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Robert Foust |North Orange County | Fullerton Real Estate | Brea Real Estate

New Real Estate Tax Break 101 - A CPA gives the whole run down

My CPA has put it all down in one easy to understand briefing. I have attached it as an "informed" professional testimonial for what the new law entails. I am sure many have re-capped it in their own words, but I wanted to get it straignt from a pro who does this for a living. Hope it helps all of you.

S&C 300 dpi 40
FIRST-TIME HOMEBUYER CREDIT UPDATE!
November 16, 2009
Dear Robert,
We are contacting you today to alert you to a significant change in the First-time Homebuyer Tax Credit that was written into the recently passed Worker, Homeownership, and Business Assistance Act of 2009. Especially as the close of the current tax year approaches, you may want to take certain steps to maximize your tax savings under the new law. We are here to assist you and answer your questions. First-time homebuyer credit: The first-time homebuyer credit is one of the most popular tax incentives in recent years. However, it is not a permanent tax break. It is temporary. Its originally scheduled expiration date of November 30, 2009 prompted Congress to extend and expand it. The new law extends the maximum $8,000 credit for principal residences purchased on or before April 30, 2010. If a taxpayer enters into a binding contract (i.e. enters escrow) before May 1, 2010 to close on the purchase of a principal residence before July 1, 2010, the credit will apply. Members of the U.S. armed forces, foreign service and intelligence community may have additional time to claim the credit if they are serving on qualified official extended duty outside of the U.S. Until now, the credit was limited to first-time homebuyers. The full credit (the $8,000 credit) is still limited to first-time homebuyers. However, some long-time residents of the same principal residence may be eligible for a reduced credit of $6,500. Generally, you must have owned and used the same residence as your principal residence for any five consecutive-year period during the eight year period ending on the date of the purchase of a subsequent principal residence. This provision is intended to help younger homeowners who are trading up and seniors who may be looking to downsize. Another change in the new law is notable in enabling many more taxpayers to take advantage of the credit. Congress raised the income phase-outs for the credit. Previously, the credit phased out for single individuals with modified adjusted gross income (MAGI) between $75,000 and $95,000 and for married couples filing joint returns with MAGI between $150,000 and $175,000. Under the new law, phase out starts for single individuals with MAGI at $125,000 and for married couples filing joint returns with MAGI at $225,000.
The homebuyer credit can be very valuable. The credit is also very complex. In addition to the provisions we have described, there are special rules for repayment, new documentation requirements, a purchase price cap, and more. Please contact our office for more details about the credit.
Sincerely yours,

Michael Silverberg, CFP, EA
Coleman Cook, CFP, EA, MBA

Check for comparable neighborhood prices at www.foustonline.com, Home searches will help you to see what the market is saying. Also review neighborhoods to get a comparison of the areas.

Follow Us on Twitter!

The link is just off to the left! What's Twitter? Ok we think the way it's usually used is kinda wierd. We're not sure why anybody would want status updates of what others are always doing. Anyway, we have found a cool use for it and are going to use it to give our information-hungry clients the latest real estate information, hot properties for sale, and things they really really should know.

Check for comparable neighborhood prices at www.foustonline.com, Home searches will help you to see what the market is saying. Also review neighborhoods to get a comparison of the areas.

Big deposits help La Mirada real estate buyers get chosen

La Mirada real estate, not unlike others, can be aided by buyer using a unique offering strategy. Recent buyers have started offering very large deposits with their offers to purchase homes in La Mirada. Homes for sale in La Mirada are being lured by a relly big deposit (like $20-30,000) in place of the normal 1 or 2% deposit. It is really just a lure to be selected by the Seller, seeing large numbers. The risk to Buyer is fixed at 3% or the earnest money deposit , whichever is less -- in these cases it is still just the 3%, no matter how high the deposits is. La Mirada real estate is just where we have used this strategy most recently - it works in many other areas.

Check for comparable neighborhood prices at www.foustonline.com, Home searches will help you to see what the market is saying. Also review neighborhoods to get a comparison of the areas.

South Bay Home For Sale - Harbor City, CA

Price: $249,000 Bed: 2
Baths: 3
SqFt :1,008
Pre-forclosure sale
HOA Dues $ 200 + 0
Garage: 2 cars
Beautiful Cambridge Court Townhouse Priced To Sell! Vaulted Ceilings add dramatic look in Spacious Bedrooms, including Master Suite. Home has been lovingly maintained and is ready to move right in! This is NOT a Fixer.
Living Room is spacious and centered around handsome Fireplace. Two Full Bathrooms Upstairs and a Convenient Half Bathroom in Living Area. Light and Bright Kitchen will make meals a pleasure. Community has nice Pool, Security Gate, and Grassy Areas. Outside patio has room for a barbeque as well as a table and chairs.
This is a short sale so buyers will need to exercise some patience with the process, however, we do have a good contact with the lender and expect this to be a quick short sale. This Townhome has all of the most important things condo buyers are looking for: Private Laundry, No Upstairs/Downstairs Neighbors, and Private Direct Access Garage Parking....Better hurry, this deal won t last long.
Check out our website for more information.

Serrano Heights View Home Recently Sold --2651 N Promontory Way, Orange CA

Just Sold by us for
$778,000


Beautiful Serrano Heights View Home!



4 Bed
4 Bath
Nearly 3000 Sqft

180 degree view lot

Built in 2002

Not a short sale or reo.




2651 N. Promontory Way
Orange, CA


Learn more about real estate in the city of Orange with our home buying guide and then find the right home at our city of Orange homes for sale page