1st Time Home Buyer Tax Credit Closing Deadline Extended

With 180,000 loans in lender’s pipelines that were at risk of not closing in time, the government has stepped in and approved a bill to extend the closing deadline from June 30,2010 to September 30, 2010.  For those home buyers who were on the fence, this should ensure enough time to close and still be eligible for the credit.

Last week we reported that the tax credit closing deadline for first-time home buyers had been extended from June 30 to Sept. 30.  However, that is not the case as the senate voted the bill down yesterday that would have allowed for this extension.  This means those hoping to secure the first-time home buyer tax credit must close on those properties by the original June 30 deadline.  This could definitely prove tough for those whose lenders are behind on closing these loans.

With the season of fresh growth on it’s way, now is the time to get started on your Spring cleaning.  For many it can be quite a job to go through closets, garages, junk drawers and those catch-all rooms.  The easy option is to just trash these things, but why not donate those items to someone who could use them?  Remember, one man’s junk is another man’s treasure!

Donating these items can not only give you a tax write-off, but it can also make a difference in the life of someone you may never meet.  Not to mention it will help give our ever-growing landfills a break.  This article gives some great ideas on where to donate specific items.  With the economy we live in today, now more than ever, we need to look out for each other and help out when we can.  Why not make a tedious task an act of giving for your family this Spring?!

First Time home Buyer Tax Credit Website

For those of you with questions about the first time home buyer tax credit, you’re not alone.  With so many changes and stipulations surrounding this credit, there are more and more confused potential home buyers and recent homeowners.  This website was created by Better Homes and Gardens Rand Realty to help you determine whether or not you may be eligible to apply for this credit.  They have even created a questioinnare that answers whether or not you are eligible and for how much.  We hope this will help answer your questions regarding this legislation!

http://www.homebuyertaxcredit.com/

As the deadline for the First-Time homebuyer Tax Credit crept closer, it became a clear priority on the Hill.  An extended and expanded home buyer tax credit is a part of a larger bill that also extends unemployment benefits.  This bill was signed by President Obama on Friday, November 6.

The bill essentially remains intact but has a handful of important changes:

Energy Saving Appliances and home improvements can give you a tax break!

You may have heard about the federal tax credits for energy star appliances.  Whether you’re looking to install a new toilet or upgrade your heating and air throughout your home, if you utilize energy saving products, it may give you a tax break.  There are several stipulations around the deductions that are based on the overall energy performance of the items you are changing.

For energy star appliances, visit www.energystar.gov to find out what appliances qualify.  For upgrades to your home, this new website www.houselogic.com has great information on the stipulations around replacing roofs, insulation, hot water heaters and other utilities in your home.  This site also explains some common tax deductions you can take for your home. 

Remember that getting a nice tax break is only one benefit to utilizing these government funded initiatives.  You will also be decreasing your utility bills and helping make our environment a better place for the future.

There is no doubt that the first time home buyer tax credit is a great thing but there are a few things to know before you assume that you qualify for the full $8,000.  The tax credit breaks down as follows:
Who qualifies? First time home buyers and people (or spouses) who have not owned a home for the previous 3 years.  You must purchase your home between January 1, 2009 and December 1, 2009.

• What qualifies for the first time home buyer’s tax credit? Only a primary house qualifies.  It does not matter if it is a single family home, duplex, townhome, condo, apartment or co-op, if it is a primary residence it will apply.

• What is the amount of the first time home buyer’s tax credit? $8,000 is the maximum amount of the credit.  There are 2 factors at play when it comes to getting the credit: The cost of the home and the income of the person or married couple purchasing the home.  The credit can be 10% of the closing price up to $8,000 or a person making $75,000 or less or a married couple making $150,000 or less are eligible for the full $8,000.

• Do you qualify for the first time home buyer’s tax credit if your income is higher? Yes and no.  If you make more than the $75,000/$150,000 limit you get less of a credit.  The maximum income is $95,000 for singles or $170,000 for couples.  If you make more than the maximum income you are not eligible for the tax credit.

The tax credit is a real boost for first time home buyers and does not have to be repaid.  If you qualify for the tax credit and have been considering purchasing a new home there could not be a better time to call a lender.  Low interest rates, low home values and the first time home buyer tax credit all add up to the right time to call Bonnie Mullinax your experienced Bartow County Realtor.

Resource and for more information: Realtor.org or call The Mullinax Team at 770.606.0054.

Making green improvements to your home can be good for the environment and your wallet

On February 17, President Obama signed into law the American Recovery and Reinvestment Tax Act of 2009.  This bill extends and modifies the tax credits for windows, doors, and skylights established in the Energy Policy Act of 2005. Going green can not only improve the environment but can also help the wallet.  If renovations are in store for your home consider making them energy efficient.  There are tax credits for 30% of energy efficient home improvements for amounts of up to $1,500 for improvements to existing homes.  Acceptable projects include:

•    Windows and Doors
•    Insulation
•    Roofs (Metal and Asphalt)
•    HVAC
•    Water Heaters (non-solar)
•    Biomass Stoves

There are also tax credits available for 30% of the project cost, no limit, for existing homes and new construction.  These projects include:

•    Geothermal Heat Pumps
•    Solar Panels
•    Solar Water Heaters
•    Small Wind Energy Systems
•    Fuel Cells

Reducing the carbon footprint for your home has never been more affordable or had such incentive.  Whether you want to change your windows or alter your home’s energy source, making changes to make a difference in our environment can help save you money.

For information on energy efficient tax credits click here or call The Mullinax Team at 770.606.0054.

The NEW (up to) $8000 Tax Credit is for purchases between January 1, 2009 and November 30, 2009.

Expanded Tax Break Available for 2009 First-Time Homebuyers Expanded Tax Break Available for 2009 First-Time Homebuyers IR-2009-14, Feb. 25, 2009 WASHINGTON – The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.

Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.

“For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit,” said IRS Commissioner Doug Shulman.

“This important change gives qualifying homebuyers cash they do not have to pay back.”

The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit, on IRS.gov. The revised form incorporates provisions from the American Recovery and Reinvestment Act of 2009.

The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, income limitations and repayment of the credit.

This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for

36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.

The IRS also alerted taxpayers that the new law does not affect people who purchased a home after April 8, 2008, and on or before Dec. 31, 2008. For these taxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains 10 percent of the purchase price, up to $7,500, or $3,750 for married individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year.

http://www.irs.gov/newsroom/article/0,,id=204672,00.html

 For more information on the tax break in the Bartow County area, contact our local Pine State Mortgage Lender, Steve Duvall or Rena Rogers at 770.382.4504 or visit the website at www.pinestate.com