Back in 2008, when the housing market was in even deeper trouble than it is in now, Congress passed the Housing and Economic Recovery Act to help move a glut of homes off the market. One of the key provisions was a tax credit for first-time homebuyers. That provision would be extended (twice) – and getting in early would have been a mistake.
If you claimed a federal income tax credit for a 2008 home purchase, you’ll probably have to pay it back over 15 years, starting with your 2010 Form 1040 (due next April). In contrast, if you claimed a credit for a 2009 or 2010 purchase, you probably won’t have to pay it back. (Blame Congress’s patchwork legislating.)
It gets much more complicated, so please click the following link to get more information.
http://www.smartmoney.com/personal-finance/taxes/do-you-have-to-repay-your-homebuyer-credit/
~ Barry Ripp
Many small businesses that provide health insurance coverage to their employees now qualify for a special tax credit, according to the Internal Revenue Service (IRS). Included in the health care reform legislation, the credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they’re currently offering. The credit is available to small employers that pay at least half the cost of single coverage for their employees.
For example; small employers are considered to have fewer than 25 full-time equivalent (FTE) employees paying wages averaging less than $50,000 per employee per year. However, because the eligibility formula is based in part on the number of FTEs, not the number of employees, many businesses will qualify even if they employ more than 25 individual workers.
The maximum credit is 35 percent of premiums paid in 2010 by eligible small business employers. Eligible small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they file in 2011. For tax-exempt employers, the IRS will provide further information on how to claim the credit.
On last Monday, April 5, banks nationwide began offering the Home Affordable Foreclosure Alternatives Program (HAFA). This new federal program will try to help homeowners avoid foreclosure by offering incentives to lenders that offer a short sale or deed-in-lieu of foreclosure.
Earlier this week, the National Association of Realtors (NAR) reported some lenders and loan services have been slow to implement the program or are unaware of its availability.
NAR has prepared resources to help REALTORS® answer questions about HAFA. Their new short sale Web page includes HAFA forms, breaking news and Fannie Mae and Freddie Mac real estate commission policies.
Call your Realtor today for more info, or contact me and I will be happy to forward you some information.
~ Barry Ripp emailto: barry@barryripp.com
www.barryripp.com 510-794-7690
Governor Proposes $10K home buyer Tax Credit: During his final “state of the State” speech on Wednesday Jan. 6, Governor Schwarzenegger proposed a state income tax credit of $10,000 for first-time home buyers. The proposal would expand the tax credit for those purchasing newly constructed homes to include the purchase of existing homes by first-time home buyers.
For more information, contact me.
~ Barry
Here is some information on the real estate market. In my opinion, if you’re ready to buy a home, start looking now. There will likely be more inventory to chose from in the spring, but by looking now, you’ll be ready to make that final decision when the right house comes along.
Recent good news about the housing market has many home buyers wondering whether now is a good time to buy. For example, home sales activity increased 9.4 percent nationally in September, a 26 percent increase from a low point in January, according to the National Association of Realtors.
The $8,000 first-time buyer tax credit has stimulated the market, and it has been extended. A credit of up to $6,500 is now available to repeat home buyers who qualify.
Many buyers are having difficulty finding a home to buy. The inventory of good listings on the market is low in many areas because prospective sellers who don’t have to sell now are waiting for a better market. To aggravate the situation, many sellers who need to sell now often take their home off the market after Thanksgiving and will bring it back on the market next year.
Buyers may find there’s very little on the market to choose from for the next several months. However, they may also find that some buyers will drop out of the market over the holiday season, leaving less competition for the listings that are on the market during this period.
~ Barry Ripp
Information provided by C.A.R and used with permission.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/12/06/REAI1ARGC5.DTL&type=realestate#ixzz0ZnrVz7Rf
Great news coming regarding the home buyer tax credit. The Senate has now agreed to extend the tax credit. The bill must be voted on and then go through the House of Representatives next. But most of us are certain it will pass before the current deadline.
As you can imagine, many buyers are looking forward to that tax credit, and many are rushing to make their home purchase before the current deadline. It has definitely helped our real estate market. But I truly feel we are at the bottom of this real estate cycle right now. Home prices should stay flat for a while, 18 months to 2 years, before we see significant increases.
For more information, or your comments, please respond.
~ Barry Ripp
Selling real estate since 1985
Back in 2008, when the housing market was in even deeper trouble than it is in now, Congress passed the Housing and Economic Recovery Act to help move a glut of homes off the market. One of the key provisions was a tax credit for first-time homebuyers. That provision would be extended (twice) – and getting in early would have been a mistake.