|
|
 |
|
 | Forsyth County, GA Real Estate Blog |
|
|
Friday, 19 February 2010
These numbers are calculated based on information from First Multiple Listing Service:
Good news: Better Unit Sales than January 2009
Bad News: It's obvious but we won't dwell on that!
| Forsyth County Total Market Overview 1/1/10- 1/31/10 |
| Price Range: 1000's |
Number of Active Listings |
Number of Pendings |
Number of Expired Last 30 Days |
Number of Closes last 30 Days |
Activity Index |
30 Day Absorbption Rate |
| $0-$149,999 |
179 |
19 |
14 |
9 |
10% |
19.9 |
| $150,000-$199,999 |
258 |
20 |
37 |
21 |
7% |
12.3 |
| $200,000-$249,999 |
283 |
14 |
31 |
20 |
5% |
14.2 |
| $250,000-$299,999 |
244 |
8 |
27 |
13 |
4% |
18.8 |
| $300,000-$349,999 |
155 |
10 |
24 |
12 |
5% |
12.9 |
| $350,000-$399,999 |
161 |
8 |
13 |
5 |
6% |
32.2 |
| $400,000-$499,999 |
184 |
11 |
25 |
7 |
3% |
26.3 |
| $500,000-$649,999 |
154 |
5 |
24 |
9 |
4% |
17.1 |
| $650,000-$799,999 |
97 |
7 |
7 |
2 |
0% |
48.5 |
| $800,000-$999,999 |
41 |
0 |
6 |
1 |
0% |
41.0 |
| $1M+ |
72 |
0 |
10 |
1 |
0% |
72.0 |
| Market Totals: |
1828 |
102 |
218 |
100 |
5% |
18.3 |
| LAST MONTH |
1818 |
76 |
255 |
169 |
4% |
10.8 |
| LAST YEAR |
2,220 |
216 |
278 |
55 |
9% |
40.4 |
Friday, 19 February 2010
First-Time Homebuyer Credit Questions and Answers: Homes Purchased in 2009 or 2010
|
| |
|
New legislation signed on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. The new law:
- extends deadlines for purchasing and closing on a home
- authorizes the credit for long-time homeowners buying a replacement principal residence
- raises the income limitations for homeowners claiming the credit
General Information
Q. How does the first-time homebuyer credit differ for homes purchased in 2009 and 2010 compared to the credit for homes purchased in 2008?
A. First-time homebuyers who purchased new homes in 2008, subject to certain criteria, were eligible for a maximum credit of $7,500, which must be repaid over a 15-year period.
Eligibility for the credit and the amount of the available credit for new homes purchased in 2009 were subject to a variety of changing rules depending upon when the home was purchased. First-time homebuyers who purchased new homes in 2009, subject to certain criteria, were eligible for a maximum credit of $8,000, which does not have to be repaid. Long-time residents who purchased homes after November 6, 2009, subject to certain criteria, were eligible for a maximum credit of $6,500, which does not have to be repaid. First-time homebuyers and long-time residents who purchase new homes in 2010 before May 1, 2010, subject to certain criteria, are eligible for a maximum credit of $8,000 or $6,500, respectively, which does not have to be repaid.
The credit for home purchases made in 2008 should be claimed on 2008 tax returns. The credit for purchases made in 2009 can be claimed on either the 2008 or 2009 tax return. The credit for homes purchased in 2010 can be claimed on either the 2009 or 2010 tax return. (1/27/10)
Long-Time Homeowners
Q. I understand that even if I have previously owned a home, I may be eligible for the homebuyer credit. Can you explain the rules?
A. If you are a long-time resident and owner of the same main home and you buy a new home, the law may allow you to claim the homebuyer credit. You must buy your new home after Nov. 6, 2009, and before May 1, 2010. Alternatively, if you sign a binding contract on or before April 30, 2010, you must purchase or close on the new home on or before June 30, 2010. If you claim the credit as a long-time resident of the same main home, please provide documentation showing you lived in that home for a five-consecutive-year period during the eight years ending on the date you buy the new home. (1/26/10)
Q. I’m already a homeowner. If I buy another home after Nov. 6, 2009, to use as my principal residence, do I have to sell my home to qualify for the homebuyer tax credit?
A. No. If you meet all of the requirements for the credit, the law does not require you to sell or otherwise dispose of your current principal residence to qualify for a credit of up to $6,500 when you buy a replacement home to use as your principal residence. The requirements are that you must buy, or enter into a binding contract to buy, the replacement principal residence after Nov. 6, 2009, and on or before April 30, 2010, and close on the home by June 30, 2010. Additionally, you must have lived in the same principal residence for any five-consecutive-year period during the eight-year period that ended on the date the replacement home is purchased. For example, if you bought a home on Nov. 30, 2009, the eight-year period would run from Dec. 1, 2001, through Nov. 30, 2009. (11/17/09)
Q. Do I need to own a home at the time I buy my new home to get the credit as a long-time resident of the same main home?
A. No, you do not have to own a home at the time you make your new purchase. But you must satisfy the criteria for having owned and lived in a home as your primary residence for a five-consecutive year period that falls somewhere within the eight-year timeframe that ends on the date you buy the home on which you are claiming the credit.
Thus, if you make a qualifying home purchase on Nov. 30, 2009, the eight-year period would run from Dec. 1, 2001, to Nov. 30, 2009. If you bought your previous home on Nov. 1, 2003, and continued living in it as your main home until at least Oct. 31, 2008, you will meet the five-consecutive year requirement. In this situation, you will still qualify for the credit even if you didn’t own a home from Nov. 1, 2008, to Nov. 30, 2009, but you instead, for example, lived in a rental home during that period. (1/26/10)
Q. I know that I can only get the credit if I owned and lived in my home for at least five consecutive years. How is the eligibility period figured?
A. You must own a home and use it as your principal residence for any five-consecutive-year period during the eight-year period ending on the date you by the home on which you are claiming the credit. The five-consecutive year period can cover any uninterrupted time span during the eight-year period. For example, suppose you make a qualifying home purchase on Nov. 30, 2009. The eight-year period would run from Dec. 1, 2001, to Nov. 30, 2009. If you bought and began living in your previous home on Nov. 1, 2003, and continued to own and live in that home until at least Oct. 31, 2008, you meet the five-consecutive-year requirement. (1/26/10)
Q. Does the five year period need to be five consecutive calendar years?
A. No. The five-consecutive–year-period does not have to run from January 1 through December 31 provided it spans a continuous five-year period during the eight years prior to the purchase date of the new residence for which you are claiming the credit. For example, if you bought and began living in your previous home on Nov. 1, 2003, and continued to own and live in that home until at least Oct. 31, 2008, you would meet the five-consecutive-year requirement. (1/26/10)
Married and Co-Purchasing Homebuyers
Q. I am a long-time resident (have owned and used my current home as a principal residence for five consecutive years out of the eight-year period ending on the date of purchase of the new residence) but my spouse has lived there for only three years. Can we qualify for the long-time resident homebuyer credit if we purchase a new principal residence?
A. No. Both spouses must have owned and used the same previous principal residence for five consecutive years out of the 8-year period ending on the date of purchase of the new principal residence to qualify for the credit. (12/14/09)
Q. I am a long-time resident and current homeowner and my spouse is a first-time homebuyer (has had no ownership interest in a principal residence during the three-year period ending on the date of purchase of a new principal residence) and we purchased a new principal residence. Can we qualify for either the first-time homebuyer credit or the long-time resident homebuyer credit if we purchase a new principal residence?
A. No. Both you and your spouse must be first-time homebuyers in order to qualify for the first-time homebuyer tax credit. Since you had an ownership interest in a principal residence during the three-year period ending on the date of purchase, neither you nor your spouse qualifies for the credit. Similarly, both you and your spouse must be long-time homeowners of the same previous principal residence in order to qualify for the long-time resident homebuyer credit. Since your spouse is not a long-time homeowner of your current principal residence, neither of you qualify for the credit. (12/14/09)
Q. I am a long-time homeowner of a principal residence and my spouse is a long-time homeowner of a different principal residence. Can we qualify for the long-time resident homebuyer credit if we purchase a new principal residence?
A. No. Both spouses must have owned and used the same previous principal residence for five consecutive years out of the eight-year period ending on the date of purchase of the new principal residence to be eligible for the credit. Since you and your spouse owned and used different principal residences, neither of you qualify. (12/14/09)
Q. How does the allocation provision work when unmarried taxpayers purchase a home together and both qualify for the first-time homebuyer credit under different tests?
A. Co-purchasers who are not married may allocate the credit using a reasonable method. A reasonable method is any method that does not allocate any portion of the credit to a taxpayer who is not eligible for that portion of the credit. The maximum credit for a taxpayer who qualifies under the long-time resident test is $6,500, and the maximum credit for a taxpayer who qualifies under the first-time homebuyer test is $8,000. One example of a reasonable method is to allocate $6,500 to the long-time resident homebuyer and $1,500 to the first-time homebuyer. (12/14/09)
Home Construction
Q. I plan to build a home and occupy it in 2009 or early 2010. Can I claim the first-time homebuyer credit now and use the funds toward the down payment or other ongoing construction costs?
A. No. To qualify for the first time home buyer credit, the residence must be purchased. By statute, a residence which is constructed by the taxpayer is treated as purchased on the date the taxpayer first occupies the residence. (05/06/09)
Q. I entered into a written home construction contract with a homebuilder before May 1, 2010, and the contract provides for completion of the home before July 1, 2010. Can I take the credit for the construction costs?
A. Your home construction contract qualifies as a binding contract, entered into on or before April 30, 2010, to close on the purchase of a principal residence on or before June 30, 2010. If you occupy the home on or before June 30, 2010, and meet the other requirements, you can take the credit. (12/17/09)
Q. I entered into a written home construction contract with a homebuilder before May 1, 2010, and the contract provides for completion of the home before September 1, 2010. Can I take the credit for the construction costs?
A. Your home construction contract does not qualify as a binding contract to close on the purchase of a principal residence on or before June 30, 2010. Therefore, you do not qualify for the two-month extension of the deadline for completing the purchase in the case of a binding contract. However, if you occupy the home on or before April 30, 2010, and meet the other requirements, you can take the credit. If you do not occupy the home on or before April 30, 2010, you cannot take the credit.
(12/17/09)
Claiming the Credit
Q. I bought my home in early 2009, before the new $8,000 credit was enacted. I filed my 2008 return claiming the old $7,500 credit that has to be repaid. What do I need to do to get the $8,000 credit?
A. You can file an amended return.
Q. I purchased a home in 2009, after I filed my 2008 return. Do I claim the credit on my 2009 return or can I claim it on an amended 2008 return?
A. You can either file an amended return to claim it on your 2008 return or you can claim it on your 2009 return.
Q. I am in the process of buying a home. Can I claim the first-time homebuyer credit now? That would allow me to use the refund for a down payment.
A. No. You may not claim the credit in anticipation of a purchase that has yet to happen. Until you have finalized the purchase of your home, which for most purchasers occurs at the time of the closing, you do not qualify for the credit. IRS news release 2009-27, First-Time Homebuyers Have Several Options to Maximize New Tax Credit, contains details for filing options if the home is purchased after April 15, 2009.
Repaying the Credit
Q. When must I pay back the credit for the home I purchased in 2009?
A. Generally, there is no requirement to pay back the credit for a principal residence purchased in 2009 or early 2010. The obligation to repay the credit arises only if the home ceases to be your principal residence within 36 months from the date of purchase. The full amount of the credit received becomes due on the return for the year the home ceased being your principal residence.
Q. If I claim the first-time homebuyer credit for a purchase in 2009 or early 2010 and stop using the property as my principal residence before the 36 month period expires after I purchase, how is the credit repaid and how long would I have to repay it?
A. If, within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full amount of the credit is due at the time the income tax return for the year the home ceased to be your principal residence is due. The full amount of the credit is reflected as additional tax on that year's tax return. Form 5405 and its instructions will be revised for tax year 2009 to include information about repayment of the credit.
|
|
First-Time Homebuyer Credit Questions and Answers: Homes Purchased in 2009 or 2010
|
| |
|
New legislation signed on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. The new law:
- extends deadlines for purchasing and closing on a home
- authorizes the credit for long-time homeowners buying a replacement principal residence
- raises the income limitations for homeowners claiming the credit
General Information
Q. How does the first-time homebuyer credit differ for homes purchased in 2009 and 2010 compared to the credit for homes purchased in 2008?
A. First-time homebuyers who purchased new homes in 2008, subject to certain criteria, were eligible for a maximum credit of $7,500, which must be repaid over a 15-year period.
Eligibility for the credit and the amount of the available credit for new homes purchased in 2009 were subject to a variety of changing rules depending upon when the home was purchased. First-time homebuyers who purchased new homes in 2009, subject to certain criteria, were eligible for a maximum credit of $8,000, which does not have to be repaid. Long-time residents who purchased homes after November 6, 2009, subject to certain criteria, were eligible for a maximum credit of $6,500, which does not have to be repaid. First-time homebuyers and long-time residents who purchase new homes in 2010 before May 1, 2010, subject to certain criteria, are eligible for a maximum credit of $8,000 or $6,500, respectively, which does not have to be repaid.
The credit for home purchases made in 2008 should be claimed on 2008 tax returns. The credit for purchases made in 2009 can be claimed on either the 2008 or 2009 tax return. The credit for homes purchased in 2010 can be claimed on either the 2009 or 2010 tax return. (1/27/10)
Long-Time Homeowners
Q. I understand that even if I have previously owned a home, I may be eligible for the homebuyer credit. Can you explain the rules?
A. If you are a long-time resident and owner of the same main home and you buy a new home, the law may allow you to claim the homebuyer credit. You must buy your new home after Nov. 6, 2009, and before May 1, 2010. Alternatively, if you sign a binding contract on or before April 30, 2010, you must purchase or close on the new home on or before June 30, 2010. If you claim the credit as a long-time resident of the same main home, please provide documentation showing you lived in that home for a five-consecutive-year period during the eight years ending on the date you buy the new home. (1/26/10)
Q. I’m already a homeowner. If I buy another home after Nov. 6, 2009, to use as my principal residence, do I have to sell my home to qualify for the homebuyer tax credit?
A. No. If you meet all of the requirements for the credit, the law does not require you to sell or otherwise dispose of your current principal residence to qualify for a credit of up to $6,500 when you buy a replacement home to use as your principal residence. The requirements are that you must buy, or enter into a binding contract to buy, the replacement principal residence after Nov. 6, 2009, and on or before April 30, 2010, and close on the home by June 30, 2010. Additionally, you must have lived in the same principal residence for any five-consecutive-year period during the eight-year period that ended on the date the replacement home is purchased. For example, if you bought a home on Nov. 30, 2009, the eight-year period would run from Dec. 1, 2001, through Nov. 30, 2009. (11/17/09)
Q. Do I need to own a home at the time I buy my new home to get the credit as a long-time resident of the same main home?
A. No, you do not have to own a home at the time you make your new purchase. But you must satisfy the criteria for having owned and lived in a home as your primary residence for a five-consecutive year period that falls somewhere within the eight-year timeframe that ends on the date you buy the home on which you are claiming the credit.
Thus, if you make a qualifying home purchase on Nov. 30, 2009, the eight-year period would run from Dec. 1, 2001, to Nov. 30, 2009. If you bought your previous home on Nov. 1, 2003, and continued living in it as your main home until at least Oct. 31, 2008, you will meet the five-consecutive year requirement. In this situation, you will still qualify for the credit even if you didn’t own a home from Nov. 1, 2008, to Nov. 30, 2009, but you instead, for example, lived in a rental home during that period. (1/26/10)
Q. I know that I can only get the credit if I owned and lived in my home for at least five consecutive years. How is the eligibility period figured?
A. You must own a home and use it as your principal residence for any five-consecutive-year period during the eight-year period ending on the date you by the home on which you are claiming the credit. The five-consecutive year period can cover any uninterrupted time span during the eight-year period. For example, suppose you make a qualifying home purchase on Nov. 30, 2009. The eight-year period would run from Dec. 1, 2001, to Nov. 30, 2009. If you bought and began living in your previous home on Nov. 1, 2003, and continued to own and live in that home until at least Oct. 31, 2008, you meet the five-consecutive-year requirement. (1/26/10)
Q. Does the five year period need to be five consecutive calendar years?
A. No. The five-consecutive–year-period does not have to run from January 1 through December 31 provided it spans a continuous five-year period during the eight years prior to the purchase date of the new residence for which you are claiming the credit. For example, if you bought and began living in your previous home on Nov. 1, 2003, and continued to own and live in that home until at least Oct. 31, 2008, you would meet the five-consecutive-year requirement. (1/26/10)
Married and Co-Purchasing Homebuyers
Q. I am a long-time resident (have owned and used my current home as a principal residence for five consecutive years out of the eight-year period ending on the date of purchase of the new residence) but my spouse has lived there for only three years. Can we qualify for the long-time resident homebuyer credit if we purchase a new principal residence?
A. No. Both spouses must have owned and used the same previous principal residence for five consecutive years out of the 8-year period ending on the date of purchase of the new principal residence to qualify for the credit. (12/14/09)
Q. I am a long-time resident and current homeowner and my spouse is a first-time homebuyer (has had no ownership interest in a principal residence during the three-year period ending on the date of purchase of a new principal residence) and we purchased a new principal residence. Can we qualify for either the first-time homebuyer credit or the long-time resident homebuyer credit if we purchase a new principal residence?
A. No. Both you and your spouse must be first-time homebuyers in order to qualify for the first-time homebuyer tax credit. Since you had an ownership interest in a principal residence during the three-year period ending on the date of purchase, neither you nor your spouse qualifies for the credit. Similarly, both you and your spouse must be long-time homeowners of the same previous principal residence in order to qualify for the long-time resident homebuyer credit. Since your spouse is not a long-time homeowner of your current principal residence, neither of you qualify for the credit. (12/14/09)
Q. I am a long-time homeowner of a principal residence and my spouse is a long-time homeowner of a different principal residence. Can we qualify for the long-time resident homebuyer credit if we purchase a new principal residence?
A. No. Both spouses must have owned and used the same previous principal residence for five consecutive years out of the eight-year period ending on the date of purchase of the new principal residence to be eligible for the credit. Since you and your spouse owned and used different principal residences, neither of you qualify. (12/14/09)
Q. How does the allocation provision work when unmarried taxpayers purchase a home together and both qualify for the first-time homebuyer credit under different tests?
A. Co-purchasers who are not married may allocate the credit using a reasonable method. A reasonable method is any method that does not allocate any portion of the credit to a taxpayer who is not eligible for that portion of the credit. The maximum credit for a taxpayer who qualifies under the long-time resident test is $6,500, and the maximum credit for a taxpayer who qualifies under the first-time homebuyer test is $8,000. One example of a reasonable method is to allocate $6,500 to the long-time resident homebuyer and $1,500 to the first-time homebuyer. (12/14/09)
Home Construction
Q. I plan to build a home and occupy it in 2009 or early 2010. Can I claim the first-time homebuyer credit now and use the funds toward the down payment or other ongoing construction costs?
A. No. To qualify for the first time home buyer credit, the residence must be purchased. By statute, a residence which is constructed by the taxpayer is treated as purchased on the date the taxpayer first occupies the residence. (05/06/09)
Q. I entered into a written home construction contract with a homebuilder before May 1, 2010, and the contract provides for completion of the home before July 1, 2010. Can I take the credit for the construction costs?
A. Your home construction contract qualifies as a binding contract, entered into on or before April 30, 2010, to close on the purchase of a principal residence on or before June 30, 2010. If you occupy the home on or before June 30, 2010, and meet the other requirements, you can take the credit. (12/17/09)
Q. I entered into a written home construction contract with a homebuilder before May 1, 2010, and the contract provides for completion of the home before September 1, 2010. Can I take the credit for the construction costs?
A. Your home construction contract does not qualify as a binding contract to close on the purchase of a principal residence on or before June 30, 2010. Therefore, you do not qualify for the two-month extension of the deadline for completing the purchase in the case of a binding contract. However, if you occupy the home on or before April 30, 2010, and meet the other requirements, you can take the credit. If you do not occupy the home on or before April 30, 2010, you cannot take the credit.
(12/17/09)
Claiming the Credit
Q. I bought my home in early 2009, before the new $8,000 credit was enacted. I filed my 2008 return claiming the old $7,500 credit that has to be repaid. What do I need to do to get the $8,000 credit?
A. You can file an amended return.
Q. I purchased a home in 2009, after I filed my 2008 return. Do I claim the credit on my 2009 return or can I claim it on an amended 2008 return?
A. You can either file an amended return to claim it on your 2008 return or you can claim it on your 2009 return.
Q. I am in the process of buying a home. Can I claim the first-time homebuyer credit now? That would allow me to use the refund for a down payment.
A. No. You may not claim the credit in anticipation of a purchase that has yet to happen. Until you have finalized the purchase of your home, which for most purchasers occurs at the time of the closing, you do not qualify for the credit. IRS news release 2009-27, First-Time Homebuyers Have Several Options to Maximize New Tax Credit, contains details for filing options if the home is purchased after April 15, 2009.
Repaying the Credit
Q. When must I pay back the credit for the home I purchased in 2009?
A. Generally, there is no requirement to pay back the credit for a principal residence purchased in 2009 or early 2010. The obligation to repay the credit arises only if the home ceases to be your principal residence within 36 months from the date of purchase. The full amount of the credit received becomes due on the return for the year the home ceased being your principal residence.
Q. If I claim the first-time homebuyer credit for a purchase in 2009 or early 2010 and stop using the property as my principal residence before the 36 month period expires after I purchase, how is the credit repaid and how long would I have to repay it?
A. If, within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full amount of the credit is due at the time the income tax return for the year the home ceased to be your principal residence is due. The full amount of the credit is reflected as additional tax on that year's tax return. Form 5405 and its instructions will be revised for tax year 2009 to include information about repayment of the credit.
|
|
IRS.gov
Wednesday, 11 November 2009
First Time Homebuyer Tax Credit Extended Into 2010!
Plus...A New Tax Credit for Certain Existing Home Owners!
It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.
In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.
So Who Gets What?
The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.
Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Deadlines
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased..
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.
First-Time Homebuyer Tax Credit – Frequently Asked QuestionsHere are answers to some commonly asked questions about the tax credit.
What is a tax credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.
What is the tax credit for first-time homebuyers (FTHBs)?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.
Who is eligible for the FTHB tax credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.
As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.
How do I claim the credit?
For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).
Can you claim the tax credit in advance of purchasing a property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.
Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.
Are there other restrictions to taking the credit?
Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.
- You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
- You do not use the home as your principal residence.
- You sell your home before the end of the year.
- You are a nonresident alien.
- You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
- Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
- You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.
Can you buy a home from a step-relative and be eligible for the credit?
Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.
Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?
Yes.
Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?
No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.
Monday, 12 October 2009
Check out all the Fall Happening in North Georgia this month...
Oktoberfest
10/01-10/31
Helen, GA
www.helencvb.com <http://www.helencvb.com/>
The 38th Georgia Apple Festival
10/10-10/11 & 10/17-10/18
Ellijay, GA
www.georgiaapplefestival.org <http://www.georgiaapplefestival.org/>
Dahlonega Gold Rush Festival
10/17-10/18
Dahlonega, GA
www.dahlonegajaycees.com <http://www.dahlonegajaycees.com/>
The Mountain Moonshine Festival
10/23-10/24
Dawsonville, GA
www.kareforKids.us <http://www.kareforKids.us/>
Oh by the way, if you know of anyone thinking of buying or selling a home, please let us know--we will give them top notch service! Just contact us with their name and number and we'll take it from there!
The Chapman Group
Jamie , Lori & Kim
678-341-7477
Monday, 24 August 2009
Wow!! Is Summer almost over already? The kids are back in school, the ball teams have all kicked up and started practicing and playing games and the real estate market is finally...finally...improving in Cumming, GA. As you know real estate is a very localized thing and this year to date the market has been flat...In the last few weeks, we've seen lots of new activity on our listings and things seem to be coming around a bit. We think this is due to many first time home buyers taking advantages of all the programs out there for them as well as many of the home sellers being educated about the market and being more realistic in their pricing of properties. Because their listings are priced better, they are getting more activity and we are getting more offers. We are also seeing alot of sellers doing short sales (this is where the home sells for less than is owed on the mortgage and this has to be negotiated with the bank(s) that hold the mortgage(s). ) These deals can take anywhere from 3-9 months to close but if it works out, it's normally worth the wait. These deals are not for the impatient...sometimes the bank can come back after months of waiting and simply say "no" to the deal. We are also seeing alot of the foreclosure inventory being absorbed which is great--as soon as the numbers for these distressed properties starts to go down, the recovery of home values can begin. This also means the great deals will be less and less as the number of distressed homes go down...so investors-- now is the time. In fact, for anyone thinking of purchasing--rates are still low and inventory is good, even though we do feel like that situation is changing.
It may be time to get off the fence if you've been waiting for things to "bottom out." Especially for us here in North Atlanta, it seems things are improving--and we hope it continues!
Jamie & Lori Chapman, Kim Lee
The Chapman Group
678-341-7477
Monday, 13 July 2009
I know this is a Real Estate Site, but I just wanted to talk about one of the wonderful things about Forsyth County, Ga.-- The Forsyth County Humane Society is a "no-kill" shelter located here in Forsyth. I recently had the pleasure with working with them and found them to be an organization second to none that rely heavily on volunteers and donations from the public. The pets there are "pampered" to say the least until the organization can find suitable homes for the animals. There is a little more information about this program below, but they are always needing volunteers and/or donations to keep it running.
The link to their website is: http://www.forsythpets.com
The Humane Society of Forsyth County (HSFC) wasFor more information about our foster
Thousands of animals are turned in to shelters every
year. Most will be euthanized. Consider that one
female dog and her offspring can produce 67,000
puppies. In just seven years, one female cat and her
young can give birth to 420,000 kittens! Pet
overpopulation affects us all.
Thousands of your tax dollars are used to fund the
County
HSFC). Low cost programs are now widely available
for spaying and neutering cats and dogs.
’s animal control services and shelter (not
Please call us today at 770/887-6480
founded on December 20, 1975 when the population
of Forsyth County was just over 17,000.
Today, Forsyth County is home to over 132,000
people and their pets!
Our facility, located just east of GA400 on Keith
Bridge Road, can house up to 35 full grown dogs and
puppies and up to 35 cats, who roam freely in well-lit,
comfortable rooms. At any given time, another 25-30
animals are being kept in foster homes. HSFC is one
of the few dog and cat no-kill shelters in Forsyth
County.
home program please call 770/887-6480.
Thursday, 18 June 2009
(this from National Association of Realtors)
On February 18, 2009, President Obama announced his Making Home Affordable Program (MHA), designed to help up to 7-9 million families avoid foreclosure by restructuring or refinancing their mortgages. In doing so, the plan not only helps responsible homeowners behind on their payments or at risk of defaulting, but prevents neighborhoods and communities from being pulled over the edge too, as defaults and foreclosures contribute to falling home values, failing local businesses, and lost jobs.
For more detailed information, visit MakingHomeAffordable.gov.
If you have any questions about selling your home or trying to "short sale" your home, please call The Chapman Group 678-341-7477 or contact us on our website at www.sellingnorthatlanta.com
Thursday, 11 June 2009
The Army Corps of Engineers is lifting a ban on new dock permits on north Georgia's Lake Lanier in another sign that the epic drought that once gripped north Georgia is fast becoming a thing of the past. The Corps issued the moratorium in April 2007 as the drought sent levels at the massive reservoir plunging. As the drought grew worse, the lake's levels dropped more than 18 feet below full pool. But rainy weather has helped north Georgia emerge from the worst drought conditions, and Lanier is now only about four feet below full pool. Corps spokesman E. Patrick Robbins said that helped federal engineers feel confident enough to begin accepting new boat dock permits.
(Associated Press)
 |
|
|
|
|
