About Gulf Shores' Call Tinsley Myrick Of Remax For The Beach Club 251-978-5989

WASHINGTON - Nov. 5, 2009 - The $8,000, first-time homebuyer tax credit has not yet been extended beyond its Nov. 30 end date, but it's very close to gaining a longer life.

The extension was added as an amendment to an existing bill, HR 3548, that extends unemployment benefits. The U.S. Senate passed that bill on Wednesday and, after debate, the U.S. House passed HR 3548 this afternoon. It now needs only President Obama's signature to become law, and the White House has indicated it will sign it, perhaps as early as tomorrow.

Until the president signs the bill, however, it is not law.

In addition to extending the tax credit for first-time homebuyers under the current rules, the bill adds a smaller tax credit for move-up homebuyers who have lived in the house for five of the past seven years. The bill also increases the income limits of homebuyers from $75,000 (single) to $125,000; and from $150,000 (married) to $225,000.

Florida downpayment assistance

After the president signs the bill and extends the tax credit, the Florida Homebuyer Opportunity Program - a downpayment and closing costs assistance program relating to the federal tax credit -automatically gets extended too. The state still has about $28 million available for homebuyers. The money is essentially a loan to first-time buyers; they receive it upfront, use it for a downpayment or other costs, and pay it back once they get their federal refund.

For more information on the Florida Homebuyer Opportunity Program, visit the Homebuyer Center on floridarealtors.org: http://www.floridarealtors.org/AboutFar/homebuyercenter/index.cfm

Also check floridarealtors.org for updates as they're released; and, after the tax credit extension becomes law, details on the new program.

© 2009 Florida Realtors®

by Tinsley Myrick, September 9, 2009

The following information was shared at the RE/MAX of Orange Beach sales meeting yesterday by Patrick Daily, Broker/Owner.

Patrick recently attended the RE/MAX Owner meeting and brought us back this interesting info given by David Linegar, founder of RE/MAX in 1973, and Carter Murdock, Bank of America's Economist:

•Savings is at its highest level. People are saving and not spending.

•The economy is already beginning to improve. It's going to recovery slowly.

•Unemployment is REALLY at 11-12% right now.

•Have to get more people working before people will start spending again.

•Small businesses will lead us out of the recession. However, there are no incentives for small businesses right now so the recovery will be slower than it has to be. All the help is going to large corporations rather than small businesses.

•Linegar's staff is been asked to bring solutions to the White House regarding the housing market (ie: where to go with it). The current administration knows they need real results and that they have made mistakes.

•Another real estate boom is coming in 2011 & 2012!

•Where a severe recessions starts (the US), it will be the first recovery.

•Loan markets are going "back to the left."

•Markets with the largest growth percentage will recover the quickest. This is great news for Baldwin County where projected growth is 40% over the next 10 years!

•It will be good for the economy when oil is $40-$80 a barrel.

•Mortgage rates have to go up for market to recover. We are seeing the best rates we are going to see. Therefore, NOW IS THE TIME TO BUY! THESE RATES WON'T LAST!

GENERATIONAL MARKETING INFO I FIND FASCINATING:

Matures (Ages 65+): Have one more real estate transaction in them!

Baby Boomers (Ages 45-64): Have 3 transaction left. Most are downsizing. Typically haven't been savers but pretty good investors. There are 80 million Boomers.

Gen X (Ages 29-44): They have low birth rates. Not having as many kids as the Boomers. There are 48 million Gen Xrs. They are buying and selling real estate. Very tech oriented.

Millennials (Ages 15-29) (aka Gen Y): These guys will probably have similar habits as the Boomer, however, they will be wiser. They will have more kids than the Gen Xrs. There are 74 million of the Millennials. Very tech oriented.

David Linegar told everyone that agents that are unable to relate to clients with tattoos, piercings, torn jeans, etc, will get left behind when the Millennials start buying and selling! Also, we must be able to communicate to the Gen Xrs and Millennials in the ways THEY want to communicate (text, email, Facebook, etc).

Fortunately, Scott and I are in good shape with this. We are 1st and 5th year Gen Xrs. We have Baby Boomer work ethics but we do the work like Gen Xrs!

All for now.

Tinsley

Information provided by the Alabama Association of Realtors, posted by Tinsley Myrick of RE/MAX of Orange Beach on March 6, 2009.

What is it?

The Alabama Legislature has enacted a new law (§40-18-86 Code of Alabama) that requires Buyers to withhold 3% of the purchase price or consideration paid for the sale or transfer of real estate by non-resident individuals and 4% for sales by nonresident corporations, partnerships, or unincorporated associations of the State of Alabama. THE ACT APPLIES TO THE SALE OF ALABAMA REAL PROPERTY BY A SELLER WHO IS A NONRESIDENT OF THE STATE OF ALABAMA.

Why is it being withheld?

The money is required to be withheld by the Buyer in order to collect the capital gains tax owed by a nonresident seller to the State of Alabama.

Is this a new Tax?

NO. This is not a new tax but rather a new collection mechanism (§40-18-86 Code of Alabama) approved by the Alabama Legislature, to collect capital gains taxes owed on the sale of real property.

When does it take effect?

The collection mechanism law will go into effect on August 1^st, 2008 on all transfers or sales.

Are real property sales subject to taxes?

Yes, in many cases. All capital gains are subject to taxation; however, there are a number of exemptions to the law including sales involving a primary residence and the current sales price thresholds. (See below)

What are the sales price thresholds?

AUGUST 1, 2008 THROUGH DECEMBER 31, 2008

Sales by nonresidents of $800,000.00 and above are subject to the withholding requirement.

JANUARY 1, 2009 AND THEREAFTER

Sales by nonresidents of $300,000.00 and above will be subject to the withholding requirement.

Who is liable in collection of tax owed?

· Under the law the buyer is liable for the capital gains tax owed by the seller if the tax is NOT withheld and timely remitted to the Department of Revenue after the sale or transfer of the real property.

· The Alabama Department of Revenue has adopted interim guidelines, procedures, and forms for the enforcement of the collection of the capital gains tax on nonresident sales.

· Typically the closing attorneys, agents and title companies will handle the actual collection and remit to the Department of Revenue.

How does this affect sellers?

Nonresident individuals will have 3% of the purchase price or consideration paid withheld unless they execute a Department of Revenue Sellers's Certificate of Exemption, Affidavit of Seller's Residence or Affidavit of Seller's Gain. Forms will be available through the Department of Revenue's website at www.revenue.alabama.gov. (click on What's New)

Nonresident corporations, partnerships, or unincorporated associations of the State of Alabama will be subject to the 4% withholding criteria.

§40-18-86 Code of Alabama states: "Any Seller or transferor who meets all of the following conditions and who provides the buyer or transferee with an affidavit signed under oath swearing or affirming that all of the conditions are met will be deemed a resident for the purposes of this section:

1. The seller or transferor has filed Alabama income tax returns or appropriate extensions have been received for the two income tax years immediately preceding the year of sale.

2. The seller or transferor is in business in Alabama and will continue substantially the same business in Alabama after the sale or the seller or transferor has real property remaining in the state at the time of closing of equal or greater value than the withholding tax liability as measured by the 100 percent property tax assessment of such remaining property.

3. The seller or transferor will report the sale on an Alabama income tax return for the current year and file it by the due date.

4. If the seller or transferor is a corporation or limited partnership, it is registered to do business in Alabama."

Do the seller's ever get this withheld tax back?

When seller's file their tax returns their accounting professionals will determine the course of action.

How does this affect buyers?

Under the law the buyer is liable for the capital gains tax owed by the seller if the tax is NOT withheld and timely remitted to the Department of Revenue after the sale or transfer of the real property.

Are there any exemptions from the withholding law?

Yes. There are a number of exemptions to the law including sales involving primary residences. SEE SELLER CERTIFICATE OF EXEMPTION www.revenue.alabama.gov.

Why is this important?

· Nonresident sellers need to be aware of the exemptions and that a percentage will be withheld. This will obviously affect those who may need to close on another property immediately.

· Buyers need to be made aware that this is their responsibility so they are prepared at closing.

Do other states have these requirements?

YES. Approximately 14 states have similar statues and guidelines.

Who has authority over the guidelines and implementation?

Department of Revenue www.revenue.alabama.gov

Where can I read the entire Law and get further information as it is available?

AAR will continue to provide updates as information becomes available through the Department of Revenue website at www.revenue.alabama.gov.

This notice is provided for informational purposes only as a benefit to members of the Alabama Association of REALTORS®. This information is not given as legal advice. Buyers and Sellers are urged to contact closing attorneys, closing agents and/or title companies.

This article was sent to me by Karen Way of Clear Title in Gulf Shores on March 3, 2009. If you want a smooth closing, close with Karen!