Today is Veterans Day
I salute every single person whom is and has served for our country. Today is your day. The United States of America is who we are because of you brave men and women
First Time Homebuyer Tax Credit Extended Into 2010!
Plus...A New Tax Credit for Certain Existing Home Owners!
It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.
In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.
So Who Gets What?
The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.
Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Deadlines
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased.
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.
First-Time Homebuyer Tax Credit – Frequently Asked Questions
Here are answers to some commonly asked questions about the tax credit.
What is a tax credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.
What is the tax credit for first-time homebuyers (FTHBs)?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.
Who is eligible for the FTHB tax credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.
As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.
How do I claim the credit?
For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).
Can you claim the tax credit in advance of purchasing a property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.
Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.
Are there other restrictions to taking the credit?
Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.
* You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
* You do not use the home as your principal residence.
* You sell your home before the end of the year.
* You are a nonresident alien.
* You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
* Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
* You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.
Can you buy a home from a step-relative and be eligible for the credit?
Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.
Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?
Yes. Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?
No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA
Forwarded by email from: Chad Storey, Asset Realty Group, http://www.assetrealtygroup.com/Contact/
Why Why Why.........
Why are Big Companies slow to Jump on The Social Networking Band Wagon. This is very frustrating for it's Self-Employed Employee's. Someday we will all look back and say," Remember when it was against my companies policy to use Social Networking. Now it's to late to join. All my friends already have joined Networks that are in my field, GAME OVER. Good news though next week I have a Job Interview with McDonalds."
Social Networking is in it's PRIME. People are starting to accept it as second nature. Posting pics of activities and writing posts about what we're doing is the new thing. Why is it so wrong to have to do this.
Yeah there is some responsibilty that needs to be done on the posters side. But over all you don't want your past friends seeing you act like a ass anyway so don't post that stuff.
We are in a market that is built on Referral Biz. And Social Networking is a tool to get new biz. The companies need to accept that and allow us to use this avenue to get more biz.
Thanks for your time
In 2008 there were 6 bailouts that included; Citigroup, Troubled Asset Relief Program, Auto Industry, American International Group (A.I.G.), Fannie Mae / Freddie Mac and Bear Stearns with a total of US dollars reaching $1,615 BILLION (a). Where is that money coming from?
1 out of every 200 homes will be foreclosed on. 250,000 new families go into foreclosure every three months. (b)
Now, in 2009 BOA gets a 142.2 billion dollar bailout. (b)
Who’s to BLAME, you, me, Sub-prime, borrowers, banks? Who cares. I voted for OBAMA. Not because he’s the first minority President or I liked his health care reform. I voted CHANGE. We can argue what has he done since he became President or what he has failed at. What’s the point.
CHANGE, Lets quit blaming everybody and quit asking, “Where’s my Bailout” Look if you were in the Real Estate Market in the last 5 years you had a part in this. Quit pointing fingers. It’s time to CHANGE and start being more responsible, ethical, and conscious of what’s going on in your business.
Times are changing in a drastic way. Banks are tightening their programs. Appraisers are forced to obey many new rules. REALTORS® are getting massive low ball offers on their listed properties. It’s not a happy time.
Is this a negative? No, this is making us more responsible, ethical, and conscious. Borrowers are finally qualifying for homes they can afford. Lenders are lending more responsibly. Appraisers are giving actual value (yeah, it is being valued low because of all the foreclosures).
CHANGE………
“You've been drafted into a war you didn't start, ... Focus on your customers and lead your people as though their lives depended on your success.” Warren Buffet
Stay POSITIVE. Your community needs you in these times. Your community is begging for knowledge and advice. Stay with them. The people and businesses still around after this is over will be the only ones left. Think about that……. Where is your competition? It has reduced in massive size, hasn’t it.
Give proper expectations from the beginning to your clients. Educate them in the times we are in and the times that we can look forward to.
Thanks for your time and comments..
Sources:
(a) http://www.propublica.org/special/government-bailouts
(b) http://www.fdic.gov/about/comein/files/foreclosure_statistics.pdf
Everybody is always asking, "Why should I be on Twitter?".
Our answer to that is, "Why should you not be on Twitter?".
BEFORE I START I WOULD LIKE TO ASK YOU TO PLEASE TAKE ONE THING AWAY FROM THIS BLOG AT-LEAST. THEN TO PLEASE LEAVE ONE THING. IT COULD BE SOME
ADVISE,
KNOWLEDGE
OR JUST ANYTHING YOU THINK THAT COULD BE VALUABLE
Last week I (Bob) met J.T. and Brooke from Netco Title for a Twappyhour (Happyhour) to learn about Twitter. J.T. doesn't use Twitter for business at all. She uses it for her own personal social networking.
Since then I haven't followed or even been able to find her for that matter on Twitter. From what I understand even if I did find her the possibility of her accepting my follow or even following me back is slim to nun. I'll explain later....
With that background on J.T. I will tell you a little more: She has over 1,000 Tweeple following her, she gets over 25 Direct Messages a day (not counting, once she makes her status relevant to the Twublic and she is bombarded by Direct Messages instantaneously), she has to count the clock hours on a daily basis to make sure she is Tweeting in the right Time Zone, she goes/hosts Tweet-ups (flying all over the States to meet Tweople and having them Fly here), she has made businesses strive in sales with her Tweets (I'll explain later), she has created her own Hashtags within her groups (her Tweeps have their own language)
Ok so your still reading....
For a Whim I had her grade my PROFILE and TWEETS. She instantly said, "BLAHHHHHHHHH.., you would not be a good person to follow on Twitter!". "WHAT", I said, " I give great relevant information about RealEstate/Mortgage News in my Tweets". From what I understood I was not being personable enough. She explaines a 1:15 Ratio. For every 15 Tweets I write their should be 1 Tweet about RealEstate/Mortgage News. People follow people they can conect with, she said. If they wanted the News they'd watch it on TV or Google it. If they want to see property they'll search it. They don't need to know all your listings... this was a big mistake by Real Estate Agents, she added.
Family..... On Twitter, she has a Twuband (she's the Twife), Twons and Twaughters. She treats her Tweeple like they are family. She can scroll through her list of Tweeple and tell you what part of the country they are from, what age they are, what they do for a living and what she finds fascinating about them.
Did I mention that she gets 10-15 new people following her a day. Out of them, usually only one of them makes the cut to be in her sphere of influence. CUT you say? Yeah she has a STRINGENT POLICY on who she allows to Follow her and who she Follows. She:
Then throws down the gavel and either opens the gate or shuts it down per person. She said this does take a lot of time but it's worth it to her she said. She's constantly going through her lists and cutting people out.
Strive in Sales
How you ask..... It's simple she mentions them in her tweets. She told me about a purse maker in some state that noticed her sales booming in the same month that J.T. mentioned her business. The purse maker Direct Messaged J.T and asked, "What made you promote my business?". J.T.'s simple answer was, "I LOVE your purses. I've bought one for my daughter and sent one to California for my Sister."
Put your tongue back in your mouth reader.....
What we've learned from Twitter so far!
TIPS
Our TEAM BIO
We do #Mortgage out of #Seattle, we are Honest & Straight Forward. We do #Homeloans in 50 States and work with quality #RE Agents and #Builders
Your BIO
Keep it personable honest and use #Hashtags to explain yourself... See my Personal Bio
My Personal BIO
I love my #daughter, #mlb, #music. I'm spur of the moment. I do #RE business in #Seattle. Second love is #Mariners and #Huskies
Thanks for reading!
Please check out our other Social Networks!
At least Join our Fan Page on Facebook
Yours Truely,
Bob Drawson
