You've Got 15 More Days To Use The First-Time Home Buyer Tax Credit

The government’s First-Time Home Buyer Tax Credit program expires November 30, 2009 — a scant 60 days from today.

Considering it can take up to 60 days to close on a home, first-time buyers have 2 weeks at most to find a home.

Buyers not under contract by October 15 have little chance of meeting the November 30 deadline and, therefore, little chance of claiming the tax credit.

This is especially true for purchases involving short sales and foreclosures.

Congress passed the First-Time Homebuyer Tax Credit program as part of the 2009 economic stimulus plan. IRS Form 5405 outlines the program criteria which include the following stipulations:

• Buyer may not have owned a “main home” in the past 36 months
• The home may not be purchased from a parent, spouse, or child
• Adjusted gross income for the household must be below $95,000 for single tax filers and $170,000 for joint tax filers

The credit is capped at $8,000 or 10% of the purchase price, whichever is less. And don’t forget — the First-Time Home Buyer Tax Credit is a true tax credit. It’s not a deduction.

This means that a tax filer who claims the full $8,000 and whose “normal” tax liability is $5,000 would receive $3,000 cash from the US Treasury when their tax return is processed by the IRS.

If you can’t close by November 30, 2009, though, you can’t claim the credit.

The clock is ticking. If you’re planning to use the First-Time Home Buyer Tax Credit, the time to act is now.

Posted: Thursday, October 1, 2009
www.brokeragentsocial.com

Washington Report: Tax Credit Changes

The first major change to the $8,000 home buyers tax credit began moving through Congress last week, giving hope to real estate and building groups pushing for extension of the entire program before it expires Nov. 30.

House Ways and Means Committee chairman, Congressman Charles Rangel, a New York Democrat, combined several smaller bills into the “Service Members Home Ownership Act of 2009” late last week, with a floor vote expected this week.

The bill is intended to correct a flaw in the original tax credit legislation: By requiring buyers to occupy and own their first home for 36 months to fully qualify for the credit, the program creates serious problems when military, Foreign Service and intelligence agency personnel are transferred overseas.

During their absence, they are not occupants of their houses, and sometimes have to rent them out or sell. Any of these events make them ineligible to retain the $8,000 credit under current law. Ineligible buyers must then repay the credit to the IRS.

Oregon Congressman Earl Blumenauer, sponsor of one of the bills consolidated into Rangel's, said “it is absurd that thousands of Americans serving our country, away from friends and family ... must choose between their service work and home ownership.”

The Ways and Means committee's bill would waive the repayment requirement when a service member must sell a home within the 36 month period because of a transfer to a new duty station or overseas, and would count service-related absences toward the 36 month requirement.

Another provision in the bill would extend the $8,000 credit for another year for personnel who may have missed out on claiming the credit because they thought they wouldn't qualify due to an overseas posting.

The credit for these individuals would be extended to November 30, 2010 from November 30, 2009, provided the served outside the U.S. for at least 90 days during calendar year 2009.

The bill, which has bipartisan support, could be sent to the Senate for action as early as next week, Congressional sources told Realty Times.

More important for the housing market overall, however, is the precedent set by the bill's extension of the credit for an extra year. It's not a far leap from that position to a general extension of the entire $8,000 credit program to the same date.

The National Association of Realtors, National Association of Home Builders and the Mortgage Bankers Association jointly sponsored an ad campaign last week aimed at convincing Congress to give the credit program another year.

Realty Times will keep you on top of this fast-moving issue as it develops.

Published: September 21, 2009

by Kenneth R. Harney

Realty Times- Washington Report

Property Taxes Are Coming Due!!

Don't be caught by surprise when that tax bill arrives! Cook County Residences can expect theirs in the near future. For more information from the county click on the link above. Past and future customers can also contact our offices with any further questions.

Daley urges extension of property tax cap

From the Crain's Chicago Business Newsroom
Mayor to send letter to Springfield urging action
August 02 16:56:00, 2006
By Lorene Yue
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(Crain’s) — Mayor Richard M. Daley is pressing the Illinois General Assembly for quick action to extend a cap on annual property tax increases.

At a Wednesday press conference, Mr. Daley said he will send a letter to Governor Rod Blagojevich and state legislative leaders asking the lawmakers to craft a solution to Cook County’s property tax issue and put it to a vote during the fall session.

"I believe it will be unacceptable to the homeowners and taxpayers of Chicago if Springfield stands by and does nothing while residents feel the burden of higher taxes which could have been controlled by the legislature," Mr. Daley said, in a statement.

Senate President Emil Jones Jr. (D-14th District) has not received Mr. Daley’s letter, said Cindy Davidsmeyer, spokeswoman for Mr. Jones.

"The Senate voted for it," she said. "The [Senate] president supports it."

Mr. Daley and Cook County Asssessor James Houlihan, who pushed for the original cap, were able to get the extension pass the Illinois Senate, but not the House.

House Speaker Michael Madigan (D-22nd District) was not available for comment.

Three years ago, state lawmakers authorized a 7% annual cap on increases to the equalized assessed valuation, which is used to calculate property tax bills.

Related story: The 7% solution

That law is set to expire this year and proponents have tried to extend the cap for another three years. Cap supporters have said that homeowners, who saved an estimated $200 million to $300 million, could see their property taxes double without the extension.
But their efforts have been stymied in part by Mr. Madigan, who has said that the cap shifts the tax burden to businesses.

The election for city mayor is next year.My Scalar==1

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