Tax Credit in Plain English

TAX CREDIT 2.0

Understanding the Extended Home Buyer Tax Credit

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

 

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
• To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

 

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000. The maximum allowable credit for current homeowners is $6,500.

 

How is a Buyer’s Credit Amount Determined?

Each home buyer’s tax credit is determined by two additional factors:

• The price of the home.
  • Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.
• The buyer’s income.
  • Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

 

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit. The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

 

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

 

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

 

ARE YOU A GOOD “MOVE UP BUYER” CANDIDATE?

 

 

Madison’s “Move Up Buyers” benefit in several ways.

• The $6,500 tax credit may be the difference maker for you to take advantage of a move up. To better understand how this tax credit works, CLICK HERE for information provided by the IRS.
• Interest rates are very low. I would be happy to connect you with a reliable lender offering the best rates and mortgage options.
• Although a seller may take a loss on the home they sell, the gain received is likely to be much greater. The illustration above is a great example.
• Many of the “Move Up Buyers” need to sell a home that is priced in the hottest price ranges for Dane County real estate sales. In fact, properly priced homes in good condition continue to sell quickly. The initial $8,000 tax credit created lots of activity and sales for homes priced under $300,000.
• On the flip side, the home purchase is in the price range that is currently suffering the most. In Dane County the following are the hardest hit price points are $400,000+. In September, the following stagnant sales occurred:

 

 

 

 

 

 

In fact, Dane County currently has over 65 months of “inventory” for homes in the luxury home price range. In the past year, only 13 homes have sold over $800,000. What a great time to buy your dream house at the bottom, before the market rebounds.

 

So, are you a good candidate to take advantage of the tax credit?

Visit my website www.kittlesonteam.com to:

Calculate and research what your home would sell for in today’s real estate market. You will receive two instant estimates once you enter your homes information.

To start dream shopping for your “Move Up” dream home. Once you log in you can save all of your favorite properties and get acquainted with the market from the convenience and privacy of your computer without having multiple Realtors contacting you. This is a service I provide to all of my friends and clients. Feel free to pass this on to anyone you know that would appreciate it.

First Time and Existing Buyer Tax Credit Explained

 

President Obama just signed in to law an extension to the First Time Homebuyer Tax Credit and an additional Home Owner “Extended” Tax Credit of up to $6500 for an existing homeowner. A great resource for explaining the opportunities under this credit can be found by clicking this link.

Bottom line, there will be opportunity for tax credits on a home purchase from now until April 30, 2010. This would be a great time to get out and start looking as well as getting your current home on the market!

Central Madison Police Newsletter

Click this link for the latest edition of the Central Madison Police Newsletter.

Looks like they’re a few months behind.  The “latest” issue is September 2009.

What’s up with that?

Freakfest Hitting State Street on Saturday

It’s interesting to me that what I remember from my youth as a rowdy, crowded party night on State Street has now turned in to an event now known as Freakfest. 

I like the fact that there are some great bands headlining this event.  I love the fact that at least last year, the night went off without much incident.  I’m just not sure I want to pay to participate.

This more than likely has to do with the fact that 5 years ago I was referred to as “the old guy” when I was watching the parade of great characters walk State Street.  Old Guy?!?   Listen missy!  I was on state street in the early 1980’s when the crowds were estimated to top over 100,000 each and every Halloween.  I’m part of the reason this tradition still lives on!

OK, I’ll calm down.  I will miss seeing the creativity of the youth.

To find out what’s happening during the night, click this link.

Not a Top 10 List I Like-

Wisconsin ninth in median property taxes

New data released by the Census Bureau show that Northeast homeowners and those in the Midwest tend to pay the most in property taxes, with Wisconsin ranking ninth among the top 10 states, a nonprofit tax research group based in Washington, D.C., said Tuesday.

See the rest of the Wisconsin State Journal Story by clicking here.

Kittleson Named Finalist in NAR Technology Awards

Darren Kittleson, broker and Operating Principal for Keller Williams Realty Madison West/Madison Crossroads was recently named a finalist in the National Association of REALTORS (NAR) Center for Technology Advocate award category. Kittleson was nominated by his peers for his willingness to go above and beyond the call of duty to reach out and engage people with the information and knowledge he has about technology. He does this with no regard to compensation, and for the most part, has reached across ‘brokerage’ boundaries to help and instruct. He is being recognized as one of the individuals that is making changes in the industry one person at a time.

For the list of nominees, visit this link.

Madison Named 7th Best Place for Jobs

The blog “Top Colleges Blog” has named Madison the 7th best place for jobs.  Even during this recession our great city is being recognized for it’s relatively low unemployment, well educated workforce and high quality of life.

You can see the entire post by clicking here.

Downtown Condo’s Being Burglarized

It seems an enterprising couple is taking advantage of many of us who live downtown in being nice and “holding the door” for them to enter our security locked condo buildings. They are then proceeding to steal.

Here’s the story from the Wisconsin State Journal:

“Police Search For Burglars Caught on Surveillance Tape“

Guess it’s time to begin acting like we’re living in a big city. I’m disappointed in that.

Evita is a Must See

Four Season Theater’s most recent production, “Evita” is a definite must see.

Problem is, it closed today. There’s 1 matinee and if you’re at all a fan of this show, you owe it to yourself to be at the Wisconsin Union Theater for today’s performance.

I’ve been a fan of Four Season Theater since I saw one of their first productions a few years ago of Ragtime at the Middleton Performing Arts Center. The current production, Evita, is of the same caliber. In my humble opinion this is one of the best “community” theater organizations ever in Madison.

First the highlights-Chad Grote as main character Che is right on the mark. His vocals are clear, concise and wonderful to hear. His emotional control of the character comes through clearly in every scene and makes him a joy to watch as a true singer/actor vs. an actor who can sing somewhat or a singer who can slightly act. His the real deal and his talent shines through. My only criticism is the bad hair he dons for the role. I don’t believe it was his own as it looked very wig-like. If that’s the worst thing I can find in his performance, I had to look very hard!

L. Joe Dahl performance of Peron is equally as strong. His downplayed, subtle stage presence was perfect against the strength of character in Eva. Vocally he was right on the mark as well. Again, a strong addition to an already wonderful cast.

Amanda Poulson truly steals the show as Eva Peron. She actually almost made me feel sorry for the character as she fell ill in the story line, and most of you know the rest. Vocally again very strong and wonderful to listen to. Her command of the lyrics were clear and concise as well—a must in pulling off a show like this.

Other notables were Robert Goderich as the used Magaldi. His slightly schmaltzy rendition of a tango singer was right on the mark. Samantha Mae Bock, as the jilted mistress of Peron truly grabbed the audition in her performance of “Another Suitcase in Another Hall”.

The large cast (29 actors) was strong as well both vocally and surprisingly, in their choreography. Not always easy to pull off in community-type theater. Once again Four Seasons did it all very well.

My only critic of the show would have been the orchestra—not always as strong as the cast came across and quite often too loud to be able to hear the singers….there were some beautiful orchestrations within the show but the opening number “Requieum” made it seems as if the orchestra wasn’t quite ready for the show last night.

Don’t let that stop you, though. Evita is sure to please.

Showtimes are today, August 23, 2009 at 2:00 p.m. Get your tickets by clicking here.

Home Affordability at an All Time High