Posts Tagged ‘tax credit’
Is Solar Power Right for You?
If you dream of going off the grid… If you giggle at the thought of paying less than $500 a year for electricity…today’s solar power may be perfect for you.
Here are a Few Resources and Tips to Help You Decide
- Read Ed Begley Jr.’s Guide to Sustainable Living
- Watch the Planet Green channel
- Do a home energy audit at energystar.org or call your power company.
- Find Cash Back Offers. Tax incentives abound for energy savings. Too see what is offered in your area, check for incentives and rebates on a federal, state and local level.
- Check Tax Rebate and Credit websites dsireusa.org and greenmadesimple.com
Improvements in solar technology mean financial savings within 6 years, depending on your location and property. Check it out. Solar may be the perfect answer for your needs.
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Don’t Take Your Home Off the Market During the Holidays
I’m thinking Turkey. The leaves have fallen, lawn mowers are stored and furnaces are in use. It’s at this time of year that many of our customer’s ask… “Should We Take Our Home Off the Market During the Holidays?”
The answer is definitely ”NO”. There are a lot of reasons to keep your home listed right through the New Year. And, there’s a special timely reason this holiday season!!
- The First Time Buyers Tax Credit has been extended until April 30, 2010 AND it’s been expanded. Step Up Home Buyers, who make a lot of money, can also receive $6500 in Tax Credits until April. Big tax incentives mean that smart buyers will be house shopping vs mall shopping this holiday season.
- Interest Rates are at Record Lows. 30 year fixed rate mortgages are below 5 percent. But, with the dollar weak and falling, low rates may not be around for long. Serious home buyers are aware of the difference that even a small interest rate increase would make in their house payment. The combo of Tax Credits and Low Interest Rates create strong urgency among buyer’s. Smart seller’s spruce up their homes and play into the pressure.
- Holiday Shoppers are Serious Buyers. Trust me. Everyone of us loves the holidays. So, the people who are out looking for homes in November, December and January are SERIOUS Buyers. Do you really want to pull your house off the market when the most serious people are shopping?? Think about it and gear up!!
- Less Competition. Many sellers don’t read our blog. They foolishly pull their homes from the market during the holidays, and this year will be no exception. Less competition and MLS exposure could make the difference between For Sale and Sold, this Christmas.
- Houses are Pretty during the Holidays. Staging your home is easy during the holidays. The mood is festive. Holiday colors are warm and inviting. Candles, centerpieces and decorations touch the heart and convey a peaceful lifestyle. Light the candles, make a roaring fire, bake some goodies and turn on some relaxing holiday music. Buyer’s love to see a home decorated and looking special. Don’t let this once a year opportunity pass you by.
- Curb Appeal. If your landscape and lawn isn’t that great, breathe a sigh of relief that no one else’s is this time of year, either. Add seasonal color, a wreath, perhaps some decorations. Just keep it subtle and classy. No mowing, no weeding and trimming, and best of all snow covers all…
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Home Buyer Tax Credit Extended.
Great news for home buyers, sellers and owners, alike. The homebuyer tax credit has been expanded to include step up buyers, who have owned a home for 5 years. It also extends the tax credit through the end of 2010.
GREAT NEWS!
It appears that Senate Democrats have recognized the tremendous value of the First Time Homebuyers Tax Credit and odds are it will be renewed soon. At this time, it is believed that the credit will allow anyone purchasing a home, by April 30, 2010, to participate and receive the full credit available.
The credit will continue until the end of 2010, but the amount of tax credit will drop by 2 percent every 90 days. The graduated benefit should help the housing market recover into and through the 2010 summer selling season.
Here is the text of the story as reported in Bloomberg News today:
Senate Democrats on Board with Credit Extension
Senate Banking Committee Chairman Chris Dodd (D-Conn.) says Senate Democrats have agreed to extend the first-time home buyer tax credit. The latest version extends the program to home sales signed not closed by April 30. Purchasers would have another 60 days to close the sale. The credit will also be expanded to include so-called step-up buyers who have lived in their current home for at least five years.
The credit would be cut slightly to a $7,290 cap. Income eligibility for first-time home buyers would stay the same, but it would rise for step-up buyers to $125,000 for individuals and $250,000 for couples.
Source: Bloomberg News, Dawn Kopecki and Ryan Donmoyer (10/27/2009)
Extending Home Buyer Tax Credit. Pro’s and Con’s
Not surprisingly, real estate industry lobbiest are attempting a full court press as they make a final push for extension of the first-time buyer tax credit.
And, it’s little wonder. The IRS estimates that 1.4 million homebuyers have claimed the credit through August, and the Realtors Association estimates the credit was crucial in pushing 355,000 of those buyer’s off the fence.
If the real estate industry gets it’s way and the amendment passes, the $8000 tax credit would be extended to June 30th, 2010 and it would allow more taxpayers to qualify for the subsidy. The amendment would increase the income limit to $150,000 for a single filer and $300,000 for a couple, up from the current limit of 95,000 and $170,000, respectfully.
The Pro’s: Why Vote “Yea”
- Lenders are still in trouble, as more people default or fall behind on their mortgages. Experts predict an additional 1.5 million foreclosures in 2010, increasing supply and further eroding prices and demand.
- Dems and Rep like it. The proposal was introduced by a GA Republican, Johnny Isakson, and it is also supported by Democratic heavy-weights. House speaker Nancy Pelosi and Senate Majority Leader Harry Reid support the extension, President Obama hasn’t taken a position for either side.
- Still too Many Houses. Although the supply of existing homes on the market has fallen from 1-5 months down to 8.5 months, a healthy market has only 5-6 months supply of house.
- Unemployment is Rising. With national unemployment levels at 10 percent, and some states reporting a far higher number, extending the taxpayer subsidy of housing market would likely create and preserve jobs. In addition, people out of work usually means more loan deliquency, foreclosures and further downward pressure on pricing.
The Con’s: Why Vote “NAY”
- The Cost to the Taxpayers. The extension comes with a heavy price tag of $16.7 BILLION over 5 years.
- As bad as Sub-Prime. Opponents argue that the subsidy has artifically propped up the prices of inexpensive homes, targeted by first-time buyer’s, thereby creating another potential mini-bubble in affordable housing.
- Both Opponents and real estate industry admit that most people who claimed the $8000 deduction, would have purchased a home anyway due to historical low rates and steep price declines.
- Fraud. The IRS has identified over 100,000 cases of fraud involving the tax credit. On Thursday, the House Ways and Means Committee is scheduled to take a closer look.
- Did we mention the cost to taxpayers is $16.7 BILLION?
Yea or Nay??? We thank you for visiting InfoTube.net FREE homes for sale and rent website. The website provides free legal forms and contracts, marketing and sales tools, real estate advice, news and updates for buyer’s, sellers, agents and builders. We invite you to subscribe to our feed or leave a comment in the space below.
Did First Time Buyer Tax Credit Help Sellers?
The $8000 Tax Credit for first time home buyer’s (people who have not owned a home in the last 3 years) expires on November 30, 2009. With the expiration date drawing near, the Realtor and builder lobby groups are pushing lawmakers to extend the program for another 6 months. If they are successful, it will cost taxpayers of nearly $15 BILLION.
“Yea” or “Nay”??? Before we cast our vote, we decided to find out whether the tax incentive successful or not? Specifically, did it persuade people to jump into the market? Would it be a good investment for taxpayers going forward?
According to a poll conducted by Zillow, the tax credit was persuasive.
- 18 percent of home buyers said the tax credit was the main reason they pushed to buy a home before November 30, 2010.
- Based on the number of first time buyer’s in the marketplace, a 6 month extension could persuade another 335,000 (18 percent) buyers to buy a home of their own.
- If the first time buyer credit is extended, home sales would likely increase 5 percent. Without it, sales would be down as much as 2 percent.
- Only 31 percent of first time buyers said the credit had no influence on their decision to purchase.
- 69 percent of buyers said the tax credit was important in motivating them to buy a home this year.
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Bullish Signs for Housing Sales
Although all the news about real estate, housing and lending isn’t particularily bullish, there are some compelling new motivations for buying now. Rising interest rates, Inventory Decreases and the $8000 tax credit which expires December 1.
- Interest rates are soaring, as the dollar falls. Economists predict that the low rates we saw only a month ago, aren’t likely to return anytime soon. In April, 30 year fixed rate mortgages averaged 4.5 percent. Last week, rates hit 4.98 percent. And, this week, Bankrate.com is quoting 30 year fixed rates for prime borrowers at just over 5 percent. Note: An increase of only 1/2 percent in interest rates raises the mortgage payment for a $170,000 loan by $52/month, $624/year or $18,720/over the life of the loan.
- The deadline for qualifying for an $8000 tax credit is rapidly approaching. Although, the December 1st deadline may seem a long way off, in real estate terms it really isn’t. A lot of people are sitting on the sidelines, waiting to see if prices will drop another 1 or 2 percent over the next 6 months. Lenders are already warning us that when all those buyers rush into the market in August or September, the backlog in loan applications will mean a wait of 60-90 days to close an average loan. Note: Given that the average buyer in this market looks at over 30 homes, over a 3 month period, buyers who don’t want to miss the boat on their $8000 gift, should get serious now.
For those buyer’s hoping to time the market perfectly, we think their ship may be sailing by. Home inventories are dropping, prices are stabilizing, interest rate increases erase potential gains made by a further fall in prices and $8 grand is on the line, if the December 1 closing deadline can’t be met. Serious buyer’s should jump on board now, before they find out that the ship has sailed and they missed the boat!!
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Tax Perks and Tips for Homeowners and Buyers
Tax Perks of Homeownership
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100 percent of the mortgage interest you pay is tax deductible, which can add thousands of dollars to your bottom line each year. Click Here to FIND OUT HOW MUCH YOU CAN DEDUCT, if you own a home.
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Property taxes (real estate taxes) paid to state and local governments are 100 percent deductible on your federal income tax return.
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Up to $500,000 ($250,000 for singles) in profit is tax free when you sell your home.
2009 Housing Stimulus Increases Tax Savings of Ownership
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Deduct $8000 from Your Tax Bill. To qualify for the $8000 tax savings you must be a first-time (have not owned in the last 3 years)homebuyer earning less than $150,000 (married, filing jointly) per year. You must live in the home for 3 years after purchase.
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Go Green and Take a $1500 Tax Credit. The requirements for energy tax credits have eased. Take advantage of a $1500 Tax Credit for home improvements such as energy-efficient windows, doors, insulation, appliances and mechanical systems.
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Save 30 percent on Alternative Energy for your Home. Earn a 30 percent tax credit for each dollar spent on things like solar heating, heat pumps or fuel cells.
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Save up to $2 million on foreclosures and short sales. Taxpayers get a free pass on mortgage debt forgiveness until 2012. Filers can exclude up to $2 million in forgiven mortgage debt, where the home sold for less than the amount owed on the loan.
Owning a home certainly has its privileges, both emotional and financial. And, real estate is still the granddaddy of tax deductions. Buy a home and save thousands of dollars, or rent and pay thousands to Uncle Sam. If in doubt, ask your landlord why they own???
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$8000 Tax Credit for First Time Buyers
Home seller’s and real estate agent’s are waking up to the fact that nearly half of all buyer’s shopping for a home are first time home buyers.
Sellers should realize the timely opportunities that are available to this group, and they should be aware of all the benefits today’s first time home buyer will receive, in order to successfully do business with them.
One unique opportunity that provides immediate benefits for home sellers and first time buyers is an $8000 tax credit incentive from the US government. The purpose of the program is to encourage home sales and provide a much needed boost to the US economy.
Outline of the $8000 Tax Credit Program is as follows:
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The Tax Credit is available for First Time Home Buyers Only. (First Time Buyers are defined as anyone who has not owned real property in the past 3 years.)
- The home must be used as the buyer’s primary residence.
- The home must close January 1, 2009-December 1, 2009.
- The buyer claims the $8000 on their tax returns, which greatly reduces their tax liability.
- The $8000 does not need to be repaid, unless the buyer resells the home within 3 years of purchase.
The National Association of Realtors, who backed the plan, estimates that the tax credit will stimulate up to 300,000 home sales. The NAR also feels that the bill will help stablize home values and could possibly help some distressed seller’s avoid foreclosure.
To read more about working with first time buyers, click here.
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