Salt Lake City Cribs» Taxes http://www.saltlakecitycribs.com everything real estate in Salt Lake Tue, 06 Jul 2010 22:10:39 +0000 http://wordpress.org/?v=2.9.1 en hourly 1 Utah Legislature offers New Home Buyers a $6,000 Grant! http://www.saltlakecitycribs.com/utah/utah-legislature-offers-new-home-buyers-a-6000-grant.html http://www.saltlakecitycribs.com/utah/utah-legislature-offers-new-home-buyers-a-6000-grant.html#comments Tue, 10 Mar 2009 21:42:13 +0000 Marvin Jensen http://www.saltlakecitycribs.com/?p=818

capitoldomeA bill in the Utah legislature, Senate Bill 260, would give first time Utah Home Buyers a $6,000 down payment grant. This money would come from the federal stimulus package as a 10 million dollar grant to distribute for housing assistance. The money would go to more than 1,600 buyers on a first-come, first-served basis. 

Realtors and economists say this program could really help the housing market. The University of Utah’s Bureau of Economic and Business Research told the Standard Examiner the program could create 8,000 jobs in Utah’s housing sector and add $27 million in income tax revenue for the state.

This would help with the number of new homes that have been sitting on the market the last few years. If the bill is passed, it would be administered through the nonprofit Utah Housing Corporation.

]]> http://www.saltlakecitycribs.com/utah/utah-legislature-offers-new-home-buyers-a-6000-grant.html/feed 3 IRS Allows First Time Homeowners to Take Tax Credit in 2008! http://www.saltlakecitycribs.com/buyer/irs-allows-tax-credit-for-first-time-homeowners-to-take-credit-in-2008.html http://www.saltlakecitycribs.com/buyer/irs-allows-tax-credit-for-first-time-homeowners-to-take-credit-in-2008.html#comments Wed, 04 Mar 2009 16:53:46 +0000 Marvin Jensen http://www.saltlakecitycribs.com/?p=765

IR-2009-14, Feb. 25, 2009

taxdayWASHINGTON — The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.

Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.

“For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit,” said IRS Commissioner Doug Shulman. “This important change gives qualifying homebuyers cash they do not have to pay back.”

The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit, on IRS.gov. The revised form incorporates provisions from the American Recovery and Reinvestment Act of 2009. The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, income limitations and repayment of the credit.

This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.

The IRS also alerted taxpayers that the new law does not affect people who purchased a home after April 8, 2008, and on or before Dec. 31, 2008. For these taxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains 10 percent of the purchase price, up to $7,500, or $3,750 for married individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year. 

Source; Internal Revenue Service – check with your tax professional for further details, this is not tax advise!

 

]]> http://www.saltlakecitycribs.com/buyer/irs-allows-tax-credit-for-first-time-homeowners-to-take-credit-in-2008.html/feed 4 6 Changes to the NEW First-Time Home Buyer Tax Credit http://www.saltlakecitycribs.com/real-estate/6-changes-to-the-new-first-time-home-buyer-tax-credit.html http://www.saltlakecitycribs.com/real-estate/6-changes-to-the-new-first-time-home-buyer-tax-credit.html#comments Wed, 18 Feb 2009 21:39:40 +0000 Marvin Jensen http://www.saltlakecitycribs.com/?p=649

UPDATE: November 6, 2009: See updated post of the new changes here.

taxes-smallerSince President Obama signed the stimulus bill officially called the “American Recovery and Reinvestment Act of 2009″, a lot of home buyers want to know how this affects their new home purchase this year, and how is it different from the First-Time Home Buyer Tax credit passed last year? Below is a breakdown of the changes:

FIRST-TIME HOMEBUYER TAX CREDIT
As Modified in the American Recovery and Reinvestment Act
Major Modifications in Bold
February 2009

FEATURE CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008 REVISED CREDIT – EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009
Amount of Credit Lesser of 10 percent of cost of home or $7500 Maximum credit amount increased to $8000
Eligible Property Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence. No change
All principal residences eligible.
Refundable Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser. No change
Purchasers will continue to receive refund for unused amount when tax return is filed.
Income Limit Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000). No change
Same income limits continue to apply.
First-time Homebuyer Only Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase. No change
Still available for first-time purchasers only. Three-year rule continues to apply.
Revenue Bond Financing No credit allowed if home financed with state/local bond funding. Purchasers who utilize revenue bond financing can use credit.
Repayment Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing. No repayment for purchases on or after January 1, 2009 and before December 1, 2009
Recapture If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale. If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
Termination July 1, 2009
(But note program changes for 2009)		 December 1, 2009
Effective Date Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year. All revisions are effective as of January 1, 2009

chart: phoenix real estate guy

**check with your account for specific details about how this affects your particular situation**
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