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First-Time Homebuyer Tax Credit |
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Written by Roxy Hart
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Saturday, 14 February 2009 07:02 |
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Major Modifications Italicized
February 2009
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Feature
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Credit As Created July 2008
Applies to All Qualified Purchases
On Or After April 9, 2008
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Revised Credit -
Effective for Purchases on
Or After January 1, 2009
And Before December 1, 2009
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Amount of Credit
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Lesser of 10 percent of cost of home or $7,500
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Maximum credit amount increased to $8,000
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Eligible Property
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Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence
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No change
All principal residences eligible
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Refundable
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Yes. Reduces (or can eliminate) income tax
liability for the year of purchase.
Any unused amount of tax credit refunded
To purchaser.
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No change
Purchasers will continue to
Receive refund for unused amount when tax return is filed.
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Income Limit
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Yes. Full amount of credit available
for individuals with
Adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 & $170,000)
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No change
Same income limits continue to apply
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First-time Homebuyer Only
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Yes. Purchaser (and purchaser's spouse)
may not have owned a principal residence
in 3 years previous to purchase.
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No change
Still available for first-time purchasers only.
Three-year rule continues to apply.
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Revenue Bond Financing
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No credit allowed if home financed
with state/local bond funding.
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Purchasers who utilize revenue bond
financing can use credit.
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Repayment
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Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing.
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No repayment for purchases on or after January 1, 2009 and before December 1, 2009
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Recapture
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If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale.
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If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
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Termination
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July 1, 2009
(But note program changes for 2009)
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December 1, 2009
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Effective Date
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Purchases on or after April9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year.
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All revisions are effective as of January 1, 2009
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Please let us know your comments on the modifications to this bill at
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Denver's Economic Forecast for 2009 |
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Written by Kim Olson
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Friday, 13 February 2009 07:42 |
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Last Thursday I had the rare opportunity to be invited to a luncheon sponsored by the Woman's Council of Realtors at the Embassy Suites. Their guest speaker that afternoon was Patty Silverstein, the Chief Economist for Denver . She shared, in considerable detail, the cities economic forecast for the coming year.
She stated that our great city is in the process of charting a new course and the progress of our cities recovery is going to be largely based on what we are doing as consumers. In case many of you haven't heard, "savings" are at an all time high as consumers anticipate the proverbial "dropping of the other shoe". But on that note…it was mentioned that Denver is more innovative than the rest of the nation, which can be seen by the types of industries that call Denver Colorado home. (Aerospace, Bioscience, Biotech & Pharmaceuticals, which in large part are funded by state & federal, as well as, private monies for research and development).
I know everyone wants to hear more stats on unemployment in the Denver Metro Area…right now it is my understanding we are at approximately 7,100 in job loss per month. (Don't quote me on that…as we all know these numbers can change minute to minute). But, even as bad as this feels, our unemployment in Denver was far worse in 2002 & 2003. In fact, Denver really didn't start to feel effects of the current unemployment crisis until November of 2008…if you remember correctly, the rest of the nation was feeling this effect by mid-year. We are still 1% under the National Average for job loss.
It is projected that the industries to see the most decline in our area will be the "service industry", such as attorneys & janitors. The city anticipates the most job growth will be in Education & Health Services. In case you have decided to quit listening to the "Bad Nightly News", Grand Junction was highlighted nationally for having the lowest unemployment rate at 3%...do largely to the Oil & Gas Industry.
The good news a little closer to home is that we are now considered the "Clean Air Corridor", due to this we are currently attracting companies that make " wind blades & turbines " for those giant windmills that generate natural energy (I like to call them Kimmills). We are also on the cutting edge for research that relate to Biofuels, we are currently developing a way to use "algae" to create energy. On a side note…I heard that over at the School of Mines, they have a new "ET" Program that could literally be as big as the ".Com" rally from years past….very hush hush right now, but we could be seeing the benefits of it taking effect within the next 3-5 years….sounds interesting to me and great for Denver.
As for the "Housing Market"…here goes….the city is projecting a 1% market value increase to take effect this year toward the 3rd & 4th quarter. The growth of the city will be primarily focused north of the Metro Area. The really good news is that only 8,000 new build residential permits have been requested for 2009. Hopefully this will help our resale home market to stabilize. Surprisingly, "rental" vacancies are up…based simply on the fact that more people are sharing less space to make ends meet in today's economy.
I know that most of you have heard that " lenders " just aren't giving home loans…and frankly, that is just a bunch of bumkiss. If we think back just ten years or so…you might remember a time when you actually had to "prove" your income, "prove" your assets and most borrowers had a "magic number" that was determined by the lender on "what Home Buyers could spend for a house"…guess what…those days are back. If you have a good FICO, job stability and money down….they can pretty much get you to the closing table in 5-7 days. A miracle…not really…just the way it should have always been.
Well, there you have it…we should pull our bottom lip of the floor, pull up our boot straps and focus on what "WE" can do as consumers to get money back in circulation. Yes, that might mean you should replace the tennis shoes with the hole in them or fix the car that your neighbors can hear coming down the street a mile away or even treat yourself to a facial at your favorite day spa. I didn't say you had to run down the street throwing money from your handbag, I'm just saying we need to quit living in fear.
Written by Kim Olson
Chief Editor - TheDenverSource
Realtor - Real Estate of the Rockies |
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Last Updated on Friday, 13 February 2009 08:07 |
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The $15,000 Home Buying Tax Credit Proposal |
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Written by Staff Posting
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Friday, 06 February 2009 23:52 |
Copied From US News & World Report
The $15,000 Home Buying Tax Credit: 6 Things to Know
February 06, 2009 03:15 PM ET | Luke Mullins A number of readers have written in asking for details about the home buyer tax credit amendment that was recently added to the Senate version of the economic stimulus package. The provision, introduced by Sen. Johnny Isakson, a Republican from Georgia, would provide a tax credit of as much as $15,000--or 10 percent of the home's price tag, whichever is less--to anyone buying a primary residence during a one-year period beginning on the date of enactment. After reading through your questions, here's a list of six things to know about the amendment.
1. I recently bought a home and qualified for the $7,500 new home buyer tax credit. Should this provision become law, would I qualify for it well? The short answer is no, says Rob Dietz, an economist for the National Association of Home Builders. "The effective date of the…amendment is the date of enactment," Dietz says. "So if you've already completed a purchase, you would not be qualified for the new program."
2. Isakson's press release reads: "The amendment would sunset the current $7,500 housing tax credit on the date of enactment." What does the term "sunset" mean there? In this context, the term "sunset" means that the $7,500 new home buyer tax credit would be supplanted by the proposed $15,000 credit, which applies to all home purchases--not just new homes. "If you are operating under the $7,500 [credit], that's the one you [have]," says Joan Kirchner, Sen. Isakson's Deputy Chief of Staff. "Then, from the date of enactment forward, the new one takes over and nobody else gets the old $7,500 [credit]."
Do you want to speak with a Realtor in your area directly? 303.917.6402 or
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Last Updated on Saturday, 07 February 2009 00:07 |
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Read more...
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Are Background Checks in the Near Future for Real Estate Agents? |
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Written by Kim Olson
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Thursday, 29 January 2009 09:53 |
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I had a very interesting meeting with an individual this afternoon about where the future of Realtors is heading across the Nation. As many of you have probably read my articles on " the good, the bad & the ugly " of Real Estate Agents in our local area, it was refreshing to find that I am not alone in my concern of how consumers view our profession.
It is unfortunate that real estate agents, not only in Denver Colorado, but everywhere- are ranked below "car salesmen" in regards to integrity. In some ways, it infuriates me that the not-so-few "bad apples" currently holding a license in Colorado have single handedly torpedoed our image as Realtors.
But, I can see a silver lining on the horizon…and it's called PRC Network . In a nutshell, this organization thoroughly investigates the history of a real estate agent requesting to be considered for this designation. Not only can a home Buyer or Seller feel confident that this agent has had a full background check, but the additional "perks" affiliated with a PRC agent can be extremely beneficial to your wallet. (please speak to a designated PRC Agent for more details)
Now you know I don't want to spoil the surprise, so at this time I just wanted to give you a little taste of what to expect in the very near future. PRC has just recently opened their office here in the Denver area and applications are currently being accepted for screening. One thing I want to mention before I wrap this article up, the PRC designation is limited to 1 agent per 5000 households in the various areas of the Denver Metro. Passing the background check is only the first step in the process of being accepted, a thorough interview process and real estate history are truly the final determining factors.
But what I like the best about this designation, is that there is a 3 strikes policy…meaning if you have 3 complaints from clients, then it is at the District Managers discretion to void your affiliation with PRC. It is sad, that we have come to this point of having to be held accountable at such a high level for Realtors to understand that they are no longer "flying under the radar" when it comes to their poor business practices.
Written by Kim Olson Chief Editor
Realtor - Real Estate of the Rockies |
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Last Updated on Saturday, 14 February 2009 07:51 |
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It's always wonderful when a good friend returns from a long trip away...the same can be said about the return of 
