Newberg, OR

10 Important Facts about the Extended First-Time Homebuyer Credit

If you are in the market for a new home, you may still be able to claim the First-Time Homebuyer Credit. Congress recently passed The Worker, Homeownership and Business Assistance Act Of 2009, extending the First-Time Homebuyer Credit and expanding who qualifies.

Here are the top 10 things the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it.

1. You must buy - or enter into a binding contract to buy a principal residence - on or before April 30, 2010.
2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.
3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.
4. A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you've lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.
5. The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250.
6. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.
7. The IRS will issue a December 2009 revision of Form 5405 to claim this credit. The December 2009 form must be used for homes purchased after November 6, 2009 - whether the credit is claimed for 2008 or for 2009 - and for all home purchases that are claimed on 2009 returns.
8. No credit is available if the purchase price of the home exceeds $800,000.
9. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
10. A dependent is not eligible to claim the credit.

For more information about the expanded First-Time Home Buyer Credit, visit IRS.gov/recovery.

Links:

• First-Time Homebuyer Credit
• IR-2009-108, First-Time Homebuyer Credit Extended to April 30, 2010; Some Current Homeowners Now Also Qualify

YouTube Videos:

• Recovery: New Homebuyer Credit - November 2009
• Consejo Tributario: Consejos Tributarios de Fin de Año Noviembre 2009

Homebuyer Tax Credit Extended and Expanded

Great news for homebuyers! The Homebuyers Tax Credit has been extended into the first half of 2010...and it has been expanded to include benefits for current homeowners!

Who Qualifies? First-time homebuyers may be eligible for the tax credit worth 10% of the purchase price of the home, with a maximum available credit of $8,000.

In addition, the program now gives current homeowners an additional reason 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.

Eligible Incomes: Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more 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 can receive a partial credit; however, joint filers who earn $245,000 and above are ineligible.

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.

More Newberg Homebuyers Qualify for Homebuyer Tax Credit

President Obama has just signed an expanded version of the $8,000 first time home buyer tax credit that was set to expire on November 30. This will allow more Newberghomebuyers, both first time homebuyers and move up homebuyers, to qualify for the tax credit.

The new version of the tax credit has the potential to stimulate the housing market even more than the old version due to the fact that more Oregonians will qualify under the new rules. Although the tax credit remains at $8,000 for home buyers that have not owned a primary residence in the last three years, it has been expanded to include a $6,500 tax credit for home buyers that have lived in their current primary residence for at least five consecutive years out of the past eight years. Under the old rules, move-up home buyers did not qualify.

Consider these three examples:

Example 1:
Jane purchased a home in 2002, lived there for 5 years as her primary home, moved
out in 2007, and turned that home into a rental property. If Jane decides to buy a
new primary residence today, she would qualify for the $6,500 tax credit based on
the fact that she lived in the same residence as her primary home for at least five
consecutive years out of the past eight.

Example 2:
Harry purchased a home in 2004, and lived there for the past 5 years as his primary
home. If Harry decides to buy a new primary residence today, he would qualify for
the $6,500 tax credit based on the fact that he lived in the same residence as his
primary home for at least five consecutive years out of the past eight.

Example 3:
Nicole purchased a home in 2006, and lived there for the past 3 years as her primary
home. If Nicole decides to buy a new primary residence today, she would not qualify
for the $6,500 tax credit based on the fact that she did not live in the same residence
as her primary home for at least five consecutive years out of the past eight.

The tax credit applies to Newberg, Oregon homes purchased for less than $800,000 before May 1,
2010. If you sign a binding contract to purchase a home before May 1st, you would
need to close on the transaction before July 1, 2010. It works kind of like a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.

The income limitation for single tax payers in Newberg went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. This means that more people will qualify for the credit - especially in parts of Oregon with higher costs of living. This should help stimulate parts of the housing market that may not have been impacted by the old version of the credit. As an example, earlier this year I helped a single Fire Fighter get into a townhome. He works a lot of overtime and makes around $90,000 per year. This disqualified him for the tax credit under the old rules, but he would qualify under the new rules.

There are many creative ways of structuring your home purchase transaction in ways
that maximize the benefits of the credit. Here are a few examples:

• The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence - you could live in one unit and rent out the others.
• If two unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit.)
• The credit applies even if you have co-signers on your mortgage loan.

Combined with the USDA Guaranteed Rural Home Loan or an FHA Loan, lower property values, many great homes on the market and today's great rates, there has never been a better time to buy a home in Oregon.

Home buyers who work with a Certified Mortgage Planning Specialist are much better equipped to save money and navigate the complexities of the tax credit.

Influenza has been reported in Newberg schools. It is not known whether or not this is H1N1 influenza because doctors and emergency rooms are not testing for H1N1 flu.

Anyone with influenza needs to remain at home. Influenza is a viral illness characterized by a fever above 100^o, a cough, sore throat, body aches chills nausea and fatigue. H1N1 flu symptoms are similar to the symptoms of seasonal flu.

If students become sick with respiratory symptoms and a fever at school, the school office will notify parents or guardians to pick up their student and take them home or to a health-care provider. Emergency telephone contacts will be made in the event parent or guardians cannot be reached. Please make sure your student's school has current contact information for you at home and at school.

Students should not return to school until they no longer have a fever, or signs of a fever, for 24 hours without using fever-reducing drugs.

Influenza is highly contagious and is spread mainly from person to person when people with influenza cough or sneeze. We are doing everything we can to keep schools functioning as usual. Here are recommended ways to reduce the spread of illness:

• Wash hands frequently with soap and water or an alcohol-based hand sanitizer
  
• Cover coughs and sneezes
• Keep sick children home
• CDC recommends vaccination

Please contact the school office if your child is sick. More information about H1N1 influenza is available on the school district website including links to local and federal health resources.

Yamhill County Public will conduct H1N1 influenza vaccination clinics at district schools in early November. Children from 6 months to 24 years of age are considered at risk for the H1N1 virus and are part of the target group to receive the vaccine soon after it becomes available.

Children will not be not be vaccinated without signed parental consent. Parents can expect to receive information from the Public Health Department including a consent forms within the next week. The information will be available online as soon as it is available.

Vaccination clinics will be held at all public and at private schools. Some clinics may extend hours to vaccinate other members of the target group, which includes pregnant women, household contacts and caregivers for children younger than six months old, people from six months - 24 years of age and persons 25 - 64 years who have health conditions associated with higher risk of medical complications. For a more detailed description of the targeted group, see http://www.flu.oregon.gov/DHS/ph/acd/flu/h1n1flu-subcommittee.shtml#target