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| Jackson, TN Real Estate Blog |
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Thursday, 31 December 2009
Are You Ready To Buy Now??????
Do You Have Income of Approximately $50,000 or Less?????
Call Clare Hickey & Company Regarding a Government Grant for your downpayment and Do Not forget You Can Still Qualify for Up to $8,000 Tax Credit.
CALL 731-664-2346 today to see if you qualify for the grant!
Thursday, 31 December 2009
HouseLogic: NAR's Consumer Web Site
What Is HouseLogic?
HouseLogic, NAR’s new consumer Web site, offers everything home owners need to increase, maintain and protect the value of their home. The site provides free information and tools to help home owners with home improvements, maintenance projects, taxes, finances, insurance, and even community involvement. HouseLogic helps consumers make confident decisions about what is often their largest investment – their home.
Visit HouseLogic today!
Wednesday, 30 December 2009
The following chart provides information:This is intended to provide an overview only - for specific information or individual concerns, please contact your lawyer, accountant and/or financial advisor. Information courtesy of http://www.realtor.org
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For First-Time Homebuyers
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For Current Qualifying Homeowners
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Amount of Credit
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$8,000 ($4,000) married filing separate)
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$6,500 ($3,250 married filing separate)
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Eligibility
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May not have had an interest in a principal residence for 3 years prior to purchase
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Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
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Termination of Credit
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Purchases after April 30, 2010
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Purchases after April 30, 2010
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Binding Contract Rule
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So long as a written binding contract to purchase is in effect on April 30, 2010 the purchaser will have until June 30, 2010 to close
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So long as a written binding contract to purchase is in effect on April 30, 2010 the purchaser will have until June 30, 2010 to close
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Income Limits
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$125,000 - Single
$225,000 - Married
Additional $20,000 Phase Out
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$125,000 - Single
$225,000 - Married
Additional $20,000 Phase Out
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Limitation on Cost of Home Purchased
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$800,000
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$800,000
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Purchase Made by a Dependent
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Ineligible
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Ineligible
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Additional Requirements
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Purchaser must attach documentation of purchase to tax return
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Purchaser must attach documentation of purchase to tax return
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Wednesday, 09 December 2009
Monday, 07 December 2009
NAR Frequently Asked Questions
Homebuyer Tax Credit Changes
National Association of REALTORS
500 New Jersey Avenue, NW, Washington DC, 20001
® Government Affairs Division
Here are some of the most frequently asked questions on the changes to the Homebuyer Tax Credit
Question: Existing homeowner credit: Must the new house cost more than the old house?
Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who
meet all eligibility requirements will qualify for the $6500 credit.
Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a
new home. I have lived in my current home for more than 5 consecutive years and
am within the new income limits. I will go to settlement on November 20. If
President Obama has signed the bill by the time I go to settlement, will I qualify for
the new $6500 tax credit?
Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment
(when the bill is signed). There is no reference to the date of contract for the new credit. The
provision looks solely to the date of purchase, which is generally the date of settlement.
Question: I am a firsttime
homebuyer but was not within the prior income limits at the time I
entered into my contract to purchase on October 30, 2009. I will be covered,
however, by the new income limits. If the new rules have been signed into law by the
time I go to settlement, will I be eligible for a credit?
Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill.
The income limit and other eligibility rules will look to your status as of the date of purchase,
which is the settlement date. So if the new rules have been signed when you go to settlement,
you should be eligible for the credit (or a portion of the credit if you're within the phaseout
range).
Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I
have found a home with a nonnegotiable
price of $825,000. Will I be able to use any
of the $6500 tax credit?
Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount
above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an
absolute ceiling.
Question: I owned my home for 10 years, but sold it two years ago year and have been renting
since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the
other eligibility tests?
Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you
will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000
and lived there until 2008 when he got a divorce. Whether John has been renting or bought in
the interim, he WOULD INDEED be eligible for the credit because he owned a home and
occupied it as his principal residence for 5 consecutive years out of the last 8 years. The
keyword here is "consecutive." As long as he lived in that house for 5 years straight what he
did since 3 years doesn't impact eligibility.
Question: I am an eligible firsttime
homebuyer. I entered into a contract to purchase on
November 1, 2009. Do I have to go to closing before December 1? How does the
extension date affect me?
Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as
if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30
(or July 1, worst case), the purchaser will be eligible for the credit.
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