Amanda Clark

Archive for October, 2009|Monthly archive page

More on Extending and Expanding the tax credit for homebuyers

In Uncategorized on October 29, 2009 at 5:15 pm

Extension of Home Buyers’ Credit Has Wide Senate Support
Washington Post, By Dina ElBoghdady
October 29, 2009
The Senate has reached a broad bipartisan consensus on extending a lucrative tax credit for first-time home buyers beyond the Nov. 30 deadline and expanding it to include some current homeowners, according to the Senate’s Democratic leader.
Under the plan, people buying their first home would receive an $8,000 tax credit if they sign a contract by April 30 and close on it by June 30, according to people familiar with the proposal who spoke on the condition of anonymity because the timing had not been finalized. Homeowners shopping for a new primary residence would be eligible for a $6,500 tax credit if they owned their home for five consecutive years in the previous eight.
In both cases, individuals who earn more than $125,000 annually and couples who earn more than $250,000 would not be eligible, the office of Senate Majority Leader Harry M. Reid (D-Nev.) said on Wednesday.
Reid and other supporters of the tax credit hope to attach their proposal to an unemployment benefits bill that may reach the Senate floor this week if lingering issues are resolved about whether to also include two unrelated Republican amendments.
“We do expect this tax credit plan to be considered as a part of the unemployment bill at some point,” said Regan Lachapelle, a spokeswoman for Reid.
The proposal is the latest of several regarding the tax credit that have been floated in recent days. Reid and others have been trying to cobble together a plan that would appeal to fiscal conservatives who have balked at the cost of the tax refund program and want it to lapse by the end of next month, as scheduled.
On Wednesday, Senate Minority Leader Mitch McConnell (R-Ky.) said there is wide backing for the latest plan among Republicans, saying that “most members” support it and the underlying unemployment measure. But Don Stewart, his spokesman, warned that nothing is a done deal.
“Everything is fluid” until there is unanimous agreement on what will reach the Senate floor, Stewart said.
The tax credit was enacted early last year to help jump-start the housing market. Real estate industry officials say it has helped boost sales and clear out a glut of lower-priced homes, including foreclosures, which have helped drag down home prices.
But the program’s staunchest critics, including some economists, argue that most of the people who received the tax credit would have bought homes anyway.

Advertisements

Extend (and expand) This!

In Uncategorized on October 14, 2009 at 6:46 pm

How The Tax Credit Works
“The recent tax credit was part of the stimulus package that was passed back in early February. It was an enhancement of the credit that was passed in 2008 that only awarded $7,500 to the home buyer and also had to be paid back over a 15 year period. The most recent tax credit was far superior since it could be taken immediately. The credit covers up to 10 percent of the cost of the home, or up to $8,000. To be eligible to use the credit, you must complete the purchase by December 1st of this year. Typically, that means you will have to have made an offer on the home by the beginning of November to allow enough time for the paperwork to process.

Sen. Johnny Isakson, Republican from Georgia, was the congressman who initially introduced the credit to Congress. He had initially proposed that the amount be $15,000 which is what he is calling for now. In addition to the increase, he is wanting the the tax credit to be available to all buyers, not just to those that have been out of the market for three years.

It’s not known yet what the stance of the Obama administration on the tax credit is:

Asked about whether the Obama administration would consider extending the credit, White House spokesman Robert Gibbs said the administration’s economic team was evaluating the impact on new home sales and would make a recommendation to the president, according to the Associated Press.

The tax credit has been expensive, but it has arguably been successful in helping the ailing real estate and construction industries survive in recent months. However, like other supposedly temporary tax credits, the First-Time Homebuyer Tax Credit may end up being called the Perennial Homebuyer Tax Credit.

There is no doubt that the tax credit has been a high cost to our already tapped out national budget, but it came at a time that was almost a life saver to our fluttering real estate market. It has estimated that the total cost of the program will be approximately $15 billion which is more than double than initially thought.

Don’t Snooze Too Long
If you are still in the market to buy a home, don’t bank that Congress will definitely extend the credit. Bottom line: If you are a first time home buyer and want to purchase a house, get moving before the $8,000 first time home buyer tax credit expires.”

Securities offered through LPL Financial, Member FINRA/SIPC
Article by Jeff Rose at goodfinancialcents.com

I want to go to here…

In Uncategorized on October 14, 2009 at 6:41 pm

I’m such a sucker for the 70’s. Especially when it comes to architecture and design.

ONLY 2 Months Left – GO Time!

In Uncategorized on October 1, 2009 at 8:16 pm

For First-Time Home Buyers – the 8k tax credit can be taken advantage of for only 2 more months, so, talk to a loan officer soon and give us a call. Check our FAQ page, too!
For Home Sellers – get that beautiful home of yours on the market, while buyers are scrambling to see it in the next two months. Give us a call – we have special rates on commissions during these times and we are both working over time, putting to use new techniques for making any home sellable and attractive to buyers.

8k tax credit faq’s

In Uncategorized on October 1, 2009 at 7:54 pm

Final score: $8,000 for homebuyers
First-time purchasers get a tax credit windfall if they buy before December.
NEW YORK (CNNMoney.com) — There’s a nice windfall for some homebuyers in the economic stimulus bill awaiting President Obama’s signature on Tuesday. First-time buyers can claim a credit worth $8,000 – or 10% of the home’s value, whichever is less – on their 2008 or 2009 taxes.
A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill – the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns – was less than that amount. But there has been a lot of confusion over this provision. Adam Billings of Knoxville, Tenn. wrote to CNNMoney.com asking:

“I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?”

The short answer? Yes, Billings would get back the $8,000 plus what he’d overpaid. The long answer? It depends. Here are three scenarios:

Scenario 1: Your final tax liability is normally $6,000. You’ve had taxes withheld from every paycheck and at the end of the year you’ve paid Uncle Sam $6,000. Since you’ve already paid him all you owe, you get the entire $8,000 tax credit as a refund check.

Scenario 2: Your final tax liability is $6,000, but you’ve overpaid by $1,000 through your payroll witholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.

Scenario 3: Your final tax liability is $6,000, but you’ve underpaid through your payroll witholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.

To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as “first time” buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.

Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)

Applying for the credit will be easy – or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.

Source: CNN.com