Real Estate for Raleigh-Durham-Chapel Hill2008-11-22T23:56:29Zhttp://blog.chrischilds.com/atom.aspxQuick BlogcastSeller Tips #1Home Appealtag:blog.chrischilds.com,2008-10-24:164ce347-5689-484a-8d7f-796ed4fbaefcChris Childs2008-11-03T13:30:57Z2008-10-24T17:47:00Z$7500 tax credit follow uptag:blog.chrischilds.com,2008-10-06:90db139b-8cf5-4490-a3a9-6a6caa90f5a5Chris Childs2008-10-06T10:52:16Z2008-10-06T10:38:00Zof the highlights of this $7500 federal tax credit:
• The amount of the federal tax credit is for 10% of the cost of the home, up to a maximum credit of $7,500. In essence, this is an interest-free loan that enables consumers to receive a tax credit on a dollar-for-dollar basis on their personal income tax return in the calendar year following the year of closing on their home. They begin paying the tax credit back the year after that and make equal installments during the next 15 years. If the homeowner sells the home at any point during the 15-year payback period, then the remaining amount is recaptured, unless they sell the home at a loss, at which point the balance is forgiven.
e.g., If a home costs $65,000, the allowable credit would be $6,500. If a home costs $120,000, then the allowable credit would be $7,500.
• Eligibility is for first-time homebuyers only. In this case, a first-time homebuyer is defined as an individual who has not owned a primary home at any time during the past three years, but who may have done so previously. Although certain income limits do apply, the amount of the credit is the same for all taxpayers, married or single.
• Individuals, whose Form 1040 filing status is single (or head of household), are eligible for the tax credit if their income is no more than $75,000. Individuals who file a joint return may have no more than $150,000 in income.
• Individuals with incomes between $75,001 and 94,999 (single) or $150,001 and $169,999 (joint returns) are eligible for a partial tax credit. • Individuals with incomes greater than $95,000 (single) or $170,000 (joint return) are not eligible for this tax credit.
• The federal income credit can be claimed on one’s individual or joint tax return for the purchase of any single-family home between April 9, 2008 through July 1, 2009. Individuals should consult a professional tax advisor for exact tax calculations.
e.g., If an individual’s actual tax liability was $5,000, then after the tax credit is applied the purchaser would receive a total refund of $2,500. The refundable amount is the difference between the $7,500 tax credit and the amount of one’s tax liability.
e.g., If an individual’s actual tax refund was $2,000, then after the tax credit is applied the purchaser would receive a total refund of $9,500.
• This credit is required to be repaid without interest in equal installments of 6.67% of the total credit each year for 15 years beginning the year after the tax credit is claimed.
e.g., If a homebuyer claims the $7,500 credit in 2009 on their federal income tax return for a closing that occurred in 2008, then the credit is received in 2009, so repayment begins in 2010 with an annual repayment amount of approximately $500 a year.
]]>$7500 Tax Credit for 1st time home buyerstag:blog.chrischilds.com,2008-10-03:5026cf4b-66d3-4160-98b7-99960e6c1e68Chris Childs2008-10-03T16:15:51Z2008-10-03T16:15:51ZA new incentive for 1st time home buyers to purchase a home and if eligible they may be able to apply up to a $7500 towards a tax credit. This "credit" is a interest free loan that requires the buyer to repay the money over a 15 year time period or less. I will post more information on the process and please be sure to seek advice from your tax consultant for more details.]]>Why Service Matterstag:blog.chrischilds.com,2008-06-23:d6eb0fbd-8a93-437b-9e41-f117c2609185Chris Childs2008-06-23T10:37:06Z2008-06-23T10:28:00Z In today's information gateways, a Realtor can help you sort through the overwhelming amount of data. They can help you by asking the right questions about the property, analyzing the data available, developing the appropriate timeline, and assisting in providing information for related services, like mortgage lenders, closing attorneys, and reliable home inspectors.]]>More changes and tweakstag:blog.chrischilds.com,2008-06-20:a63b03e9-211e-479e-82cb-9c22bbaed2cdChris Childs2008-06-21T11:34:06Z2008-06-20T15:01:00Z I am adding real estate news tomorrow.