Some may be getting weary of reading about tax credits and what Congress has been up to lately. Since you’ve found your way to this web site, however, you must be considering buying or selling sometime in the near future, so let’s try to strip this down to very simple terms in an effort to explain why the next 5 months are so critical.
Many first-time buyers jumped on the bandwagon this year and purchased their first home. If you missed that bandwagon, good news, you have an extended opportunity until the end of April, 2010, to execute a contract. By doing so, most first-timers will qualify for a tax credit of 10% of the purchase price, up to $8,000. Please understand this is real money! If your tax liability is less than $8,000, you will owe nothing on your federal return plus get a check for the difference from the government.
Here’s the new wrinkle – the benefit is no longer for first-timers only! If you have owned and lived in your principle residence for 5 consecutive years out of the last 8, and earn less than $125,000 (single filer) or $225,00 (joint filers), you are likely to qualify for a tax credit up to $6,500. Despite all the media attention, we continue to be amazed how few people are aware of this. But time is of the essence! You must have a contract by April 30th, and close by June 30th!
These programs coincide with this week’s announcement that 15-year mortgage rates hit an all-time low, and 30-year rates are near their lowest. We’ve never seen a better environment for buying! We do understand that unemployment and/or credit issues present a very real obstacle to the American Dream for many, but for others, what are you waiting for? Start looking for a giant red bow to put on your biggest holiday gift ever – your new home!
Of course there are other details. Please call a Danberry Realtor or one of the Home Mortgage Consultants at First Mortgage Consultants, an affiliate of Wells Fargo Home Mortgage. They’re waiting for you on this site!
Congress has been debating a revision of the current tax credit for first-time buyers for many weeks, and it appears that terms encouraged by The National Association of Realtors have been approved by both the House and Senate, awaiting only the President’s signature which he has said is forthcoming! This is hot off the press, but we believe the following key provisions to be reliable:
Amount of tax credit: 10% of the purchase price up to $8,000 for first-time home buyers (defined as those who have not owned a home in the last 3 years); and (new) $6,500 for repeat buyers who have resided in their home for at least 5 years..
Income limits: $125,000 for single filers; $225,000 for joint filers.
Price limit: Homes over $800,000 do not qualify.
Time frame: December 1, 2009 to April 30, 2010, plus a 60-day extension to close if a binding contract is in place by April 30, 2010 (close before June 30, 2010).
Filing for the credit: Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a check. Taxpayers will be able to claim the credit on their 2009 income tax return for purchases made in 2010.
This writer has been a Realtor for 40 years, and never before have I witnessed a better time to buy! The purchase of a home is a very complex process and Danberry would love to be your guide and counselor. Please let us know how we can help you!
November is upon us, where does the time go? While we’re off to a fairly pleasant start to the month, we all know that Old Man Winter is lurking around the corner. There is no reason to wait until you hear the weather being quoted in terms of wind chill to make your home more energy efficient.
Making your home snug in the winter sounds appealing, but there are other important reasons to get on with the tasks. One is timely and affects your pocket book – it’s not too late to generate some energy tax credits for your federal tax return.
Go to http://www.energystar.gov/and look for the “1040” button on the left side (“Tax Credits for Energy Efficiency”). You may be able to knock $1,500 or more off the cost of your job by deducting that amount from your taxes. Other tips on weatherization programs can be found in this article by Realty Times (3rd bullet point, “More Articles”): http://realtytimes.com/132/DickBaker
Do you have a favorite Home Energy Saving tip? Post it here to share with our readers!
