Tracey Saizan ~ Keller Williams Realty

Home-buyer Tax Credit Extended…
Plus, New Tax Credit for Existing Home Owners!
It’s official! President Obama has signed a bill that extends the tax credit for first-time home-buyers (FTHBs) into the first half of 2010. In addition, the extension also opens up opportunities for others who are not buying a home for the first time.
 
TAX CREDIT OVERVIEW
Who Gets What?
First-Time Home-buyers (FTHBs):First-time home-buyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Current Owners: The tax credit 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.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
What are the New 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.
What are the Income Caps?
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.
What is the Maximum Purchase Price?
Qualifying buyers may purchase a property with a maximum sale price of $800,000.
 
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.
How Much are First-Time Home-buyers (FTHB) Eligible to Receive?
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 fort 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 Much are Current Home Owners Eligible to Receive?
The tax credit program includes 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.
Can Home-buyers 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. Some examples of this would include a land contract or a contract for deed.
According to the IRS, factors that would demonstrate the ownership of the property would include:
1. Right of possession,
2. Right to obtain legal title upon full payment of the purchase price,
3. Right to construct improvements,
4. Obligation to pay property taxes,
5. Risk of loss,
6. Responsibility to insure the property, and
7. Duty to maintain the property.
Are There Other Restrictions to Taking the FTHB Credit?
Yes. According to the IRS, if any of the following describe a homebuyer’s situation, a credit would not be due:
They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from “step-relatives.”)
They do not use the home as your principal residence.
They sell their home before the end of the year.
They are a nonresident alien.
They are, or were, eligible to claim the District of Columbia first-time home-buyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
They 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, 2008, 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, 2005, through July 1, 2008. 
Can Home-buyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?
Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.
If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?
Yes, provided that the child meets the other requirements for the tax credit.

Short Sale Seminar ~ Presented by Tracey Saizan ~ Keller Williams Realty

Saturday, July 11, 2009 ~ 12:00 pm - 2:00 pm

Keller Williams Realty ~ 9355 E. Stockton Blvd., Suite 210, Elk Grove, CA 95624

Pizza, water & soft drinks provided by: Russ Colliau: United Professional Home Inspections & Yvonne Nelson: Fidelity Home Warranty

Please RSVP by 7/6/2009; 916-480-8300

Home sales in the hard-hit California market have recently reached levels that are nearly twice as high compared to when they were in the trough. Evidently the California housing market is experiencing a tipping-point phenomenon: potential buyers suddenly wanting to enter the market all at once. People have waited and waited for the best time to enter the market. Why buy now if prices will be lower later?

After having tumbled from unsustainable heights, home prices there are highly attractive and within budget for many fence-sitters. So when some buyers started to enter the market, other bystanders just couldn’t let others take advantage of the great buying opportunity. Many are now fighting to jump into the market. Multiple-bidding on lower priced homes are said to be common in California. People who “lose out” during a bidding war don’t simply go home and wipe away their tears — they come back with almost vengeance-like determination and hope their next bid will be the highest. What does that mean for home prices? Though the year-over-year price measurement will continue to show declines in California, probably for the remainder of the year, the month-to-month price trends will more likely be on an upswing.  In short, people who buy in June 2009 will likely see a price gain in June 2010. 

Many prospective homebuyers in California are becoming increasingly aware of the term Mello-Roos when looking to purchase new and used homes. For those that are unfamiliar, Mello-Roos is simply a special tax assessed to homeowners in a community as repayment for bonds used to fund the infrastructure within their community. 

For the full story go to the following website.

 http://realtytimes.com/rtpages/20090610_melloroos.htm

The proposed rate would add nine and a half percent to the price per kilowatt-hour consumed effective September 1, 2009. The monthly customer charge would increase to $7.95 per month.  Updated information about SMUD’S proposed rate increase is on the SMUD Web site: www.smud.org

Tracey and I supported the Sacramento Susan G. Komen “Race for the Cure” on May 9, 2009. This was a wonderful event, along with tremendous support for a great cause. The last I heard there were 26,000 people that took a few hours out of their day to truly make a difference. Our respect and gratitude go out to all that participated. We were proud to be involved and are looking forward to next year.

If you would like to help, please go to http://www.sackomen.org/.

I recently stayed at the Jewel Box Bed & Breakfast located at 4630 Capitola Road, Capitola, CA.  What a wonderful experience!  I would highly recommend this bed & breakfast to anyone who needs a get away.  The facility was clean, the food was excellent and the staff couldn’t have been nicer.  I accidently left my favorite perfume behind and the owner sent it to my home at no charge.  For information on The Jewel Box go to www.jewelboxbnb@gmail.com. 831-295-9035.

Join us on Saturday, May, 9, 2009 @ Cal Expo to Race for the Cure.  Register at www.komesacramento.org for the 5K race/walk or the 1 mile walk.

IT WILL HAPPEN. HOW QUICKLY IS UP TO YOU.

It’s a race against time. Someone dies of breast cancer every 75 seconds.

Imagine being able to stop this disease and its tragic consequences.

Saturday, May 9, 2009: Cal Expo

Run, Walk, Donate

Join the 2009 Komen Sacramento Race for the Cure. Experience an event that has changed the way the world views breast cancer.

GET INSPIRED
Register

BE INSPIRED
Donate

INSPIRE OTHERS
to Donate

Local Presenting Sponsor

On May 11 the price for a 1-ounce First-Class Mail stamp will increase from 42¢ to 44¢. Prices for other mailing services — Standard Mail, Periodicals, Package Services (including Parcel Post), and Extra Services — will also change. The average increase by class of mail is at or below the rate of inflation as measured by the Consumer Price Index.  Search USPS.com for more information.

For California homebuyers, tax time is now tax relief time too.  Thanks to two recent laws, a California homebuyer may qualify for $18,000 in tax credits for buying his or her piece of the American dream.  Open the link below for more information.

http://www.car.org/legal/2009-qa/homebuyer-tax-credit-chart/