1st Time Home-Buyer Tax Credit-Updates and Changes

January 11th, 2010 mullinaxteam Posted in First-time home-buyer, Real Estate, Real Estate Information, Real Estate News, Real Estate Report, Tax, Tax Credit Comments Off on 1st Time Home-Buyer Tax Credit-Updates and Changes

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:

  Previous Provisions    

New Provisions
Effective Date January 1, 2009 November 7, 2009
Deadline Close before December 1, 2009
  • Contract signed before May 1, 2010, must close before July 1, 2010
  • Members of the uniformed services, foreign services, and intelligence employees who served an extended service of 90 days will have until April 30, 2011 and June 30, 2011.
  • First-Timers: maximum of $8,000 or 10% of sales price
  • Prior Owners: $0
  • First-Timers: Unchanged
  • Prior Owners: $6,500 if lived in prior home for at least 5 consecutive years of past 8 years
Income Limit
  • Individual: $75,000
  • Couple: $150,000
  • Individual: $125,000
  • Couple: $225,000
Other Restrictions Home must be primary residence for at least 3 years. If home is sold or buyer moves before 3 years, must re-pay full $8,000.
  • Buyer must be at least 18 years old and not classified as a dependent for tax purposes
  • Home must cost less than $800,000
  • Home must be primary residence for at least 3 years. If home is sold or buyer moves, before 3 years, must re-pay full amount of credit. Exception for military, foreign services, or intelligence with extended 90 days service overseas.
How to claim If purchased in 2009, by amending 2009 tax return or claiming on 2010 tax return If purchased in 2010, by amending 2010 tax return or claiming on 2011 tax return

Earlier this year, Keller Williams Research conducted a study of first time-buyers and here’s a few of the findings:


1.  The median age was 28, significantly down from where it was four years ago at 32.

2.  Location or neighborhood was the No. 1 “must-have” for 36% of buyers.

3.  25% saw 5 or less homes before writing an offer, the average buyer saw 10 homes.

4.  2 out of 5 first-time buyers purchased a distressed property.

5.  2 out of 3 sellers paid at least part of the buyer’s closing costs.

6.  1 in 4 had help from their family for the down payment.

If you’re interested in learning more about the new tax credit or about homes in your area, contact us to learn more.

Energy Savings Tax Credit

January 4th, 2010 mullinaxteam Posted in "Green" Living, Appliances, Energy savings, Finances, Home Care, Tax, Tax Credit 1 Comment »

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.


March 10th, 2009 mullinaxteam Posted in Financing Options, First-time home-buyer, Real Estate Tips and Advice, Tax, Tax Credit, Uncategorized Comments Off on EXPANDED TAX BREAKS FOR FIRST TIME HOMEBUYERS


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.



 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




February 19th, 2009 mullinaxteam Posted in Real Estate Tips and Advice, Tax Comments Off on GREAT NEWS FOR FIRST TIME HOME BUYERS!


The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.  The credit does not require repayment.  Most of the mechanics of the credit will be the same as under the 2008 rules:  the credit will be claimed on a tax return to reduce the purchaser’s income tax liability.  If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

As Modified in the American Recovery and Reinvestment Act

Major Modifications Italicized

February 2009 FEATURE





Amount of Credit

Lesser of 10 percent of cost of home or $7500

Maximum credit amount increased to $8000

Eligible Property

Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.

No change

All principal residences eligible.


Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.

No change

Purchasers will continue to receive refund for unused amount when tax return is filed.

Income Limit

Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).

No change

Same income limits continue to apply.

First-time Homebuyer Only

Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.

No change

Still available for first-time purchasers only. Three-year rule continues to apply.

Revenue Bond Financing

No credit allowed if home financed with state/local bond funding.

Purchasers who utilize revenue bond financing can use credit.


Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing.

No repayment for purchases on or after January 1, 2009 and before December 1, 2009


If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale.

If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.


July 1, 2009

(But note program changes for 2009)

December 1, 2009

Effective Date

Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year.

All revisions are effective as of January 1, 2009


For more info on the credit and the 2009 Stimulus legislation visit http://www.realtor.org/government_affairs/gapublic/american_recovery_reinvestment_act_home?lid=ronav0019 or consult your tax adviser.