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HAVE YOU HEARD?  THIS CREDIT IS NOW EXTENDED TO APRIL 30, 2010!

In November, our Congress and President extended ‘The American Recovery and Reinvestment Act of 2009′ which authorizes a tax credit of up to $8,000 for qualified first-time home buyers. 

Valuable facts about who qualifies for the tax credit;

1. Who is eligible to claim the tax credit?
   First-time home buyers purchasing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before April 30, 2010. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.

   Important note; To qualify for the tax credit, your purchased property will need to close by April 29, 2010 — NOT April 30, 2010.

2. What is the definition of a first-time home buyer?
   The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the home-ownership history of both the home buyer and his/her spouse.

   For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter.

   Ownership of a vacation home or rental property not used as a principal residence does not disqualify you as a first-time home buyer.

3. How is the amount of the tax credit determined?
   The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

   For example, If the home purchase price was $80,000. 10% percent of this price is $8,000.

4. Are there any income limits for claiming the tax credit?
   The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $125,000 for single taxpayers and $225,000 for married taxpayers filing a joint return.

5. Do I need to complete an application?
   No applications are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.

6. Do I need to file a seperate form when I file my taxes?
   Yes. Form 5405 supplied by the IRS should be attached to your Form 1040 to claim your First-Time Homebuyer Credit.

7. What types of homes will qualify for the tax credit?
   Any home that will be used as a principal residence will qualify for the credit.

8. I read that the tax credit is “refundable.” What does that mean?
   The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

9. Is a tax credit the same as a tax deduction?
   No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.

10. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
    Consult a Tax Advisor for further advice.

If you have any questions about the “$8,000 First-Time Home Buyer’s Tax Credit”, please feel free to give me a call at 503.467.9997 or send me an email.

 FINDING THE RIGHT REALTOR

I often get told that people think all Realtors’ are the same, but finding the right Realtor can make the difference between a stress-free or a stressful experience.

Customer service is key in real estate; here are some attributes of my services which set me apart from other Realtors;

First, you will want a Realtor ready and able to make a full-time commitment to your real estate needs. I can and always have put my client’s needs first.  I believe in guiding my clients step by step through the process, serving as your personal guide through this exciting time in your life. 

Second, you’ll want a Realtor who is accessible to answer your questions day or night. I take great pride in this guarantee; If you have a real estate question, give me a call. If I miss your call, I will be in touch with you within 30 minutes or less.

Third, you’ll want a Realtor with the resources that only a full-service real estate firm can bring to the table on your behalf. I’m proud to be associated with Capstone Real Estate, Portland’s fastest growing residential real estate company.

Fourth, you will want a Realtor who is knowledgeable about the Tri-County area real estate trends and homes in Portland, Beaverton, Tigard and Troutdale, not to mention schools, market conditions, and ordinances. With my background, I have the expertise and track record of success you need.

Fifth, you’ll want a Realtor who is innovative and embraces the convenience of technology without losing the personal touch you deserve.  The online resources available to you will enhance the time I will spend with you by making your home buying/selling experience easier, faster and more efficient.

If you have any questions about the outstanding services I offer, please feel free to give me a call at 503.467.9997 or send me an email.