Obscure Facts about the Home Buyer Tax Credit

I certainly learned a few things reading this fascinating article.  Thought you might also benefit from it.  Especially if you are considering purchasing a multifamily residence...

From:  www.brokeragentsocial.com

Published on Tuesday, November 17, 2009, 8:41 AM Last Update: 2 day(s) ago by Karen Deis

Category: All Articles » Economy and Politics » Housing Sector

The IRS gets the final say when it comes to who gets to claim the homebuyer tax credit, who does not, and under what circumstances.

They have made a feeble attempt to update some of the FAQs posted on their websitehttp://www.irs.gov/newsroom/article/0,,id=206291,00.html but if it's anything like the last extension, it will take them a while to update their FAQ page. 

However, there are some little-known "interpretations" that most loan officers, real estate agents and even tax advisors dont know about. 

1. When a FTHB buys a 2-4-family home, and occupies one of the units as their personal residence, they are only allowed to claim 10% (or $8000 max) of the unit they OCCUPY--not the entire sales price.  Example:  If the FTHB bought a duplex for $120,000 and the units are identical, the "cost basis" is $60,000 and the tax credit they can claim would be $6,000.

2. Income limits are based on ADJUSTED GROSS INCOME.

3.  Income CAN Exceed $125,000 (single) and $225,000 (married) by up to $20,000 and FHTB & Long-term Residences can still get a partial tax credit based upon a "MAGI formula" created by the IRS.

4. New Construction - the "date of purchase" is considered the "date" the FTHB OCCUPIES the property--not the closing date or the start-or-construction date.

5. Homes sold on "Land Contract or Contract for Deed" to a FTHB can QUALIFY for a tax credit if they meet 7 tests listed on the FAQs.

6. Tax credit is not available for FTHB in US Territories--only the 50 states.

Happy Halloween!

Tomorrow is the big day where thousands of kids (and their parents) will be going door to door (and HOUSE to HOUSE) looking for treats.

If your home is currently on the market, take advantage of the extra traffic by handing out property-information brochures (with candy!) and/or your Realtor's card.

And if you are out with your kids trick-or-treating tomorrow night and see a home for sale that you like, be sure to give me a call so I can arrange a private showing for you. If you're tired of your home's "tricks," TREAT yourself to a new home for Christmas!  :-)

Meanwhile, check out NPR's great article, Three Hauntingly Unforgettable Literary Houses, by Laura Miller.

Hope you and your family have a DELIGHTFUL and SAFE Halloween!

Fall Home Maintenance Tips!

The forecast is calling for a beautiful week and weekend here in the Kansas City area.  So it will be the perfect time to get out there and do some fall home maintenance that will keep your house in good shape through the winter.  Check out this video for some excellent pointers:

Fall into Home Maintenance!

With the fall and winter months upon us, now is the time to do some routine maintenance around your home to prepare for the changing weather ahead. Taking the time to do some work now may save on some major expenses later. Some of these tasks can be performed by you, and some may need to be done by a professional.

Outside your home

1. Clear debris out of window wells, gutters, downspouts, and storm drains.
2. Remove garden hoses from spouts. Drain and store for the winter. Wrap spouts in insulation.
3. Drain in-ground sprinkler systems.
4. Check windows, doors, and siding for holes and cracks. Caulk as necessary.
5. Check weather stripping on windows and doors for fit and condition. Replace as necessary.
6. Inspect all soffit vents and other venting systems to make sure they're clear of debris.
7. Check painted surfaces for paint failure, water damage, or mildew. Repair or repaint if needed. 
8. Check caulking where two different materials meet, where wood siding joins the foundation wall, at inside corners, and where the window and door trim meets the siding.
9. Check for broken or cracked glass and damaged screens or storm windows. Check for loose putty around glass panes. Repair glass if necessary.
10. Insulate outdoor faucets, pipes in unheated garages, and pipes in crawl spaces with materials such as rags or newspapers.

Read more

Inside your Home:

1. Have a heating professional check your heating system every year. Replace your furnace filter.
2. Woodburning stove connector pipes and chimneys should be inspected by a certified chimney sweep at least annually.
3. Make sure you have proper insulation in both your attic and basement. While checking your insulation, if you see any dark, dirty spots, it may indicate you have air leaks coming into your home.
4. Remove hair from drains in sinks, tubs, and showers.
5. Test all smoke alarms. Replace batteries as necessary.
6. Check your home around windows and doors for air leaks. An easy way to check for leaks is to move a lighter around the window or door frame and see if the flame moves with a breeze. If you find a leak, you can caulk it or you may have to replace the wood frame. Repairing these leaks can save you money on your energy bill during the cold months.
7. Check for water leaks on the ceiling. Repair if needed. 
8. Make sure there are working nightlights at the top and bottom of all stairs.
9. Protect your home from frozen pipes. How to do this.
10. Test your emergency generator.

Read more
To Print Fall Home Maintenance Checklist Click Here

Agent Open House & Luncheon Tomorrow

Everyone is invited to 129 Shoreline Drive in the desirable Lake of Louisburg subdivision tomorrow to view this beautiful home:




Tuesday, September 29th
11am-1pm

Home Sales Surge!

wanted to share this great article from NPR...

Home Sales Surge More Than 7 Percent In July
by THE ASSOCIATED PRESS

August 21, 2009

The U.S. housing market is rebounding quicker than expected, with home resales in July posting the largest monthly increase in at least 10 years as first-time buyers rushed to take advantage of a tax credit that expires this fall.

The National Association of Realtors said Friday that home sales rose 7.2 percent to a seasonally adjusted annual rate of 5.24 million in July, from a pace of 4.89 million in June. It was the fourth-straight monthly increase and the highest level of sales since August 2007.

Sales had been expected to rise to an annual pace of 5 million, according to economists surveyed by Thomson Reuters.

"The housing market, with today's strong rise in sales, has decisively turned for the better," said Lawrence Yun, the trade group's chief economist.

Sales of foreclosures and other distressed properties made up about a third of all transactions last month, down from nearly half earlier this year. In places like San Diego and Orlando, buyers are snapping up foreclosed properties at deep discounts, and real estate agents are pressing banks to release more foreclosures onto the market.

Those sales helped drag down the median sales price by 15 percent to $178,400.

First-time buyers must complete their sales transactions by the end of November to take advantage of a tax credit of 10 percent of the purchase price, up to $8,000. The real estate industry is lobbying Congress to get the credit extended.

"It would be unfortunate to see the momentum halted," Yun said.

The inventory of unsold homes on the market rose to 4.1 million, from 3.8 million a month earlier. That's a 9.4-month supply at the current sales pace, unchanged from June

Green Your Home