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Many home buyers and sellers in central Ohio were hoping for a third extension to the popular home buyer tax credit program. According to the Ohio Association of Realtors (OAR) and National Association of Realtors (NAR), this appears very unlikely to happen.
Vicki Cox Golder, NAR President states “NAR has had extensive discussions with our congressional allies and concluded that an additional extension of the tax credit is unlikely. While lawmakers recognize that the tax credit helped stabilize the market, it appears that much of the benefit has been realized.”
So, time is running out, we are down to the last few weeks for home buyers to claim the $8,000 first time home buyer tax credit or the $6,500 move up buyer tax credit. You must have a found a home and have a binding sales contract by April 30th, 2010.
Review these links for more information on Tax Credit Programs:
Good luck out there!
Please feel free to contact me if you need help or have questions
Representing People, NOT Property!
- $8,000 tax credit for 1st time home buyers extended until April 30, 2010, must close by June 30th, 2010. Click HERE for more info.
- NEW-$6,500 tax credit for move up/repeat buyers. Existing home owners must have occupied their home for 5 years. Click HERE or contact me for more detailed info.
- $1,500 tax credit for energy efficiency updating for existing homes. Improvements must be completed by December 31, 2010. Most popular updates are: new furnace, central air, tankless water heaters, windows, doors, patio doors, water heaters, etc. Click HERE for completed list of eligible improvements and more info.
- State of Ohio Energy Efficient Appliance Rebate Program. Ohio residents can receive anywhere from $100 to $250 for EACH eligible appliance that they replace ($700 maximum). Program starts 1st quarter of 2010. This rebate program offers the perfect excuse to buy a new expensive front loading, super high-efficiency steam washer & dryer. Program ends when funds are depleted. Rebates will possibly only last 4-6 weeks. Important info: Ohio appliance rebate program, Ohio offers rebates for Energy efficient appliances, Rebate Program Outline
We hope this information can help save you some money. Please contact me if you have additional questions.
Disclaimer: Please consult a tax professional or accountant for additional details and eligibility questions regarding the federal tax credit programs. Thoroughly review all guideline requirements for energy-efficient home improvements or appliances before making the purchases.
Good luck out there.
Representing People, NOT Property!
The clock is ticking down for first time home buyers. You need to act NOW to make sure that you don’t miss out on the $8,000 from Uncle Sam.
Here is the fast, quick information you will need to see if you qualify for the $8,000 tax credit for first-time home buyers from The American Recovery and Reinvestment Act of 2009.
- You must be a first time home buyer, defined as not owning a home in the past 3 tax years.
- Tax credit amount is 10% of the sales price of the home up to a maximum of $8,000.
- There is NO price limit on the sales price of home.
- Maximum income to receive FULL tax credit is $75,000 for a single person, the limit for married couples is $150,000.
- You can receive a PARTIAL tax credit for income levels up to $95,000 for a single person and $170,000 for married couples.
- There is no payback or penalty as long as you stay in home as your principal residence for 3 years.
- You must CLOSE on your new home on or after January 1, 2009 or before December 1, 2009.
***IMPORTANT: Congress passes tax credit extension. Must have binding sales contract dated on or before April 30, 2010 and close on or before June 30th, 2010.
This is the quick & dirty information that you need right now for the $8,000 Tax credit. For more detailed information you can go HERE.
It is a great time to be a home buyer. This is the perfect time to by a home, especially 1st time home buyers, as long as your job is secure. If you feel safe in your current employment/job, then there are just so many positive reasons to now buy a home. Don’t miss the “gravy train!”
Really low mortgage interest rates
High inventory levels. Plenty of home options
Depressed, low prices (buy low, sell high)
Please contact me if you have more questions or need help.
IMPORTANT: I’m just trying to help the “average Joe home owner” to understand the new $8,000 tax credit. I have to put this” CYA” disclaimer in my post. Please consult a tax professional or accountant for more details and eligibility questions regarding the $8,000 1st time home owner tax credit. I’m not an accountant or tax professional.
Good luck out there!
This past Summer, Congress passed a $300 billion housing bill to rescue Freddie Mac and Fannie Mae and to help thousands of homeowners avert foreclosure.
The housing bill should definitely help the volatile housing and financing markets.
At the time, the housing bill was record breaking landmark legislation. But, Oh my how much has changed in 2008:
Largest US bank failure – Washington Mutual, $307 billion in assets.
Federal Reserve intervenes to save investment bank giant “Bear Stearns”. JP Morgan bank takes over Bear Stearns and receives $29 billion dollar loan from government.
IndyMac bank failure $32 billion in assets.
U.S. Government to take over failed AIG in $85 billion bailout.
In October, the new, largest government bailout in history to help US banks – $700 billion dollars.
There has been so much that has happened in the past 5-6 months that is easy to forget about one of the most beneficial aspects of the $300 billion bailout in July. The $7,500 tax credit is a great benefit for 1st time home buyers.
Here is everything you need to know:
- Purchase a home between April 9, 2008 and June 30, 2009.
- Must be a first time homeowner or haven’t owned a home in the last 3 years.
- New home purchase must be your principle residence.
- Maximum income requirements (Adjusted Gross Income) for full $7500 tax credit benefit is $75,000 for individuals and $150,000 for married couples.
- Partial tax credit benefit eligible for adjusted gross incomes up to $95,000 for individuals and $170,000 for married couples (see phase out charts below)
- $7,500 tax credit is basically an interest free loan from Uncle Sam.
- There is no application or approval process.
- If you are eligible, you simply claim the tax credit when you do your 2008 or 2009 taxes (IRS form 1040).
- Payment starts 2 years after you apply for the credit.
- Those qualifying for the full $7,500 tax credit will pay $500 once a year for 15 years.
- If you receive less than the full credit your payment schedule will be 6.67% per year over 15 years.
- Payment will be done via completing your federal tax return every year.
- You will owe nothing if you lose money on the sale of your home. Also, regardless of the sale price, you will never have to pay money “out of your pocket”. Here are 3 good examples that will better explain everything:
- Purchased a $200,000 home, sold 4 years later for $204,000. At time of sale you still owed $6,500 on tax credit. You would just have to pay $4,000. The remaining $2,500 would be forgiven.
- Purchased a $200,000 home, sold 4 years later for $199,999. At time of sale you still owed $6,500 on tax credit. You lost money on your home purchase. The entire remaining $6,500 balance would be forgiven.
- Purchased a $200,000 home, sold 4 years later for $225,000. At time of sale you still owed $6,500 on tax credit. You are responsible to pay the full $6,500 remaining balance.
- Are there restrictions on the location of the property? Yes, property must be located in the United States. Property outside the US is not eligible for the tax credit.
- Are there restrictions related to the financing of the property? Yes, if your financing is obtained via a mortgage revenue bond (example; a tax exempt bond related program from a state housing agency) then you will NOT be eligible for tax credit.
- Are there any other types of financing restrictions? No, all types of mortgage finance programs are eligible. For example; Conventional, FHA, VA, cash, sub-prime (boo hiss), non-conforming, etc. Even cash purchases qualify as long as purchaser meets all other eligibility requirements listed above.
- Are there minimum or maximum home purchase prices? No, maximum home purchase price for tax credit. Homes purchased under $75,000 will only receive 10% tax credit. For example, Buyer purchases a $50,000 condo. The maximum tax credit will be $5,000.
- What types of housing qualifies for tax credit? All types of home ownership qualifies. For example, condos, co-ops, existing single family, new builds, manufactured homes, town homes, duplexes even houseboats!
- What happens if I sell my home within 15 years? You are not reading my post. You are just “skimming” the article. Review the last bullet point in terms section above.
I think the $7,500 tax credit is a great benefit for the first time homeowner. If you meet eligibility requirements then you should really take advantage of this tax credit.
But, some home owners would say “What’s the big deal? I still need to pay pay back the $7,500!” I would tell you there are 2 very important things to consider:
- Basic economic principle called the “time value of money”. Money now is more valuable than money in the future. This principle is especially true now in this bad economy. Cash is King!. So, I guess my bachelors degree in Finance from the great Ohio State University was worthwhile.
- A tax credit is more valuable than a tax deduction. A credit affects the tax amount you owe or refund amount dollar for dollar. A tax deduction just reduces your adjusted income that is taxable.
IMPORTANT: I’m just trying to help the “average Joe home owner” understand the $7,500 tax credit. I have to put this CYA disclaimer in my post. Please consult a tax professional for more details and eligibility questions regarding the $7,500 1st time home owner tax credit. I’m not an accountant or tax professional.
Good luck out there
Franklin County has a great automated monthly prepay system for paying your real estate taxes that will pay you interest. The Franklin County Treasurer will pay the “average Joe” home owner the same interest rate that the Treasurer earns on its multi-million dollar portfolio. This is really a groundbreaking achievement for the Franklin County Treasurer’s office. The Treasurer sought and obtained a change in state law that allowed them to pay interest on monthly tax payments by home owners. Banks are still NOT allowed to pay interest on escrow accounts that collect property tax payments.
The interest rate that you can earn from the Treasurer’s office will be a better rate than most short-term bank accounts (checking, savings or money market accounts). For example, in 2007, the Treasurer’s interest rate fluctuated between 3.5% – 5.5%. Last year, I had a so called “high yield money market account” with an investment company that only earned between 1.75% – 2.25%. I think the Treasurer’s new monthly prepay system for real estate taxes that also pays interest is a first-rate service. Many homeowners in Franklin County are not even aware of this service.
A Franklin County home owner could possibly earn a couple hundred dollars a year. For example, a $265,000 home in Franklin County with yearly real estate taxes of $5,000 a year would have approximately earned $200 – $220 in an interest credit for 2007. The interest that you earn will be credited back against your real estate taxes, to LOWER your taxes! To get more info, you can visit the Franklin County Treasurer web site. The process is very simple and easy to set up. You just have to fill out one simple form.
If you are currently escrowing your real estate taxes with your lender then you will need to check with your lender to see if you are eligible to stop the escrow of real estate taxes. Most lenders will allow you to stop escrowing for real estate taxes if you have 20% – 30% equity. But, every bank has different policies and procedures, so before you do anything make sure you first check with your mortgage lender. You want to make sure you are eligible and there are no fees or costs involved to stop escrowing for your real estate taxes.
As of right now, Franklin County is the only local county in central Ohio that offers this great service. If you have questions, you can contact The Treasurer’s office for more information (614) 462-7515.
I think this is a wonderful service by our Treasurer’s office. A great benefit for being a home owner in Franklin County. You have the “worry free” convenience of automatic monthly payments of your real estate taxes that also pays you a great short term interest rate that you probably can’t get at any bank. And best of all, the Treasurer’s program is FREE. There is no fee or set up charge to join the program.
Don’t let the “Tax Man” shake you down! Click here for other possible ways to reduce your property taxes and/or save some “greenbacks”!
It has been a rough year for the real estate market & mortgage industry. But this week there was some good news, the US Congress extended legislation that makes mortgage insurance payments tax deductible until 2010. This legislation is one of the “bright spots” that will really help new and existing homebuyers for the next three years. Deducting the cost of mortgage insurance tax returns is expected to SAVE eligible borrowers $200 – $400 a year. The tax legislation, originally approved in December 2006, is basically the same expect for the three year extension. Borrowers whose annual adjusted gross income is $100,000 or less can fully deduct their mortgage insurance premiums from their 2007 – 2010 tax returns for homes purchased or refinanced during those time frames. Borrowers with incomes between $100,000 and $109,000 are eligible for a reduced tax break under the law. You can contact me if you further questions.
Below are some great links and a video that really help explain & understand mortgage insurance (MI) and last year’s tax legislation.
News Story – One Step Closer To The American Dream!
The Energy Policy Act of 2005 offers generous energy tax credits to consumers and businesses that purchase fuel efficient cars and/or energy efficient items for their home. Homeowners can receive a tax credit up to $500. Homeowners that purchase and install certain energy efficient products for their home such as; windows, exterior doors, heating and cooling systems, water heaters, storm doors, insulation, etc. (see chart for more information) prior to the end of the year will be eligible for the tax credits. The energy tax credit program is scheduled to end December 31, 2007. So HURRY up and ACT now! A tax credit is more beneficial than a tax deduction. A tax credit reduces your actual tax amount due “dollar for dollar”. A tax credit can provide substantial savings to the homeowner. Click here for more information about tax credits from the Internal Revenue Service (IRS). Good luck and stop procrastinating. Uncle Sam wants to give you money for going GREEN!
Another great, informative web site to check out is the Energy Star Program.
In early August, Governor Ted Strickland signed a new, expanded Homestead Exemption Act that will provide tax savings (money!!!) to qualified senior citizens and disabled Ohioans. The Homestead Exemption credit has been in effect for years. But, in the past there were very restrictive income requirements to qualify for the credit.
The BIG NEWS now is that the new Homestead Exemption has NO income qualifications. If you are 65 years or older and a homeowner in the State of Ohio then you can reduce your taxes and save money just by filling out a form (Franklin County) and sending it in to your local county auditor.
IMPORTANT; completed form must be received by your county auditor by no later than October 1st, 2007. Please, you don’t think our government would give us anything free or make it easy. Good news is that the form is very simple to fill out. So don’t delay.
For example, if you have a home with a market value of $100,000, you would get billed as if your house was worth $75,000. The average savings to you would be $400.
Don’t fret if you don’t qualify for the new credit, just contact your parents, grandparents and other family members that might qualify for the credit. Your family members will be so happy that you saved them money that they will put you back in their will. Voila, you are in the money!
You can follow the links in this post for more information. Please contact your local county auditor for more information on eligibility and tax savings.