Jeana Cowie, Broker Associate, ABR, GRI, SRES

This information is reprinted directly from the Energy Star website.

Federal Tax Credit for energy efficiency items such as windows & doors, etc:

UPDATED September 14, 2009

Quick link to this page: energystar.gov/taxcredits

Federal Tax Credits for Energy Efficiency includes:

• Tax Credits for Consumers
  • Tax credits are available at 30% of the cost, up to $1,500, in 2009 & 2010 (for existing homes only) for:
    • Windows and Doors
    • Insulation
    • Roofs (Metal and Asphalt)
    • HVAC
    • Water Heaters (non-solar)
    • Biomass Stoves
  • Tax credits are available at 30% of the cost, with no upper limit through 2016 (for existing homes & new construction) for:
    • Geothermal Heat Pumps
    • Solar Panels
    • Solar Water Heaters
    • Small Wind Energy Systems
    • Fuel Cells
• Cars
• Tax Credit Legislation
• IRS Guidance
• For More Information

Not looking for Consumer information?

• Tax Credits for Home Builders
• Tax Deductions for Commercial Buildings
• Stimulus information for State and local governments

**Please note, not all ENERGY STAR qualified homes and products qualify for a tax credit. These tax credits are available for a number of products at the highest efficiency levels, which typically cost much more than standard products. If, for whatever reason, you decide not to purchase a product covered by the tax credit, you may still consider purchasing an ENERGY STAR product. ENERGY STAR distinguishes energy efficient products which, although they may cost more to purchase than standard models, will pay you back in lower energy bills within a reasonable amount of time, without a tax credit.

Tax Credits for Consumers:

Home Improvements

Tax credits are now available for home improvements:

• must be "placed in service" from January 1, 2009 through December 31, 2010
• must be for taxpayer's principal residence, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, and small wind energy systems (where second homes qualify)
• $1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 & 2010 for most home improvements, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems which are not subject to this cap, and are in effect through 2016
• must have a Manufacturer Certification Statement to qualify
• for record keeping, save your receipts and the Manufacturer Certification Statement
• improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) - use IRS Tax Form 5695 (2009 version) - it will be available late 2009 or early 2010
• If you are building a new home, you can qualify for the tax credit for geothermal heat pumps, photovoltaics, solar water heaters, small wind energy systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters. More.

¹Subject to a $1,500 maximum per homeowner for all improvements combined.

Efficient Cars

Starting January 1, 2009, there is a new tax credit for Plug-in hybrid electric vehicles, starting at $2,500 and capped at $7,500 for cars and trucks (the credit is based on the capacity of the battery system). The first 250,000 vehicles sold get the full tax credit (then it phases out like the hybrid vehicle tax credits).

Tax credits are available to buyers of hybrid gasoline-electric, diesel, battery-electric, alternative fuel, and fuel cell vehicles. The tax credit amount is based on a formula determined by vehicle weight, technology, and fuel economy compared to base year models. These credits are available for vehicles placed in service starting January 1, 2006. For hybrid and diesel vehicles made by each manufacturer, the credit will be phased out over 15 months starting after that manufacturer has sold 60,000 eligible vehicles. For vehicles made by manufacturers that have not reached the end of the phase-out, the credits will end for vehicles placed in service after December 31, 2010. See the IRS Website for updated information .

IRS Guidance:

• IRS Notice 2009-53 (6/22/2009) Interim guidance for Section 25C
• IRS Notice 2009-41 (5/11/2009) Interim guidance for Section 25D

For More Information:

• Tax Incentives Assistance Project (TIAP)
• Brochure: Residential Energy Efficiency Incentives (TIAP - May 2009, 2 pages)

Obama Signs Homebuyer Tax Credit Extension

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RISMEDIA, November 9, 2009-President Barack Obama has approved the first-time homebuyer tax credit extension which will extend the tax credit until April 30, 2010.

The extension is part of a $24 billion economic stimulus bill that will extend the $8,000 tax credit for homebuyers who are purchasing their first home from the current November 30 deadline and expands the program to offer a credit of $6,500 to homeowners who have lived in their current home for at least five years and are seeking to relocate.

The following details apply to the homebuyer tax credit expansion:

Who is Eligible
-First-time homebuyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit.
-Existing homeowners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence ("repeat buyer"), may be eligible for up to a $6,500 tax credit.
-All U.S. citizens who file taxes are eligible to participate in the program.

Income Limits
Homebuyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.
-For married couples filing a joint return, the combined income limit is $225,000.
-Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
-The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000.

Effective Dates
-The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010.

Types of Homes that Qualify
-All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify.

Tax Credit is Refundable
-A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.

-For example:
-A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time homebuyer tax credit).
-A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit).
-All qualified homebuyers can take the tax credit on their 2009 or 2010 income tax return.

Payback Provisions
The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

The www.federalhousingtaxcredit.com site is being updated. Check the site next week for more detailed information on the new tax credit.

For more information, visit www.nahb.org.

Read more: http://rismedia.com/2009-11-08/obama-signs-homebuyer-tax-credit-extension/#ixzz0WNgcDlPx

This article is reprinted from www.Rismedia.com and is subject to errors and ommissions

EFFECTIVE LISTING PRICE & MARKETING HELPS THIS PARAMUS, NJ HOME SELL FAST!!!!

***Only 23 days on the market!!***

This PARAMUS, NJ home just closed for $370,000.

8/12/09 Original asking price $389,000.

8/29/09 Price change to $379,000 (in conjunction with a public open house).

8/27-9/1/09 = Received 4 offers - 1 of which was $380,000& the seller accepted. After home inspection negotiations ($10,000 credit to buyers), sold for $370,000 on 10/27/09.

***Only 23 days on the market***.

Homes sell when they are priced well!

Thinking of selling a Bergen County, NJ home for the most money in the shortest time?

Contact Jeana Cowie of Re/Max Real Estate Ltd 201-982-2200.

View my website at www.jeanacowie.com. E-mail jmcowie@optonline.net

Ridgewood, NJ Home = Potential list price $625,000 or $875,000???

This will always surprise me when competing for a listing. Most of the time, sellers realize the agent is not being forthright by over-inflating the sellers expectations to get the listing in Ridgewood, NJ. But, some sellers will buy into this salespitch.

What this agent doesn't realize is drastic overpricing will cost both the seller & agent time & money. Typically, the house will eventually sell for less money than if it were priced right the first time.

I notice some agents & companies are constant "repeat offenders". When you show their listing it is the same reaction from the buyer - "Where did they come up with this price?".

Maybe some brokers don't properly train the agent to do an effective cma. Each home we come across has to be reviewed carefully to determine the best list price. If the agent doesn't know the other comps, and doesn't take the time to consider all the pros & cons of each home, then maybe it is just a lazy oversight in pricing. They may not even know how overpriced it is. After all, ignorance is bliss.

Most of these listings will expire. I am very happy to help the seller GET THE HOME SOLD once it expires by PRICING IT RIGHT!!

Do you experience this in your market?