National Association of Realtors reported home sales in October rose to the highest level since February 2007. Up 10.1% from last year

Today agents of RE/MAX North donated 966 pounds of turkey to the Chittenden Emergency Food Shelf. I’m proud to work with such generous people

Homebuyer Tax Credit Extension – April 30, 2010

WHO IS ELIGIBLE

• First-time homebuyers, who have not owned a principal residence in
the last three years may be eligible for up to an $8,000 tax credit.
• Existing homeowners who have resided in their principal residence for
five consecutive years out of the last eight and are purchasing a home to
be their principal residence (“repeat buyer”), may be eligible for up to a
$6,500 tax credit.
• All U.S. citizens who file taxes are eligible to participate in the program.

INCOME LIMITS

Homebuyers who file as single or head-of-household taxpayers can claim
the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers)
if their modified adjusted gross income (MAGI) is less than $125,000.
• For married couples filing a joint return, the combined income limit
is $225,000.
• Single or head-of-household taxpayers who earn between $125,000
and $145,000, and married couples who earn between $225,000 and
$245,000 are eligible to receive a partial credit.
• The credit is not available for single taxpayers whose MAGI is greater
than $145,000 and married couples with a MAGI that exceeds $245,000.

EFFECTIVE DATES

• Homes must be purchased after Nov. 6, 2009, and before May 1, 2010.
However, home purchases subject to a binding sales contract signed by
April 30, 2010, will qualify for the tax credit provided closing occurs prior
to July 1, 2010.

TYPES OF HOMES THAT QUALIFY

• All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation
home and rental property purchases do NOT qualify.

TAX CREDIT IS REFUNDABLE

• A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.

FOR EXAMPLE:

• A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time homebuyer tax credit).
• A repeat buyer who owes $5,000 would pay nothing to the IRS and receive
$1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit).
• All qualified homebuyers can take the tax credit on their 2009 or 2010
income tax return.

PAYBACK PROVISIONS

The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

posted by Bill Desautels P: (802) 655-9100 (800) 639-4520 x217 F: (802) 655-0400 E: condoguy@condoguy.com The Condo Guy – Vermont condo real estate The Condo Guy has been providing advice to buyers and sellers of Vermont condos real estate for nearly 30 years.

Why did it take my allergist 10 years to have me switch from Allegra at $1/pill to AllerClear at Costco which cost a nickel each? $3500 flushed

4 mile run at 6:30, great way to start the day, no one was out running at that hour, just me. Somehow the world seems at peace at dawn, no clatter, no rushing. I like that.

Many homebuyers have questions about changes & enhancements to the Homebuyer Tax Credit. Find out details of changes on my Condo Guy Blog.

NEW Changes to Homebuyer Tax Credit

posted by Bill Desautels P: (802) 655-9100 (800) 639-4520 x217 F: (802) 655-0400 E: condoguy@condoguy.com The Condo Guy – Vermont condo real estate The Condo Guy has been providing advice to buyers and sellers of Vermont condos real estate for nearly 30 years.

Buying Real Estate Through IRA Funds

Bad memories of the bear market and frustration over low rates of return have many investors looking to purchase real estate from their retirement savings. Many investors are using their retirement funds from IRAs to buy real estate.

Yes it’s true. You can buy real estate property through funds in your IRA but you need to know the transaction is very complex and not as easy as you might think. The numerous rules and the likely hood of miss-handling the transaction can disqualify your tax-deferred status and force you to pay tax on its full value plus penalties. If you want to invest in real estate in your IRA you need to exercise caution and find the proper guidance with a real estate broker and investment counselor.

Owning property inside an IRA forgoes the traditional tax advantages of investing in real estate. You can’t deduct property taxes or mortgage interest, and you can’t use depreciation. When you sell the property, a traditional IRA turns profit into ordinary income rather than capital gains. Also, your IRA must have enough spare cash to pay such property-related expenses as maintenance costs, taxes and management fees because all income must flow into the IRA and all expenses be paid out of it.

1. You need to identify a property you want.
2. Next you have to find an IRA custodian that allows real estate investments. There are only a few IRA custodians who can handle this transaction nationwide. Your local bank or lender will not be qualified to do this.

An example is taking money from your IRA and using it to purchase a single-family home. Let’s say you have to spend $15,000 to remodel the house and then decide to sell it within a year for a $20,000 profit. The remodeling costs came out of your IRA and the profit on the sale of the property goes back in along with the principle withdrawal. In another case a buyer used $50,000 in an IRA as a down payment on a six-unit apartment complex. The rental income flows back into the IRA. Because the investment was an apartment building or commercial space, you’ll need to hire a property manager to collect rents and maintain the building. Depending on the IRA custodian, you may have to pay a transaction fee every time you authorize a check to pay a plumber or your property taxes.

This touches on just a few of the many scenarios that can apply to purchasing real estate through and IRA. These types of transactions are possible but very complex. Do not rush into this process without the property guidance from qualified professionals.

Check out the link at Money Central for more detail information.

posted by Bill Desautels P: (802) 655-9100 (800) 639-4520 x217 F: (802) 655-0400 E: condoguy@condoguy.com The Condo Guy – Vermont condo real estate The Condo Guy has been providing advice to buyers and sellers of Vermont condos real estate for nearly 30 years.

When The Condo Guy blew out the candles on his birthday cake the smoke detectors in the restaurant went off. Happy 50th

Working on my beach access, I will be boating in the spring. After 7 years here, it’s time!