First Time Homebuyer Tax Credit Extended Into 2010!
Plus...A New Tax Credit for Certain Existing Home Owners!
It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.
In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.
So Who Gets What?
The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.
Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Deadlines
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased.
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.
First-Time Homebuyer Tax Credit - Frequently Asked Questions
Here are answers to some commonly asked questions about the tax credit.
What is a tax credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.
What is the tax credit for first-time homebuyers (FTHBs)?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.
Who is eligible for the FTHB tax credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.
As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.
How do I claim the credit?
For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).
Can you claim the tax credit in advance of purchasing a property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.
Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.
Are there other restrictions to taking the credit?
Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.
Can you buy a home from a step-relative and be eligible for the credit?
Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.
Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?
Yes.
Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?
No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.
If you have any questions that fall outside the situations here, give me a call and if you do not have an accountant to speak with, I can refer you to one.
Joyce Kelley, CBR, SREE - 800-309-3414, The Lead Buyers Agent to Charles Stallions here in Pensacola, Pace and Gulf Breeze, Florida. Being a buyers agent allows me to really WOW my customers, devote the time needed for them to choose and pick the PERFECT home. I don't have to weigh my decisions on the sellers needs or any third party. 100% totally to the buyer. Being the Lead Buyers Agent means I set the Standard of which our team will be judged. I want the EXPERIENCE to be spectacular and any thing less is unacceptable. Call Joyce and meet first hand some of the many buyers that we have helped buy a home where you are not another buyer, are family.
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THOUSANDS OF HOMES.... One Address www.charlesstallions.com
Pensacola, Pace and Gulf Breeze Homes for sale
Looking for a home to rent, sell or buy in Pensacola, Pace or Gulf Breeze Florida. E-mail joyce@charlesstallions.com or click here for foreclosures, short sales or homes for sale or rent in Pensacola, Florida. Charles Stallions Real Estate Services located in Pensacola Florida, a 12 member team of local experts on Loan Modifications, Certified Residential Specialist, Distressed Property Specialist with fourteen years in real estate dealing in foreclosures, first time home buyer programs and investor sales. We are the company you keep, with your one stop office for Property Management, Title and Closing Solutions, FHA, VA, Conventional Loans, Termite and Pest Control, Land Surveyors, Around the House repair company, Legal Service Provider in Pensacola Florida. Click here to view Homes for sale in Pensacola Florida or search pensacolamls for new homes on the market.
Flat Fee of $2995 to SELL or MLS $1495 + 3 %
We offer Property Management for $50. flat fee monthly
Call Now 800-309-3414 for over the phone evaluation and NO Obligation
Commercial Investment in Pensacola, Florida $300,000 under current market (edit/delete)
WE SELL YOUR HOME $1495 FLAT FEE... CALL NOW 478-8811 CHARLES STALLIONS REAL ESTATE SERVICES INC.
| 7555 W HWY 98 | PENSACOLA, FL 32506 | Price: $900,000 |
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| Type Use: | BeautyShop, ChldCarCtr, Commercial, DryCleaner, Florist, Gym/Health, Hardware, Laundromat, Liquor, MedicalDent, MultiTenant, Office, Retail |
| List Office: | (CSRE01) CHARLES STALLIONS RE SERV |
Units rent for $2500 to $3500 per month, property approximately $300000 below market value.
Joyce Kelley, CBR, SREE - 800-309-3414, The Lead Buyers Agent to Charles Stallions here in Pensacola, Pace and Gulf Breeze, Florida. Being a buyers agent allows me to really WOW my customers, devote the time needed for them to choose and pick the PERFECT home. I don't have to weigh my decisions on the sellers needs or any third party. 100% totally to the buyer. Being the Lead Buyers Agent means I set the Standard of which our team will be judged. I want the EXPERIENCE to be spectacular and any thing less is unacceptable. Call Joyce and meet first hand some of the many buyers that we have helped buy a home where you are not another buyer, are family.
Why doesn't congress start spreading the wealth around by giving all their money back. Let's tax congress 90% of all the money they make and even the money they steal.
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William J. H. Boetcker
Joyce Kelley, CBR, SREE - 800-309-3414, The Lead Buyers Agent to Charles Stallions here in Pensacola, Pace and Gulf Breeze, Florida. Being a buyers agent allows me to really WOW my customers, devote the time needed for them to choose and pick the PERFECT home. I don't have to weigh my decisions on the sellers needs or any third party. 100% totally to the buyer. Being the Lead Buyers Agent means I set the Standard of which our team will be judged. I want the EXPERIENCE to be spectacular and any thing less is unacceptable. Call Joyce and meet first hand some of the many buyers that we have helped buy a home where you are not another buyer, are family.
______________________________________________________________________________________________
THOUSANDS OF HOMES.... One Address www.charlesstallions.com
Pensacola, Pace and Gulf Breeze Homes for sale
Looking for a home to rent, sell or buy in Pensacola, Pace or Gulf Breeze Florida. E-mail joyce@charlesstallions.com or click here for foreclosures, short sales or homes for sale or rent in Pensacola, Florida. Charles Stallions Real Estate Services located in Pensacola Florida, a 12 member team of local experts on Loan Modifications, Certified Residential Specialist, Distressed Property Specialist with fourteen years in real estate dealing in foreclosures, first time home buyer programs and investor sales. We are the company you keep, with your one stop office for Property Management, Title and Closing Solutions, FHA, VA, Conventional Loans, Termite and Pest Control, Land Surveyors, Around the House repair company, Legal Service Provider in Pensacola Florida. Click here to view Homes for sale in Pensacola Florida or search pensacolamls for new homes on the market.
Flat Fee of $2995 to SELL or MLS $1495 + 3 %
We offer Property Management for $50. flat fee monthly
Call Now 800-309-3414 for over the phone evaluation and NO Obligation
U.S. Treasuries suffered a setback Thursday when 3rdquarter GDP grew at a stronger-than-expected 3.5% clip. Economic growth was spurred by construction spending, a slowing of inventory reductions and a huge amount of government stimulus, which could inflate the numbers.
Treasuries see-sawed earlier in the week, as traders fretted over supply concerns (all the auctions went well), ups and downs on Wall Street, and good economic news. Last week also ended the Fed purchase of Treasuries, which was introduced in March to keep mortgage rates low. Whether the Fed or market conditions made it happen is under debate.
Tuesday's unexpected drop in consumer confidence boosted bonds. It fell to 47.7 from 53.4. Separately, Case-Shiller reported that home prices in August rose 1.2% in 20 major cities, but this had little impact on bonds.
A 3.6% drop in new home sales for September -- the first decline in six months -- sent stocks down on concerns regarding consumer strength and economic recovery, but Treasuries benefited from safe-haven buying. The 7.5-month inventory of unsold homes is at its lowest level since November 1982.
Durable goods orders rose by a predicted 1% in September, thanks to demand for machinery, capital goods and defense spending. This is the fourth increase in six months. Meanwhile, inventories fell for the ninth straight month.
Thursday's first-time unemployment claims showed a decline of 1,000 to 531,000, while the four-week average fell to 526,250. Once again, continued claims declined, with the number of people collecting benefits for more than one week dropping to 5.8 million -- the fewest since March.
Bonds responded well to early news Friday, as personal income for September was unchanged. Personal spending slid an expected 0.5% from its previous 1.3% gain, as "clunkers" ended. This confirmed that consumers have a way to go when it comes righting the economy. Core prices rose 0.1% -- good news for inflation-watchers.
Bonds closed the day with big gains that sent yields, which move inversely to price, tumbling due to a major sell-off in the equity markets.
The Chicago PMI on October manufacturing conditions jumped to 54.2 from 46.1, indicating expansion. And the University of Michigan consumer sentiment survey for October climbed to 70.2 from 69.4, perhaps signaling a more positive outlook.
In spite of a slight dip in mortgage rates during the week ended Oct. 23, the Mortgage Bankers Association reported a hefty decline in mortgage applications. Refinancings fell 16.2%, while purchase apps were down 5.2%.
Numerous reports are scheduled this week, but only a few pack a wallop. One is Wednesday's meeting of the Fed. Even though the Committee is not expected to touch interest rates, there is concern about a language change. The Fed has said repeatedly that it will keep interest rates low for an "extended" period of time. If "extended" stays there will be a big sigh of relief in the bond pits. If it's eliminated, selling will likely erupt as fears of a rate increase come to the fore.
Friday's employment report for October could impact the markets, but declines in job losses don't move the markets like the huge losses posted earlier this year did. Job losses are expected to come in at around 165,000; that's 100,000 fewer than the previous month. But the unemployment rate should rise to 9.9% from 9.8% in September.
Monday's ISM index on manufacturing conditions is another one to watch. It's expected to edge up to 53 from 52.7, which bonds would deem acceptable increase. Separately, construction spending for September is predicted to fall 0.4% versus a 0.8% rise in August.
In addition to Wednesday's Fed meeting, the ISM index on the service sector is due and could rise to 51.7 from 50.9. A larger increase might rattle the markets.
Thursday's first-time claims for the week ended Oct. 31 are unknown. Fortunately, the numbers are getting smaller and have less impact. The other report scheduled, 3rdquarter productivity, is expected to rise 5.8%, down from the previous 6.6% increase.
Quarterly earnings reports are also wrapping up, but they can definitely affect buying and selling in the bond markets. Whether or not that happens won't be known until it happens.
Joyce Kelley, CBR, SREE - 800-309-3414, The Lead Buyers Agent to Charles Stallions here in Pensacola, Pace and Gulf Breeze, Florida. Being a buyers agent allows me to really WOW my customers, devote the time needed for them to choose and pick the PERFECT home. I don't have to weigh my decisions on the sellers needs or any third party. 100% totally to the buyer. Being the Lead Buyers Agent means I set the Standard of which our team will be judged. I want the EXPERIENCE to be spectacular and any thing less is unacceptable. Call Joyce and meet first hand some of the many buyers that we have helped buy a home where you are not another buyer, are family.
______________________________________________________________________________________________
THOUSANDS OF HOMES.... One Address www.charlesstallions.com
Pensacola, Pace and Gulf Breeze Homes for sale
Looking for a home to rent, sell or buy in Pensacola, Pace or Gulf Breeze Florida. E-mail joyce@charlesstallions.com or click here for foreclosures, short sales or homes for sale or rent in Pensacola, Florida. Charles Stallions Real Estate Services located in Pensacola Florida, a 12 member team of local experts on Loan Modifications, Certified Residential Specialist, Distressed Property Specialist with fourteen years in real estate dealing in foreclosures, first time home buyer programs and investor sales. We are the company you keep, with your one stop office for Property Management, Title and Closing Solutions, FHA, VA, Conventional Loans, Termite and Pest Control, Land Surveyors, Around the House repair company, Legal Service Provider in Pensacola Florida. Click here to view Homes for sale in Pensacola Florida or search pensacolamls for new homes on the market.
Flat Fee of $2995 to SELL or MLS $1495 + 3 %
We offer Property Management for $50. flat fee monthly
Call Now 800-309-3414 for over the phone evaluation and NO Obligation
I want to be free of all the Outlook based want a be's. But we have found that Pat Zaby's program is probably the closest. We have used several different ones through the years and the tech support and maintence keep going up. What are some of you using or am I off base here. Has any one tried this program, I have been to the classes and would like to keep my contacts in Outlook and this seems to be the only one available that has Real Estate in mind.
BTW Agent 2000 for many years worked well but the tech support has skyrocketed and I didn't know that once you signed up they give you the first year but they steadily go up every year after. They have to lousiest tech support we have tried to get them on the phone for over two months for a problem they caused and we cannot even get a return phone call. I swear they send you an upgrade for the old one and then you have nothing but problems till you switch or pay their outragious tech support. I honestly think they can program this stuff, why not?
At least with MS you have them backing it up. Any thoughts please.
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