you enjoy.

History of the Big Chair

The story began in 1922. It seems Thomasville had already gained a reputation as "The Chair Town" due to the fact that products of Thomasville Chair Company (now Thomasville Furniture Industries) were almost exclusively simple, sturdy, straight-back chairs. Somebody, no one knows for certain who, got the idea to erect a big chair to call attention to the town's chief industry.

Thomasville has actually had two big chairs. The first one was erected in September 1922, at almost the same spot occupied by the one standing today. It was made by Thomasville Chair Company and took enough lumber to build 100 ordinary chairs. The project kept 3 men working 10 hours a day for 1 week. When completed it stood 13 feet 6 inches tall. The seat was 6 feet by 5 feet 6 inches tall and covered in leather made from the hide of a Swiss steer.

After nearly 15 years of exposure, the local chair was scrapped in 1936. Thomasville, though, had by no means lost interest. In fact, shortly after the first chair was taken down, another larger, more ornate chair was considered. It was not until 1948; however, after the Chamber of Commerce was formed, that the restoration movement began. This time it was decided the chair was to be built to last forever.

Chamber Manager, Kenneth Hoyle, asked James Buford Harvey if he could build a concrete chair. Harvey, who also built the life-sized concrete lion which stands today opposite the big chair, said he would try. The Chamber interested several local businesses to help, including Thomasville Chair Company. Their dean of designers, Thomas W. Johnson designed a reproduction of the Duncan Phyfe armchair which stands today overlooking the Square downtown.

A steel skeleton was fashioned by Salem Steel Company of Winston-Salem. Harvey, working in the Thomasville Chair plant on Taylor Street, fabricated wire mesh to fit over the steel skeleton in proportions dictated by Johnson's plans. After that, Harvey labored for over six months coating the mesh-a spoonful at a time-with a mixture of cement and granite dust to a thickness of about a half-inch. The chair was then painted to make it appear that it was built with wood and to suggest the seat had been upholstered with a striped fabric.

Meanwhile, the Chamber, City and others came along with the base. The cornerstone was laid on January 9, 1951. A time-box embedded in the cornerstone included among other things, a Bible, photos, a safety razor, a prospectus for eliminating railroad grade crossings, a city directory, brochures, civic records, and a letter from Mayor Harry B. Finch.

When completed, the new Big Chair of Thomasville stood 30 feet high from the bottom of the 12-foot base to the top of the 18- foot chair. The seat was 10-1/2 feet wide. In 1960, The Thomasville Chair gained national attention when vice-presidential hopeful Lyndon B. Johnson stopped to greet local supporters from atop the chair while on a campaign whistle stop. The Big Chair has since hosted governors, university presidents, mayors, beauty queens, and even an evangelist. It has also been listed in Ripley's Believe It or Not.

Today, the Big Chair of Thomasville is still a focal point for tourists as well as local citizens; and, continues to call attention to our city's chief industry. While other communities have seen bigger chairs come and go, Thomasville still boasts the remaining "WORLD'S LARGEST CHAIR!"

Don Draughn is a Professional Mortgage Consultant and a Sale Manager at Affordable Home Funding, Inc. located at 900 Perinton Hills Office Park, Suite 970, Fairport, NY, 14450. His phone number is (585) 425-5811. He is available to serve your needs for residential and commercial mortgages in Rochester NY and all of New York State.

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