$8,000 First-Time Homebuyer Tax Credit

For those of you that did not receive my e-mail regarding the $8,000 tax credit, I thought I should share this information through my blog:

The $8,000 tax credit is available to First-Time Home Buyers during the year 2009. This new tax credit does not need to be repaid! (Compared to the 2008 credit of $7,500, which was a loan paid back over a period of 15 years)… The buyer will receive the $8,000 as a refund on the 2009 tax return by attaching Form 5405. If you have any tax liability on your tax return, that amount will be subtracted from the $8,000 prior to the IRS sending you a check!

Only “First-Time Home Buyers” qualify for the new tax credit, available for purchases between January 1, 2009 and December 31, 2009 (determined by the closing date). To be eligible, the buyer must not have owned, nor spouse owned, a principal residence in the past three years. *** Ownership of a vacation home or rental property does not disqualify a buyer.

Additionally, income limitations apply … the buyer must have Adjusted Gross Income of $75,000 or less if filing as single, and $150,000 or less if filing a joint tax return. And the buyer is required to keep the home for a minimum of 3 years, or the credit must be paid back.

This is a FANTASTIC time to buy that first home! The market is saturated with foreclosures, and market values are very low ... it's the perfect time to enter the residential home market, knowing that real estate over time is generally a great investment. If you have any questions about the $8,000 tax credit, please feel free to contact me!

Remodeling

A question came up on another board in regards to remodeling, and whether or not certain projects would 'add value' to a property. My response was that in the current market, improvements to your home could make the difference between selling and NOT selling a home, or a home selling more quickly (or in a reasonable amount of time) ... you may not recover the 'costs' associated with those improvements, but your home will be a more desirable property to buyers. Kitchen and bathroom remodeling projects tend to have a higher cost recovery than others, and exterior projects (landscaping, siding, decks/patios/porches) are beneficial in adding 'curb appeal'.

Following are a couple of great articles in Realtor Magazine:

Remodeling Projects with the Highest Returns

2008 Remodeling Cost vs. Value Report

On a side note, I read a great article in the paper this morning about the 3/50 Project ... Pick 3 local (independently owned) businesses in your area that you would miss if they were gone, and stop in! Spend just $50 per month at independently owned businesses for the greatest impact ... for every $100 spend locally, $68 returns to the community through taxes, payroll, and other expenditures (versus only $43 if spend at a national chain). I LOVE this idea, and plan on making an effort to support local businesses! I encourage you to do so also!

Welcome!

In theory, I'll be updating this blog on a regular basis ... and hope to discuss tax issues related to real estate, as well as thoughts about both topics that might be of interest. It seems that every day I learn more and more as a CPA and Realtor!

Thank you for visiting, and welcome to my blog!

Check out the visual tour of my new listing:
http://www.1313monarch.com
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