Tuesday, November 10, 2009

2010 Home Buyer Tax Credit Extension - ALL THE DETAILS!!

Following are full details on the 2010 Tax Credit Extension.

Homebuyer Tax Credit Update!

On November 6, 2009, President Obama signed a bill to extend the tax credit for first-time homebuyers (FTHBs) through June 30, 2010. The bill also opens up opportunities for others who are not buying a home for the first time.

To learn what the new tax credit means to you and your clients, take a look at the concise overview below.


Who Gets What?

First-Time Homebuyers (FTHBs): First-time homebuyers (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 Homebuyers (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 Homebuyers 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 homebuyer 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 Homebuyers 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.

Friday, October 30, 2009

Lofts At Belmar

Congratulations to clients Josh & Lisa who closed on their Loft in Belmar today! They are first time home buyers with a wonderful new loft home - complete with a beautiful granite/stainless kitchen, parking, vaulted ceilings, lofted master bedroom, walk-in closets & soaking tub. This home is a great one to call their first - all the best to the two of you!

Tuesday, October 27, 2009

2010 Tax Credit?!?

Still unofficial, but the news is looking good! Check out the following link to read about the latest on extension of the 2009 Buyer Tax Credit!

Read Article

Thursday, October 8, 2009

Another First Time Home Buyer Qualifies for 2009 Credit!

Congratulations to client Amy, who just closed on a property in the heart of the Highlands neighborhood. This was a wall-to-wall remodel, with a one car garage, slab granite/stainless kitchen and beautiful designer touches. What a great first purchase - congratulations to Amy!

Friday, October 2, 2009

Just Listed in Littleton!

Come Home To This Popular Ranch Model in Summerlane Village—Just Blocks From Marston & Bowles Reservoirs! Dramatic Archways & High Ceilings Are Bathed In Natural Light! Beautiful Kitchen With Stainless Steel Appliances & Eating Area. Formal Dining Room, Cozy Family Room With Gas Fireplace! Custom Patio Perfect For Outdoor Entertaining ~ Complete With Low-Maintenance, Eco-Friendly Yard!

Large Master Bedroom Features Huge Windows And 5-Piece Bath With Oversized Walk-In Closet & New Travertine Floors! Shows Beautifully—Call Today For A
Private Showing! Priced To Sell!

Thursday, October 1, 2009

Thursday, September 10, 2009


Check out this fantastic Ranch Home in Littleton, CO
4882 S. Zephyr Street - See www.4882sZephyrSt.info for more photos!

Tuesday, August 11, 2009

Charming Brick Ranch in Athmar Park

Congratulations to Matt & Angie of Denver - first time home buyers who purchased this brick ranch in Athmar Park. Centrally located, this home boasts a two car garage, wood burning fireplace, completely renovated bath, and original wood floors. Located on a great block, too! All the best to the two of you.

Saturday, July 4, 2009

Blueprint Denver

All of the building codes in Denver are on the verge of changing... and this will impact everyone! Check out this link to the new code website, where you can read about changes, view neighborhood maps, and find out about meetings, etc. regarding this Blueprint Denver planning process.


Thursday, May 28, 2009

Modifications to First Time Home Buyer Tax Credit

First time homebuyers in 2009 have already been among the luckiest in recent years... getting a lot of house for their money, and also qualifying for the 2009 First Time Home Buyer Tax Credit. However, new changes are on the horizon that might make home buying even more attractive for those considering their first home purchase.

FHA is working toward a new program which would allow buyers to use the $8,000 tax credit upfront (meaning they could apply it to their down payment)! This means than an FHA borrower might be able to buy with little money down once again - and this tax credit never has to be repaid.

Buyers must purchase a home before Decemeber 1, 2009 in order to qualify for the credit. Read an article about this program from the Wall Street Journal here.

Sunday, May 24, 2009

Your Home is Worth More Than You Think!

This is a great article from this month's issue of 5280 Magazine. They name 8 neighborhoods in Denver that actually APPRECIATED... imagine that!

Is yours one? Click here to read the whole article!

Thursday, May 14, 2009

Capitol Hill Gem

Congratulations to Erika G. of Denver, who scored this gorgeous remodeled condo in Cap Hill! This was a first time home buyer purchase to be proud of... complete with parking space, wood burning fireplace, walk-in closet, remodeled kitchen & bath and in one of the hottest locations in Denver!

Friday, April 17, 2009

Fantastic Park Hill Remodel

Congratulations to client Justin C. of Denver - who as a first time home buyer landed this awesome Park Hill remodel. Justin got a real deal on this place, and should be proud of his 10K in instant equity! His new home is complete with a granite/stainless kitchen, 2-car garage, and an amazing location just minutes from downtown. Justin, we wish you all the best in your new abode!

Want to learn more about how you can find a home with instant equity? Contact me!

Sunday, March 1, 2009

2009 Buyer Tax Credit

If you have heard people talking about the new home buyer tax credit, but want to read the details for yourself... click here for a great informational website. Feel free to contact me for more information if you like!

This is a once in a lifetime opportunity to get a major tax credit on the purchase of a home - and the bonus is - it NEVER has to be repaid like prior versions of the tax credit. This is a GREAT time to be a first time home buyer!!

Tuesday, January 20, 2009

Just Listed! Beautiful Victorian in Highlands Neighborhood!

Check out this home in more detail at:
Don't miss this beautiful Victorian.
Original Features galore, with all the modern amenities...
3 Bed / 2 Bath
2 Car Garage
Large, private yard
A/C & New Heating System
Granite/Stainless Kitchen
Remodeled Baths
Jetted Tub


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