Monday, November 30, 2009
Saturday, November 7, 2009
First Time Homebuyer Tax Credit Extended Into 2010!
First Time Homebuyer Tax Credit Extended Into 2010!
Plus...A New Tax Credit for Certain Existing Home Owners!
It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.
In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.
So Who Gets What? The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.
Additionally, the 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.
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.
Higher Income Caps in Effect 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.
Maximum Purchase Price Qualifying buyers may purchase a property with a maximum sales price of $800,000. First-Time Homebuyer Tax Credit – Frequently Asked QuestionsHere are answers to some commonly asked questions about the tax credit.
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.
What is the tax credit for first-time homebuyers (FTHBs)? 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 for the 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 do I claim the credit? For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).
Can you 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. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.
Are there other restrictions to taking the credit? Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.
Plus...A New Tax Credit for Certain Existing Home Owners!
It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.
In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.
So Who Gets What? The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.
Additionally, the 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.
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.
Higher Income Caps in Effect 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.
Maximum Purchase Price Qualifying buyers may purchase a property with a maximum sales price of $800,000. First-Time Homebuyer Tax Credit – Frequently Asked QuestionsHere are answers to some commonly asked questions about the tax credit.
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.
What is the tax credit for first-time homebuyers (FTHBs)? 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 for the 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 do I claim the credit? For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).
Can you 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. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.
Are there other restrictions to taking the credit? Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.
- You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
- You do not use the home as your principal residence.
- You sell your home before the end of the year.
- You are a nonresident alien.
- You 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.)
- Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
You 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, 2009, 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, 2006, through July 1, 2009. - Can you buy a home from a step-relative and be eligible for the credit? Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.
- Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit? Yes.
- Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years? No. However, the spouse may be eligible for the repeat buyer credit.
This is the NAR report.
Thursday, November 5, 2009
Saturday, September 5, 2009
Just put some "Tussin" on it, or WD-40!
I had a neighbor who had bought a new pickup. I got up very early one Sunday morning and saw that someone had spray painted red all around the sides of this beige truck (for some unknown reason). I went over, woke him up, and told him the bad news. He was very upset and was trying to figure out what to do probably nothing until Monday morning, since nothing was open.
Another neighbor came out and told him to get his WD-40 and clean it off. It removed the unwanted paint beautifully and did not harm his paint job that was on the truck. I'm impressed! WD-40 who knew? 'Water Displacement #40'. The product began from a search for rust preventative solvent and degreaser to protect missile parts. WD-40 was created in 1953 by three technicians at the San Diego Rocket Chemical Company. Its name comes from the project that was to find a 'water displacement' compound. They were successful with the fortieth formulation, thus WD-40. The Convair Company bought it in bulk to protect their atlas missile parts.
Ken East (one of the original founders) says there is nothing in WD-40 that would hurt you. When you read the 'shower door' part, try it. It's the first thing that has ever cleaned that spotty shower door. If yours is plastic, it works just as well as glass. It's a miracle! Then try it on your stove top..... Voila! It's now shinier than it's ever been. You'll be amazed..
Here are some other uses:
1. Protects silver from tarnishing.
2. Removes road tar and grime from cars.
3. Cleans and lubricates guitar 20 strings.
4. Gives floors that 'just-waxed' sheen without making them slippery.
5. Keeps flies off cows.
6. Restores and cleans chalkboards.
7. Removes lipstick stains.
8. Loosens stubborn zippers.
9. Untangles jewelry chains.
10. Removes stains from stainless steel sinks.
11. Removes dirt and grime from the barbecue grill.
12. Keeps ceramic/terra cotta garden pots from oxidizing.
13. Removes tomato stains from clothing.
14. Keeps glass shower doors free of water spots.
15. Camouflages scratches in ceramic and marble floors.
16. Keeps scissors working smoothly.
17. Lubricates noisy door hinges on vehicles and doors in homes.
18. Bug guts will eat away the finish on your car if not removed quickly! Use WD-40!
20. Gives a children's playground gym slide a shine for a super fast slide.
21. Lubricates gear shift and mower deck lever for ease of handling on riding mowers.
22. Rids kids rocking chairs and swings of squeaky noises.
23. Lubricates tracks in sticking home windows and makes them easier to open.
24. Spraying an umbrella stem makes it easier to open and close.
25. Restores and cleans padded leather dashboards in vehicles, as well as vinyl bumpers.
26. Restores and cleans roof racks on vehicles.
27. Lubricates and stops squeaks in electric fans.
28. Lubricates wheel sprocket s on tricycles, wagons, and bicycles for easy handling.
29. Lubricates fan belts on washers and dryers and keeps them running smoothly.
30. Keeps rust from forming on saws and saw blades, and other tools.
31. Removes splattered grease on stove.
32. Keeps bathroom mirror from fogging.
33. Lubricates prosthetic limbs.
34. Keeps pigeons off the balcony (they hate the smell).
35. Removes all traces of duct tape.
36. Folks even spray it on their arms, hands, and knees to relieve arthritis pain.
37. Florida 's favorite use is: 'cleans and removes love bugs from grills and bumpers.
38. The favorite use in the state of New York , WD-40 protects the Statue of Liberty from the elements.
39. WD-40 attracts fish. Spray a little on live bait or lures and you will be catching the big one in no time. Also, it's a lot cheaper than the chemical attractants that are made for just that purpose. Keep
in mind though, using some chemical laced baits or lures for fishing are not allowed in some states..
40. Use it for fire ant bites. It takes the sting away immediately and stops the itch.
41. WD-40 is great for removing crayon from walls. Spray on the mark and wipe with a clean rag.
42. Also, if you've discovered that your teenage daughter has washed and dried a tube of lipstick with load of laundry, saturate the lipstick spots with WD-40 and re wash. Presto! The lipstick is gone!
43. If you sprayed WD-40 on the distributor cap, it would displace the moisture and allow the car to start.
44. It cleans motor oil off of vinyl boat seats…
P. S. The basic ingredient is FISH OIL!
Another neighbor came out and told him to get his WD-40 and clean it off. It removed the unwanted paint beautifully and did not harm his paint job that was on the truck. I'm impressed! WD-40 who knew? 'Water Displacement #40'. The product began from a search for rust preventative solvent and degreaser to protect missile parts. WD-40 was created in 1953 by three technicians at the San Diego Rocket Chemical Company. Its name comes from the project that was to find a 'water displacement' compound. They were successful with the fortieth formulation, thus WD-40. The Convair Company bought it in bulk to protect their atlas missile parts.
Ken East (one of the original founders) says there is nothing in WD-40 that would hurt you. When you read the 'shower door' part, try it. It's the first thing that has ever cleaned that spotty shower door. If yours is plastic, it works just as well as glass. It's a miracle! Then try it on your stove top..... Voila! It's now shinier than it's ever been. You'll be amazed..
Here are some other uses:
1. Protects silver from tarnishing.
2. Removes road tar and grime from cars.
3. Cleans and lubricates guitar 20 strings.
4. Gives floors that 'just-waxed' sheen without making them slippery.
5. Keeps flies off cows.
6. Restores and cleans chalkboards.
7. Removes lipstick stains.
8. Loosens stubborn zippers.
9. Untangles jewelry chains.
10. Removes stains from stainless steel sinks.
11. Removes dirt and grime from the barbecue grill.
12. Keeps ceramic/terra cotta garden pots from oxidizing.
13. Removes tomato stains from clothing.
14. Keeps glass shower doors free of water spots.
15. Camouflages scratches in ceramic and marble floors.
16. Keeps scissors working smoothly.
17. Lubricates noisy door hinges on vehicles and doors in homes.
18. Bug guts will eat away the finish on your car if not removed quickly! Use WD-40!
20. Gives a children's playground gym slide a shine for a super fast slide.
21. Lubricates gear shift and mower deck lever for ease of handling on riding mowers.
22. Rids kids rocking chairs and swings of squeaky noises.
23. Lubricates tracks in sticking home windows and makes them easier to open.
24. Spraying an umbrella stem makes it easier to open and close.
25. Restores and cleans padded leather dashboards in vehicles, as well as vinyl bumpers.
26. Restores and cleans roof racks on vehicles.
27. Lubricates and stops squeaks in electric fans.
28. Lubricates wheel sprocket s on tricycles, wagons, and bicycles for easy handling.
29. Lubricates fan belts on washers and dryers and keeps them running smoothly.
30. Keeps rust from forming on saws and saw blades, and other tools.
31. Removes splattered grease on stove.
32. Keeps bathroom mirror from fogging.
33. Lubricates prosthetic limbs.
34. Keeps pigeons off the balcony (they hate the smell).
35. Removes all traces of duct tape.
36. Folks even spray it on their arms, hands, and knees to relieve arthritis pain.
37. Florida 's favorite use is: 'cleans and removes love bugs from grills and bumpers.
38. The favorite use in the state of New York , WD-40 protects the Statue of Liberty from the elements.
39. WD-40 attracts fish. Spray a little on live bait or lures and you will be catching the big one in no time. Also, it's a lot cheaper than the chemical attractants that are made for just that purpose. Keep
in mind though, using some chemical laced baits or lures for fishing are not allowed in some states..
40. Use it for fire ant bites. It takes the sting away immediately and stops the itch.
41. WD-40 is great for removing crayon from walls. Spray on the mark and wipe with a clean rag.
42. Also, if you've discovered that your teenage daughter has washed and dried a tube of lipstick with load of laundry, saturate the lipstick spots with WD-40 and re wash. Presto! The lipstick is gone!
43. If you sprayed WD-40 on the distributor cap, it would displace the moisture and allow the car to start.
44. It cleans motor oil off of vinyl boat seats…
P. S. The basic ingredient is FISH OIL!
Monday, August 24, 2009
Central Texas Economy In Perspective
For the first several months of 2009, Austin was alone among major metros in continuing to see positive year-over-year job growth. That streak ended when revised May numbers were released by the Texas Workforce Commission. The initial release of July estimates shows that our losses since July 2008 are a relatively moderate -0.2%, meaning our "best performing" position continues to hold in our major metros ranking based on percent change in nonfarm payroll jobs.
Houston's 3.1% job loss rate has put it at 18th in this ranking for July, but Dallas, Fort Worth, and San Antonio continue to place in the top 10.
If this ranking was expanded to the 100 largest metros, instead of the 50 largest, there would only be three metros outperforming Austin. Two of those metros added jobs over the last 12 months: El Paso (0.9%) and Baton Rouge (0.2%).
The median rate of loss among the 50 largest metros is -4.1%. Nationally, the difference between July 2008 and July 2009 is -4.2%, and for Texas it is -2.1%. Eleven states outperform Texas on job growth.
New York is the best performing large state with job losses amounting to only -1.9% and three divisions of the New York MSA also make the best performing metros top 10 list. California's losses (-5.0%) put it at 43rd and the state's large metros have seen losses ranging from -4.2% to -6.0%. Two of California's metros, Sacramento and Riverside, fall into the bottom quintile of the 50 largest metros. The very bottom of the ranking includes Detroit and Warren, with well known job market issues, but also Phoenix and Las Vegas, metros that, previous to this recession, had been among the fastest growing.
When we looked at the data for Austin and other Texas metros last week in @theChamber after the TWC release of this data, two sectors set Austin apart. Austin saw growth in private service providing jobs (3,200 jobs or 0.6%), where the other large Texas metros saw losses; and in goods producing industries, Austin's losses (10,000 jobs or 9.4%) were more dramatic than those seen elsewhere.
Breaking out private service providing employment for the nation's top 50 metros also shows Austin to be the only metro with positive job growth.
For goods producing industries (manufacturing, construction and natural resources), Austin's -9.4% change would rank as the 18th best. In the top 10 performing metros nationally, only Washington saw a decline in goods producing jobs as large as Austin's, however that metro is considerably less concentrated in goods producing industries than Austin and other metros.
The dominant sector buoying Austin's performance is continued growth in government jobs (5,400 or 3.5%). Other Texas metros and the nation generally are seeing those jobs grow, however Austin benefits from the relative share that the sector represents here. Among the top 10 performing metros, only Washington and Virginia Beach also have a government sector accounting for more than 20% of total employment. The average government share in the other top performing metros is about 15%.
by Beverly Kerr, Chamber Vice President of Research
Houston's 3.1% job loss rate has put it at 18th in this ranking for July, but Dallas, Fort Worth, and San Antonio continue to place in the top 10.
If this ranking was expanded to the 100 largest metros, instead of the 50 largest, there would only be three metros outperforming Austin. Two of those metros added jobs over the last 12 months: El Paso (0.9%) and Baton Rouge (0.2%).
The median rate of loss among the 50 largest metros is -4.1%. Nationally, the difference between July 2008 and July 2009 is -4.2%, and for Texas it is -2.1%. Eleven states outperform Texas on job growth.
New York is the best performing large state with job losses amounting to only -1.9% and three divisions of the New York MSA also make the best performing metros top 10 list. California's losses (-5.0%) put it at 43rd and the state's large metros have seen losses ranging from -4.2% to -6.0%. Two of California's metros, Sacramento and Riverside, fall into the bottom quintile of the 50 largest metros. The very bottom of the ranking includes Detroit and Warren, with well known job market issues, but also Phoenix and Las Vegas, metros that, previous to this recession, had been among the fastest growing.
When we looked at the data for Austin and other Texas metros last week in @theChamber after the TWC release of this data, two sectors set Austin apart. Austin saw growth in private service providing jobs (3,200 jobs or 0.6%), where the other large Texas metros saw losses; and in goods producing industries, Austin's losses (10,000 jobs or 9.4%) were more dramatic than those seen elsewhere.
Breaking out private service providing employment for the nation's top 50 metros also shows Austin to be the only metro with positive job growth.
For goods producing industries (manufacturing, construction and natural resources), Austin's -9.4% change would rank as the 18th best. In the top 10 performing metros nationally, only Washington saw a decline in goods producing jobs as large as Austin's, however that metro is considerably less concentrated in goods producing industries than Austin and other metros.
The dominant sector buoying Austin's performance is continued growth in government jobs (5,400 or 3.5%). Other Texas metros and the nation generally are seeing those jobs grow, however Austin benefits from the relative share that the sector represents here. Among the top 10 performing metros, only Washington and Virginia Beach also have a government sector accounting for more than 20% of total employment. The average government share in the other top performing metros is about 15%.
by Beverly Kerr, Chamber Vice President of Research
Saturday, August 1, 2009
The Party
Thank you, thank you, thank you; the party was a hit, we had a great time and raised a little money for Any Baby Can. There are so many people that I owe a huge thank you to for all their help.First and foremost Thank You to BartonPlace and the efforts of both Ashley LaRocca and Andrew Shaw for all their work to help me both in the planning and execution of the party. The BartonPlace Visitors Center is a beautiful space and was perfect for event. I am excited to be associated with such a professional, creative, hard working group.
Thank you to everyone that attended the party and donated to Any Baby Can. I appreciate you showing up and pitching in. I cant wait for next year.
I also want to recognize and thank the sponsors of the party:
First American Title-Laurie Nunnellee
Austin Capital Mortgage-Jeff Wilkinson
Austin Capital Mortgage-Jeff Wilkinson
Nunnelle Inspections-Kyle Nunnelle
First American Home Warranty-Kathy Kelly
Cornacopia-Nadia Elhaj
Congratulation to Dave and Lori Letourneau, they were the winners of the raffle and won a 26" flat screen donated by Jeff Wilkinson and Austin Capital Mortgage.
Congratulation to Dave and Lori Letourneau, they were the winners of the raffle and won a 26" flat screen donated by Jeff Wilkinson and Austin Capital Mortgage.See you next year!!!!!!!!!!!!!!
Monday, July 20, 2009
It's Swimmin Time!
Emma has learned how to swim and is doing an amazing job!First thing she learned was how to hold her breath (very important). Once she got the hang of that she start getting comfortable staying under and moving around in the water. We swim a lot at the Lifetime fitness in south Austin and Dick Nichols Metro Park so she is getting alot of practice.
One day about a week or so ago Emma and I were at the Deep Eddy Pool (Freezing and fun all in one!) and she picked her feet up and doggy paddle her little body straight over to me. Now i am not saying she is Janet Evens and ready to break any Olympic records, but for being 3 she is kickin butt and taken names!!!
I guess we all have the choice to sink or swim and my little lady bug decided she was going swim.
Now its my turn, being in the real estate business you have to be up for the challenge every day. I have the chance to talk to people all day about real estate and get all types of perspectives on our "Market". The truth of the matter is, it is not easy, we have challenges in the real estate industry. Their are a ton of things that can be percieved as road blocks, challenges, problems, issues, whatever your word is, it is about managing those challenges (my word) and fighting your way up stream. I am commited to my mission and to my industry and look forward to the challenges ahead and the opportunities that will be created!!
This is the most recent home i am selling for a client in Buda. It is a Beautiful Custom Built home on 2.48 acres in a gated community called Elliot Ranch. The house is a 4143 sqft, 4 bedroom, 4 bathroom two story with the master down. There are also 4 full bathrooms in the house which is very convenient for large families and house guests.
Front Foyer with Hard Tile and Granit insets.
Large Kitchen with granit counters, large center island, bay window at sink, tons of cabinets and counter space.
Wide open living room, with great natural light, built in shelving, gas fireplace.
One of the great things about this house is the upstairs, it has a huge gameroom/upstairs living as well as a theater/gameroom/pool table which give kids and adults alike to hang out and have a great time.
Large covered back padio which looks out to a very private and level 2.48 acre lot.
Check out all of my listings at benphillipsrealestate.com
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