Jim Hale - On the MOVE for You! Eugene - Springfield Oregon Real Estate

You've just closed (or will be closing soon) on the purchase of your new home. You've been told you're eligible* for the new $6500 fully-refundable federal

You've got just one question:

The short answer is: It's up to you!

But your available options will be determined by whether the closing date of your purchase is:

And you will have to keep in mind the income limitations applicable to the calendar year option you pick.


For purchases closed between November 7 and December 31, 2009, your options are:


1) Elect to File as if the purchase was made in Tax Year 2008.

Wait for a new November 2009 revision of Federal Tax Form 5405.

File the new Federal Tax Form 5405 to compute and claim the credit.

Attach a copy of your HUD-1 settlement form (closing statement) to that new Form 5405 as proof of the completed home purchase.

File a Federal Form 1040X (Amended Return) to amend Line 69 of your previously filed 2008 Federal Tax Return.

2) File as if the purchase was made in Tax Year 2009.

After January 15, 2010:

File a 2009 Federal Form 5405 (not yet published) to claim the credit.

Attach a copy of your HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase.

File your regular 2009 Federal Income Tax Form 1040 in the usual way, reporting the credit amount on Line 67.

For purchases closed after January 1, 2010, your options are:


1) File as if the purchase was made in Tax Year 2009.

After January 15, 2010:

File a 2009 Federal Form 5405 (not yet published) to claim the credit.

Attach a copy of your HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase.

File your regular 2009 Federal Income Tax Form 1040 in the usual way, reporting the credit amount on Line 67.

If you purchase you home after filing your 2009 income tax return (but before the April 30 deadline to have your purchase under contract and the June 30 deadline by which the sale must close) you can elect to file a 1040X to amend 2009.



2) File as if the purchase was made in Tax Year 2010.

After January 15, 2011:

File a 2010 Federal Form 5405 (not yet published) to claim the credit.

Attach a copy of your HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase.

File your regular 2010 Federal Income Tax Form 1040 in the usual way, reporting the credit amount on the appropriate line.

If you choose to file the credit for 2008, the income limits (Modified Adjusted Gross Income - MAGI) associated with the First-Time Home-Buyer credit on December 31, 2008 will apply. Those were:

$ $75,000 for single filers
$ $125,000 for married filing jointly.

Also applicable for 2008 will be the pro-rating/phase out of the tax credit for those having incomes just above those stated limits ($95,000 and $145,000).

If you choose to file the credit for 2009 or 2010, the income limits (Modified Adjusted Gross Income - MAGI) associated with the credit on December 31, 2009 will apply. Those are:

$ 125,000 for single filers
$ 225,000 for married filing jointly.


Also applicable for 2009 and 2010 will be the pro-rating/phase out of the tax credit for those having incomes just above those stated limits. See you tax advisor for the details of this provision, but the bottom line is:

If the applicable income phaseout would reduce your home buyer tax credit amount in the present year and a larger credit would be available using the prior year MAGI amounts, then you can choose the year that yields the largest credit amount.

The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

I



*(i.e. I've lived in my old personal residence for five (5) out of the last eight (8) years.)

************

Jim Hale

Principal Broker

Graduate, REALTOR Institute e-PRO
actionagents.net
1715 Linnea Avenue
Eugene, OR 97401-1962

Office: 541-484-0219
Direct: 541-543-9991
Fax: 541-485-8068

www.actionagents.net jim@actionagents.net

© 2009 All Rights Reserved

Information regarding Federal Income Tax Form 5405, used to claim the $8000 First-Time Home-Buyer Credit:

Changes have been made to the first-time home-buyer credit by the Worker, Homeownership, and Business Assistance Act of 2009, signed into law by President Obama on November 6, 2009.

As a result, the 2008 Tax Form 5405 can be used only for homes purchased before November 7, 2009, for which an election is made to claim the credit for 2008.

The IRS will soon issue a November 2009 revision of Form 5405 for claiming the credit for homes purchased after November 6, 2009.

Home-Buyers closing on a home between November 7 and December 31, 2009 can still go back and amend the 2008 return. Or they can elect to simply claim the refund on their regular Federal Income Tax Form 1040 for 2009.

Home-Buyers closing on a home after the first of the year will still be able to elect to claim the credit for tax year 2009 or wait and claim it when they file for tax year 2010.

The new Form 5405 will require attachment of the HUD-l (closing statement) proving the sale was actually completed.

************

Jim Hale

Principal Broker

Graduate, REALTOR Institute e-PRO
actionagents.net
1715 Linnea Avenue
Eugene, OR 97401-1962

Office: 541-484-0219
Direct: 541-543-9991
Fax: 541-485-8068

www.actionagents.net jim@actionagents.net

© 2009 All Rights Reserved

Unlike this You-tube girl, "All I Want for Christmas" is not my two front teeth:

What I Do Want For Christmas is for every prospective seller/buyer

who wants Uncle Santa to gift them one of those fat

$6500 Move-Up Home Buyer Tax Credits

early in the New Year - to hurry and list their current home for sale -

preferably before Thanksgiving Day.

Waiting to list in January will make it harder to both
(1) close the sale of a current home
and
(2) ink a contract for a new home
by the April 30 purchase-contract deadline.

Those who hesitate (deferring maybe to holiday shopping?) risk not only having inadequate time to meet the details of the deadline.

They also risk being in the unenviable position of trying to entice a spring-time seller into taking an offer that's contingent on the sale of their current home.

Contingent offers are a tough sell generally, but they will be death to negotiating a favorable price on the new purchase.



Waiting to list in January will mean promotional activities for a current home will not get underway until the tax-credit time period is half over. Pricing will have to err on the low side to enable a quick sale.

Then a contingent offer for the new house may be the only way to get "in the door" before the deadline.

Congress gave this new tax credit a short window of opportunity (5 1/2 months). It's benefit will only accrue to the quick and the swift.

In fact, it may not be used by nearly the numbers of folks the government is estimating. Those who do act fast will be rewarded.

On Dancer, On Prancer, On Donner And Blitzen!

Don't be playing any reindeer games:

Remember: A $6500 tax credit is tax-free money. It's the same as an Oregon home buyer receiving a least $8550 in ordinary (taxable income) in the lowest possible home buyer income tax bracket.

It's equivalent of over $10,000 in ordinary income
for most move-up home buyers.

So take it from this Santa's helper:

List with your favorite ActiveRAIN broker right away....before the Congress that looks like Santa now, begins to look like

the (snarly) Grinch that stole your spring green.

************

Jim Hale

Principal Broker

Graduate, REALTOR Institute e-PRO
actionagents.net
1715 Linnea Avenue
Eugene, OR 97401-1962

Office: 541-484-0219
Direct: 541-543-9991
Fax: 541-485-8068

www.actionagents.net jim@actionagents.net

© 2009 All Rights Reserved

Which homes are selling best in Lane County, Oregon's

BETHEL-DANEBO RMLS Market Area?

The table below compares actual closed sales of single family, detached homes in the months of

August, September and October, 2009

to the inventory available in the Bethel-Danebo market area as of

November 13, 2009.

Homes below 2000 square feet are selling well!

Homes between 2000 and 2199 have a momentary surplus of available inventory.

The inventory just below 2000 is approaching

a balanced market.

Homes below 1200 square feet show an inventory level that indicates a seller market. What is switch that will be if it holds up through the winter!

are also selling very well.

As elsewhere, the $8000 fully refundable federal tax credit

(for buyers who have not owned a personal residence

in the last three years)

is driving the sale of smaller homes.

It has been extended through April 30.

And effective right now, the new fully refundable

$6500 federal tax credit

(for those buyers who've lived in their personal residence for at least 5 of the last 8 years)

will be driving mid-range sales.

The new tax credit will only be in play for 5 1/2 months and has income limitations. That means it may have

little impact

on the number of sales or prices of homes at the high end.

But the impact in Bethel-Danebo should be significant!

************

Jim Hale

Principal Broker

Graduate, REALTOR Institute e-PRO
actionagents.net
1715 Linnea Avenue
Eugene, OR 97401-1962

Office: 541-484-0219
Direct: 541-543-9991
Fax: 541-485-8068

www.actionagents.net jim@actionagents.net

© 2009 All Rights Reserved

FERRY STREET BRIDGE

market area of EUGENE, Lane County, OR

New Listings may include properties previously listed by the same or a different brokerage.
Cancellations or Expired Listings may, therefore, by duplicated in the active category.
Pending Sales are those subject to a new sale agreement within the month.
Active Listings are those for sale on the last day of the month.
Closed Listings are those that closed in escrow within the report month.

*****

A decade's worth of supply (Active Listings) and demand (Closed Sales)
for the

Months of October

2001-2009:

And a decade of Average Prices for Closed Sales
for the

Months of October

2001-2009:

These average sales prices represent the arithmetic mean for those residential closed sales in this RMLS market area. The mix of homes sold varies over time. The average price for some months is drastically affected by an unusual number of homes selling at the TOP or BOTTOM of the range of prices. An arithmetic median would make for a better comparison but is unavailable from RMLS.