Wednesday, December 30, 2009
Friday, December 4, 2009
$6500 "Replacement Home" Tax Credit Clarification
Q: I'm already a homeowner. If I buy a replacement home after Nov. 6, 2009, to use as my principal residence, do I have to sell my home to qualify for the homebuyer tax credit?
A: If you meet all of the requirements for the credit, the law does not require you to sell or otherwise dispose of your current principal residence to qualify for a credit of up to $6,500 when you buy a replacement home to use as your principal residence. The requirements are that you must buy, or enter into a binding contract to buy, the replacement principal residence after Nov. 6, 2009, and on or before April 30, 2010, and close on the home by June 30, 2010. Additionally, you must have lived in the same principal residence for any five-consecutive-year period during the eight-year period that ended on the date the replacement home is purchased. For example, if you bought a home on Nov. 30, 2009, the eight-year period would run from Dec. 1, 2001, through Nov. 30, 2009. (11/17/09)
IRS.gov Newsroom Link
IRS.gov Newsroom Link
Monday, November 9, 2009
First Time Homebuyer Tax Credit Extension
Obama Signs Credit Extension for first-time homebuyers -- by Lewis Green
Recently, President Barack Obama signed legislation that will extend a tax credit for first time homebuyers into next year.
Through the tax credit, first time homebuyers who have a contract in place on a new home by April 30, 2010, are eligible for an $8,000 tax credit. Those buyers must close on their new home purchase by June 30 of that year. Also, members of the military who find themselves serving overseas are eligible for the credit until May, 2011.
Many experts in the housing market tied an increase to housing sales to the tax credit, which was slated to expire soon. In fact, home sales dropped 3.6 percent in September, with some saying that the coming expiration of the housing credit played a role in that decline.
"The rebound in the housing market was one of the big factors that contributed to the growth of the economy in the last quarter and brought hundreds of thousands of families into the housing market," Obama said. "We want to give even more families the chance to own their own home."
A smaller version of the credit has also been created for people who plan on buying a new home. A homeowner who has lived in their house for at least five years is entitled to a $6,500 credit if they buy a new primary residence.
There are a number of limitations on the tax credit. For example, the property people plan on purchases cannot be more than $800,000. How much people earn also plays a factor, though the bill does expand income thresholds for the credit. For individuals, the limit was expanded from $70,000 to $125,000, and for couples it was moved from $150,000 to $225,000.
Recently, President Barack Obama signed legislation that will extend a tax credit for first time homebuyers into next year.
Through the tax credit, first time homebuyers who have a contract in place on a new home by April 30, 2010, are eligible for an $8,000 tax credit. Those buyers must close on their new home purchase by June 30 of that year. Also, members of the military who find themselves serving overseas are eligible for the credit until May, 2011.
Many experts in the housing market tied an increase to housing sales to the tax credit, which was slated to expire soon. In fact, home sales dropped 3.6 percent in September, with some saying that the coming expiration of the housing credit played a role in that decline.
"The rebound in the housing market was one of the big factors that contributed to the growth of the economy in the last quarter and brought hundreds of thousands of families into the housing market," Obama said. "We want to give even more families the chance to own their own home."
A smaller version of the credit has also been created for people who plan on buying a new home. A homeowner who has lived in their house for at least five years is entitled to a $6,500 credit if they buy a new primary residence.
There are a number of limitations on the tax credit. For example, the property people plan on purchases cannot be more than $800,000. How much people earn also plays a factor, though the bill does expand income thresholds for the credit. For individuals, the limit was expanded from $70,000 to $125,000, and for couples it was moved from $150,000 to $225,000.
Thursday, July 16, 2009
History Center invites all To Day of Family Fun, Aug 29
Saturday, August 29, Come to the History Center for a Day of Family Fun! Time: 12:30-3:30
Featuring:
Featuring:
- Free Ice Cream Sundaes!! Complimen
ts of Purity Ice Cream, and special ‘guest appearance’ by Ithaca’s own Ice Cream Sundae Inventor Chester Platt sponsored by the Tompkins County Visitor’s Bureau! - Live Music by June Apple
- An Interactive Display on Preventing Pollution from the Cayuga Lake Watershed Network
- Have a chance to ‘meet’ some of Ithaca’s historic figures from the Living History Tours
- Scavenger Hunts and Prizes
- Family Games and Activities
- Enjoy a guided walking historical tour of downtown Ithaca
- Tour details: The tour is a 40 minute walk. Tours will embark at 2:45pm, 3pm, 3:15pm and 3:30pm. Special family day rates of $5 for adults (kids are free.)
Friday, July 10, 2009
7 Reasons to Own Your Home
1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.
2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.
6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.
Online resources: To calculate whether buying is the best financial option for you, use the “Buy vs. Rent” calculator at www.GinnieMae.gov.
2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.
6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.
Online resources: To calculate whether buying is the best financial option for you, use the “Buy vs. Rent” calculator at www.GinnieMae.gov.
How Big a Mortgage Can You Afford?
How Big of a Mortgage Can I Afford?
Not only does owning a home give you a haven for yourself and your family, it also makes great financial sense because of the tax benefits — which you can’t take advantage of when paying rent.
The following calculation assumes a 28 percent income tax bracket. If your bracket is higher, your savings will be, too. Based on your current rent, use this calculation to figure out how much mortgage you can afford.
Rent: _______ x 1.32 = Mortgage payment: _______
Because of tax deductions, you can make a mortgage payment — including taxes and insurance — that is approximately one-third larger than your current rent payment and end up with the same amount of income.
For more help, use Fannie Mae’s online mortgage calculators.
Not only does owning a home give you a haven for yourself and your family, it also makes great financial sense because of the tax benefits — which you can’t take advantage of when paying rent.
The following calculation assumes a 28 percent income tax bracket. If your bracket is higher, your savings will be, too. Based on your current rent, use this calculation to figure out how much mortgage you can afford.
Rent: _______ x 1.32 = Mortgage payment: _______
Because of tax deductions, you can make a mortgage payment — including taxes and insurance — that is approximately one-third larger than your current rent payment and end up with the same amount of income.
For more help, use Fannie Mae’s online mortgage calculators.
Thursday, July 2, 2009
The Six Most Aggrevating Strategies of Listing Agents
It's all about posturing and one-upmanship.
But why do people feel they must resort to such strategies. My opinion is that they don't work (although I believe agents who use these DO think they do, because of the ultimate outcome, which would have been the same either way.
Here they are-- the Six most annoying habits of Listing Agents -- At least in my book:
But why do people feel they must resort to such strategies. My opinion is that they don't work (although I believe agents who use these DO think they do, because of the ultimate outcome, which would have been the same either way.
Here they are-- the Six most annoying habits of Listing Agents -- At least in my book:
- Get all out of breath, making an argument in which the pace, tempo and intensity of their speech impairs their thinking so that they don't know when to stop.
- Say one thing on the phone then write something just a little different in the confirming Email.
- Push and threaten that their Seller is going to back out of the deal.
- Say, I just showed this property this afternoon and I expect these people to make an offer tomorrow."
- Say, in the middle of negotiations that the Seller is "not going to give the property away for anything under $ X . Nine months later the deal closes with another buyer at $X minus $50,000.
- Say "The Seller isn't really sure she wants to sell."
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