Tax Credit Deadline for Home Buyers Extended

The deadline for the federal tax credit to first time home buyers has been extended.  The federal government has also included an expansion for prospective buyers that already own a home.
The federal government has extended the $8,000 tax credit to new home buyers, and those who have not owned a home in the last three years, when they sign a contract to buy a home before April 30, 2010.  Congress also added a $6,500 tax incentive to those buyers who currently own a home and have lived there for the last five years.

Claudia webb RE/MAX Allegiance
Northern Virginia Real Estate

Going Green? Ten Tax Break for 2010

From Urban Trekker:

Looking to fix up your house? Here are the 10 tax breaks for going green,
via Forbes.

1. If you fix up your house. $1,500 off your tax bill – a 30% credit for the first $5,000 you spend in 2009 or 2010 for improvements to your house energy efficiency. (for further reading: Energy Efficiency Home and Vehicle Tax Credits)

2. Buy a new refrigerator. States are rolling out $300 million worth of rebates for home owners who replaced their clunker apps with new energy-efficient models.(check out Department of Energy approved Energy Efficiency Rebates)

3. Get hot water from the sun. Solar hot water system to heat your shower or radiators (not hot tub or pool) qualify for a 30% federal credit with no dollar cap.

4. Install a solar energy system. Uncle Sam will give you a tax credit equal to 30% of the price of a solar system you install to generate electricity in your home. For a $60,000 system, that’s a whopping $18,000 off your taxes.

5. Take the bus. Bus, train, subway, and van-pool commuters can now get equal tax benefits with those who drive solo to work an pay to park. (up to pre-tax $230 for employers sponsor plans).

6. Buy a Ford hybrid. Taxpayers stuck paying the AMT can finally claim the credit for hybrid cars purchased in 2009 or 2010, but only if they buy Ford motor hybrids. (FYI: Honda and Toyota no longer qualify). Check out Alliance to Save Energy for Vehicle Tax Credits for more info.

7. Plug In a Chevy Volt… slated later for showrooms in November with projected price of $40,000, qualifies for federal tax credit of $7,500. Nissan Leaf coming out in December, should also qualify for the credit.

8. Bike to work. A new law lets your employer reimburse you $20 a month for bicyle commuting as tax-free fringe benefits. Can’t take both with train, it’s one of the other.

9. Dig for heat. Uncle Sam will give you a tax credit for 30% of the cost of geothermal heat pump system that feeds off the warmth in the ground to heat your home.

10. Put a windmill in your yard. A basic residential windmill runs $40,000, but you can get a federal tax credit equal to a full 30% of your windmill cost.More on tax tips “How to Save Money on Going Green” and watch video on ‘Tax Tips for 2010.’

For further reading you can check out few sites:
Alliance to Save Energy: Energy Efficiency Home and Vehicle Tax Credits
Energy Savers Rebates, Tax Credits, Financing: Approved Energy Efficient Appliance Rebates
Virginia Energy Efficient Appliance Rebate Program
Maryland: Residential Incentives and FY 2010 Comprehensive Program Guide
Green DC: Energy Star Appliance Rebates
DSIRE: Database of State Incentives for Renewables and Efficiency

Virginia Housing Trends
Northern Virginia Real Estate

The federal government has extended the $8,000 tax credit to new home buyers

The deadline for the federal tax credit to first time home buyers has been extended. The federal government has also included an expansion for prospective buyers that already own a home.

The federal government has extended the $8,000 tax credit to new home buyers, and those who have not owned a home in the last three years, when they sign a contract to buy a home before April 30, 2010. Congress also added a $6,500 tax incentive to those buyers who currently own a home and have lived there for the last five years.

Claudia webb RE/MAX Allegiance
Northern Virginia Real Estate

Tax Credit to Home Buyers Extended and Expanded

The White House has confirmed that President Obama will sign into law an extension on the federal tax credit to first time home buyers sometime this weekend.  The bill, which also includes an expansion for prospective buyers that already own a home, passed in Congress just days ago.  The tax credit was due to expire at the end of November, however, members of Congress worked hard to renew the important economic stimulus package.

Congress has extended the $8,000 tax credit to new home buyers by seven months.  They also added a $6,500 tax incentive to those buyers who currently own a home and have lived there for five years or more.

http://cbs11tv.com/national/congress.jobs.homebuyers.2.1293300.html

Claudia webb RE/MAX Allegiance
Northern Virginia Real Estate

Home Buyers Tax Credit

The Virginia Association of Realtor released the following information about the Homebuers Tax Credit.

The American Recovery and Reinvestment Act of 2009 features an $8,000 tax credit for first-time buyers who purchase a home on or after January 1, 2009 and before December 1,2009.

  • The temporary credit is only available for home Purchaser made from Jan. 1, 2009 to before Dec. 1, 2009 and is equal to 10% of the cost of the home, up to a maximum credit of $8,000.  (for Example, a home purchased for $80,000 or more would qualify for the full $8,000 credit, while a $70,000 home would qualify for only 10%, or $7,000.)
  • Buyers claim the credit on their federal tax return to reduce their tax liability.  If the crdit is more than their toral tax liability that year, the buyer will receive a refund check for the balance.
  • Only first-time homebuyers can take advantage of the tax credit as n individual who has not owned a home in the last three years.  For married joint filers, both much meet the first-time homebuyer test to take the credit on a joint return.
  • Eligible properties include anything that will be used as a principle single-family residence–including condos and townhouses.
  • There are income guidelines on the credit.  Individuals with an adjusted gross income up to $75,000 (or $150,000 if filing  jointly) are eligible for the full tax credit.  The credit is phased down for those earning more and is not available for those with an income above $95,000 (or 170,000 if filing jointly).
  • The new tax credit  does not have to be repaid if the buyer stays in the home at least three years.  If the home is sold before that, the entire amount of the credit is recaptured on the sale.
  • People who purchased home under the 2008 $7,500 tax credit program will still be required to repay that credit to the government over a 15 year period.

Source: Illinois Association of  REALTORS

Claudia webb RE/MAX Allegiance
Northern Virginia Real Estate