National Association of Realtors FAQ on Health Care Reform

Hi there,
Been a while since I blogged here, but that's what cancer and chemo will do!
So, anywho I'll get back on ntrack here because even ifg I am a cancer patient I am still, and need to be an active and working Realtor.
There have been a lot of rumors misunderstandings about Health Care reform and how it's getting funded, so if'n you're confused or curious, maybe this will help...

This is from an E-Newsletter I get as a member of the National Association of
Realtors...

NAR Frequently Asked Questions
Health Insurance Reform
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
REALTOR® is a registered collective membership mark which may be used only by real estate
professionals who are members of the NATIONAL ASSOCIATION OF REALTORS®
and subscribe to its strict Code of Ethics
NEW MEDICARE TAX ON “UNEARNED” NET INVESTMENT INCOME
Q: Who will be subject to the new taxes imposed in the health legislation?
A: A new 3.8% tax will apply to the “unearned” income of “High Income” taxpayers. Another 0.9% tax will apply to the “earned” income of many of these same individuals. Both levies are referred to as “Medicare” taxes. (For a description of the new 0.9% tax, see separate Q&A entitled “NEW TAX ON EARNED INCOME: WAGES, SALARIES AND COMMISSIONS.”)
Q: Who is a “High Income” Taxpayer?
A: Those whose tax filing status is “single” will be subject to the new unearned income taxes if they have Adjusted Gross Income (AGI) of more than $200,000. Married couples filing a joint return with AGI of more than $250,000 will also be subject to the new tax. (The AGI threshold for married filing separate returns is $125,000.)
Q: Are the $200,000 and $250,000 thresholds indexed for inflation?
A: No. Thus, over time, more individuals may become subject to this tax.
Q: When does the new 3.8% Medicare tax take effect?
A: The new Medicare tax on unearned income will take effect January 1, 2013.
Q: What is “unearned” net investment income?
A: Unearned income is the income that an individual derives from investing his/her capital. It includes capital gains, rents, dividends and interest income. It also comes from some investments in active businesses if the investor is not an active participant in the business.
The portion of unearned income that is subject both to income tax and the new Medicare tax is the amount of income derived from these sources, reduced by any expenses associated with earning that income. (Hence the term “net” investment income.) Thus, in the case of rents, the taxable amount would be gross rents minus all expenses (including depreciation) incurred in operating the rental property. So if gross rents were $100,000 with associated expenses of $40,000, net rents of $60,000 ($100,000 minus $40,000) would be included in Adjusted Gross Income (AGI).
NAR Frequently Asked Questions
Health Insurance Reform
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
REALTOR® is a registered collective membership mark which may be used only by real estate
professionals who are members of the NATIONAL ASSOCIATION OF REALTORS®
and subscribe to its strict Code of Ethics
Q: So the new tax will apply to rents from investment properties that I own?
A: Maybe. Remember that net investment income includes only net rental income. Thus, gross rents would not be subject to the tax. Rather, gross rents would be reduced (as they are under the income tax) by all allowable expenses, including depreciation, cost of repairs, property taxes and all other expenses related to the property. AGI includes net income from rent, so if your AGI is above the $200,000/$250,000 thresholds, then the rental income might be subject to the tax. For many investment real estate owners, the net rents will be the same as or similar to the amounts reported on their Schedule E, filed with their Form 1040 Income Tax Return. (For calculations, see Q-8, below. See also Q-9 through Q-12 related to capital gain from sale of principal residence, losses on sale and to vacation homes, below.)
Q: Does the tax apply to the yearly appreciation of an asset?
A: No. Capital gains are subject to this new tax only in the year when the asset is sold. The amount of the gain will be measured in the same way that it is for income tax purposes. This rule applies to real estate and all other appreciating capital assets. Net capital gains are taxable only in the year of sale.
Q: How is the new 3.8% Medicare tax calculated?
A: The new 3.8% Medicare tax is assessed only when Adjusted Gross Income (AGI) is more than $200,000/$250,000. (See Q-2 above.) AGI includes net income from interest, dividends, rents and capital gains, as well as earned compensation and several additional forms of income presented on a Form 1040 Income Tax Return.
The tax is NOT imposed on the total AGI, nor is it imposed solely on the investment income. Rather, the taxable amount will depend on the operation of a formula. The taxpayer will determine the LESSER of (1) net investment income OR
(2) the excess of AGI over the $200,000/$250,000 AGI thresholds. Thus, if net investment income is the smaller amount, then the 3.8% tax is applied only to the net investment income amount. If the excess over the thresholds is the smaller amount, then the 3.8% tax would apply only to the excess amount.
For example, if AGI for a single individual is $275,000, then the excess over $200,000 would be $75,000 ($275,000 minus $200,000). Assume that this individual’s net investment income is $60,000. The new 3.8% tax applies to the smaller amount. In this example, $60,000 of net investment income is less than the $75,000 excess over the threshold. Thus, in this example, the 3.8% tax is applied to the $60,000.
If this single individual had AGI if $275,000 and net investment income of $90,000, then the new tax would be imposed on the smaller amount: the $75,000 of excess over $200,000.
NAR Frequently Asked Questions
Health Insurance Reform
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
REALTOR® is a registered collective membership mark which may be used only by real estate
professionals who are members of the NATIONAL ASSOCIATION OF REALTORS®
and subscribe to its strict Code of Ethics
Rules of thumb for predicting the application of this tax year to year are not readily determinable, largely because the proportion of net investment income compared to AGI will vary from year to year and from individual to individual.
Q: Will the $250,000/$500,000 exclusion on the sale of a principal residence continue to apply? A: Yes. Any gain from the sale of a principal residence that is less than $250,000 (individual) or $500,000 (joint return) will continue to be excluded from the income tax. The new 3.8% tax will NOT apply to this excluded amount of the gain.
Q: Will the 3.8% tax apply to any part of the gain on the sale of a principal residence?
A: The new Medicare tax would apply only to any gain realized that is more than the $250K/$500K existing primary home exclusion (known as the “taxable gain”), and only
if the seller has AGI above the $200K/$250K AGI thresholds.
So, for example, if the taxable gain was $30,000 and a married couple had AGI (which would include the taxable gain) of $180,000, the 3.8% tax would not apply because AGI is less than $250,000. If that same couple had AGI of $290,000, then the application of the 3.8% tax would be subject to the same formula described above. The $30,000 taxable
gain on the sale would be less than the $40,000 excess above $250,000 AGI, so the $30,000 gain would be subject to the new 3.8% tax.
Q: Is rent from a vacation home subject to the 3.8% tax? And what about the gain on sale of a vacation or rental property?
A: The application of the tax will depend on whether the vacation home has been rented out, the period for which it has been rented and whether the property is solely for the enjoyment of the owner. If the owner has rented the home out to others, then the 14-day rent exclusion will continue to apply. Thus, if the owner rents the property to others (including family members) for 14 or fewer days, there would be no net investment tax. (Note that no deductions for expenses would be available, as under current law.)
If the home has been rented to others (including family members) for more than 14 days, then the rents (minus related expenses) would be considered as part of net investment income and could, depending on AGI and the calculations described above, be subject to the new tax.
If the vacation home has been used solely for personal enjoyment (i.e., there is no rental income and no associated expenses), then a gain on sale would be treated as net investment income and could be subject to the tax, depending on AGI. Similarly, if the property had generated rents, any net gain on sale could also be included in net investment income. The amount of the tax (if any) would depend on the calculation formula, above in Q-8.
NAR Frequently Asked Questions
Health Insurance Reform
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
REALTOR® is a registered collective membership mark which may be used only by real estate
professionals who are members of the NATIONAL ASSOCIATION OF REALTORS®
and subscribe to its strict Code of Ethics
Q: My rental property generates a net loss each year. How will those losses be factored into the new tax? And what if I have net capital losses when I sell?
A: Net losses from rents and net capital losses reduce AGI. Thus, the losses themselves would not be subject to the tax. If, after losses, AGI still exceeds the High Income thresholds, the 3.8% tax would still apply if there were any interest or dividends income. (Capital losses reduce capital gains. If losses exceed gains, no more than $3000 of capital losses may reduce other income in any year.)
Note that passive loss limitations will continue to apply to rental income and loss.
Q: All of my income is derived from real estate investments that I own and operate myself. Will my rents and gains be subject to the new tax?
A: No. If the ownership and operation of real estate you own is your sole occupation, then those activities are what’s called your “trade or business.” Income derived from a trade or business is not subject to the new 3.8% tax, but could be subject to the 0.9% tax on earned income.
If the owner of rental properties has a “day job,” however, real estate investments are not considered as a trade or business, but are rather considered as investments, even if they are a major source of income. Note that many Realtors engage in business activities are that are the “typical” selling, leasing and brokerage endeavors usually associated with the term “Realtor.” If they also own real estate assets as part of their own personal investment portfolio, the rents from that portfolio could become subject to the new 3.8% tax on net investment income, depending on AGI.
Q: Is there a real estate “sales tax” or a transfer tax in the new health care bill?
A: No. There is neither a real estate “sales tax” nor a real estate transfer tax in the bill.
Q: Will “High Income Filers” lose any portion of the Mortgage Interest they are allowed to deduct?
A: No. The mortgage interest deduction is unchanged. No cap was imposed on any itemized deductions.
Q: Why is this new tax called a “Medicare tax?”
A: The revenues generated from this tax will be allocated to the Medicare Trust Fund that is part of the Social Security System. That fund is currently on shaky financial footing. The additional revenues generated from the new earned income and unearned income taxes are intended to shore up the Medicare Trust Fund.
NAR Frequently Asked Questions
Health Insurance Reform
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
REALTOR® is a registered collective membership mark which may be used only by real estate
professionals who are members of the NATIONAL ASSOCIATION OF REALTORS®
and subscribe to its strict Code of Ethics
Q: How will this new tax affect marginal (the highest) tax rates when it is combined with existing law and with the possible expiration of the Bush tax cuts enacted in 2001?
A: Marginal tax rates are the tax rates assessed on the “last” dollars included in taxable income. If the Bush tax cuts are allowed to expire, then the marginal rates for upper income individuals will increase, particularly for capital gains income. The chart below reflects the impact of those changes, presented based on implementation of current law effective dates.
MARGINAL TAX RATES – 2010 – 2013*
(Marginal Tax Bracket is Rate Imposed on Last Dollar of Income)
Year
Income Category
Maximum Marginal Rate without Medicare
Maximum Rate with
Medicare (Employee Only – 1.45%))
Maximum Rate with Medicare (Self-employed – 2.9%)
2010
(Current Law)
Ordinary Income
35%
36.45%
37.9%
Capital Gains, Dividends
15%
15%
15%
Rental Income, Interest
35%
35%
35%
2011
(Expiration of
Bush Tax Cuts)
Ordinary Income
39.6%
41.05%
42.5%
Capital Gains
20%
20%
20%
Dividends, Interest
39.6%
39.6%
39.6%
Rental Income
39.6%
39.6%
39.6%
NAR Frequently Asked Questions
Health Insurance Reform
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
REALTOR® is a registered collective membership mark which may be used only by real estate
professionals who are members of the NATIONAL ASSOCIATION OF REALTORS®
and subscribe to its strict Code of Ethics
2013
(Adds new Medicare Taxes)
Ordinary Income
(Adds 0.9% tax on Earned Income)
39.6%
41.95%
43.4%
Capital Gains
(Adds 3.8% tax on Unearned Income)
20%
23.8%
23.8%
Dividends, Interest
(Adds 3.8% tax on Unearned Income)
39.6%
43.4%
43.4%
Rental Income
(Adds 3.8% tax on Unearned Income)
39.6%
43.4%
43.4%
*Several special calculations actually increase the marginal tax rates of many upper income individuals. These include the loss of the personal exemption, loss of some itemized deductions and special self-employment tax deductions and rate adjustments. This chart does not reflect those special calculations because their impact will vary from taxpayer to taxpayer.

A pretty good MSN article on things to do around the house In Febreuary

Don’t let winter slip away without using the cold, wet weather to help you detect where your home is leaking water and heat, giving you a chance to seal it up tight and develop a wish list for energy-saving improvements. Your first order of business inside your home is to make sure no water is getting in.

Carefully check every spot where condensation or water could enter your living areas and storage spaces. Take along a pad of paper and a pencil and take detailed notes as you scrutinize ceilings, under the roof, under the eaves and along window and door frames and ventilation seals. Be particularly careful to check under toilets, sinks, tubs and showers. Use a flashlight to check the crawl space or basement walls and floors and the underside of the first-story floor. You’re looking for visible moisture and for stains caused by moisture. When you find something, the remedy will depend on the source of the leak. You may just need to recaulk around a tub or window, or you may need to call a plumber to replace a leaking fixture


Here are some other tasks to tackle inside your home this month:

Change the shower curtain. While you’re checking for leaks in the bathroom, see if the shower curtain needs replacing. Damp shower curtains can grow unhealthy mold and mildew and contribute to mold problems in the tub and shower, so swap yours out periodically and make sure to open and air out the shower enclosure when you’re done bathing.

Batten down the hatches. Find and seal energy leaks. Grab a pad and pencil to note any spots that you can’t address right away. Arm yourself with a tube of caulk to fill small cracks and a spray can of insulating foam sealer for larger gaps. Tour your home feeling for cold air entering through cracks in chimneys and window and door frames, and cracks around appliance vents, electrical and plumbing fixtures and furnace ducts. Remedies might include adding weatherstripping to a door frame or applying fresh caulk to window frames.

Run the numbers. Get an idea of how much energy a home the size of yours typically uses by entering detailed information about your dwelling into the Home Energy Saver tool. The tool lets you calculate your home’s energy use. It also lets you estimate the energy savings from a variety of improvements, such as adding insulation, replacing windows and purchasing high-efficiency appliances. Experts from the Energy Department, the Environmental Protection Agency and other state and federal agencies collaborate in sponsoring the site.

Conduct a home energy audit. If you’ve sealed the obvious leaks and your home is still inefficient, you’ll get more detailed information from a professional energy audit. The auditor can recommend energy-saving improvements and point out those that will most improve efficiency. Learn more about energy audits and how to find a professional auditor at the Energy Department’s Energy Savers site. Auditors use a blower door test, a thermographic scan and, occasionally, a perfluorocarbon tracer gas air-infiltration measurement technique to learn how weather-tight your home is. Tips: Check a contractor’s references thoroughly and check for complaints at the Better Business Bureau and your state attorney general’s consumer protection office (find your attorney general through the National Association of Attorneys General). The Energy Department advises finding a contractor who uses a calibrated blower door and who does thermographic inspections. Expect to pay roughly $300 to $500. In some cities, utility companies or government agencies do the work or help with the fees. For example, in Austin, Texas, the city utility performs and subsidizes audits so homeowners pay only $50 or $150, depending on the type of audit. Austin screens and recommends contractors, too.

Clean out storage areas. Get a head start on spring cleaning by attacking a cluttered storage space. Whether you go after the garage, attic, laundry room or garden shed, your home benefits when you get rid of rusting tools, leaking fluids and household chemicals. Start by taking everything out of the space and piling it up outside. Clean the empty space, then go through the items, trying to let go of everything you haven’t used in the last year. Make four piles: stuff to keep, trash, donations and recycling, and hazardous waste. Open paint cans to dry the paint completely before disposing. Recycle batteries so the lead they contain doesn’t contaminate ground water. Rules for disposal vary by locale. Call your waste-disposal company or the county landfill to learn where and how to dispose of hazardous waste.

Get a fire extinguisher. Better yet, get several. Buy fire extinguishers for each type of fire you might encounter at home and place them where you’ll need them. For example, use the A-B-C class for living areas and in workshops and garages. For the kitchen, get a specialized extinguisher capable of putting out class B (grease) and C (electrical) fires. For living and sleeping areas and fireplaces, get a multipurpose A-B-C that also works on fires consuming wood, cloth, trash and paper. (Read “9 tips to be prepared and stay safe in home emergencies.”) Inspect extinguishers regularly to ensure the gauges read 100%. The city of Renton, Wash., explains how to purchase, use and service and where to place residential fire extinguishers.

Outside
February is a transitional month in much of the U.S. Winter storms may continue to cause damage to home exteriors and landscaping, but spring is in sight and you can begin working in the garden to prepare for warmer weather.

Check for storm damage. While you’re outside, walk around the house looking for missing or damaged siding and shingles. Remove fallen branches and storm debris from around the house.

Clean the gutters. It’s easier to scoop up the leaves and debris in your gutters when the stuff is wet, so pull out your ladder and clean the gutters after a soaking rain. You should do this at least twice a year, but may need to do it monthly if your home is surrounded by trees. For more information, see “Gutter cleaning and care.”

Mulch garden beds. By the end of the month, the ground has thawed in many parts of the country and it’s time to start warding off weeds. If you didn’t mulch in early winter, now is the time to add a layer to discourage weeds.

Prune ornamental grasses. Clean up pampas grass and other ornamental grasses by cutting them in early spring, before new green shoots get tall. Cut the old grass about 2 to 4 inches above the new green shoots. Wear gloves and use a chain saw on big, unwieldy pampas grasses. Tackle others with pruning shears or hedge clippers. Cut straight across the top of the clump and rake away the dead stalks to clean up the plant.

How tro Negotiate your closing costs

The ever confusing arena of closing costs...
Although this article is really good, or else I wouldn't post it, it leaves out the tgechniques of negotiating your closing costs...talk to me!

How to negotiate your closing costs
By Holden Lewis • Bankrate.com

Shop around before choosing a mortgage lender, but don't stop there. When you receive your good faith estimate of closing costs, or GFE, the negotiation hasn't ended.
The lender or mortgage broker is required to give you a GFE within three working days of accepting your loan application. The GFE comes in the form of an itemized list of estimated closing costs for everything from the lender's fees to the appraisal charge to the title insurance premium to a partial month's interest payment.
The lender or broker charges some fees, and third parties charge others. The first step is to find out which are loan origination fees and which are third-party fees. Don't guess. Ask the lender or broker.
The big money question
"Say, 'Please explain to me what those fees are,'" says Jessica Cecere, director of the Consumer Credit Counseling Service in West Palm Beach, Fla.
Simple advice, but a lot of loan applicants don't follow it.

On the GFE, fees are categorized by numerical codes ranging from the 800s to the 1300s. Most of the negotiable lender-charged fees are in the 800s: application, origination, commitment, loan discount, broker, tax-related service and underwriting fees.

Keys to lower closing costs

• Ask for a justification for each lender-charged fee.
• If the lender charges an application fee, ask if it will be credited toward closing costs.
• If the lender charges an underwriting fee as well as a processing fee, ask for details of those services. Maybe you'll find a fee that can be waived or reduced.
• Recognize that some items are non-negotiable: taxes, city and county stamps, recording fees, prorated interest and reserves. On the GFE, these items are in the 1000s and the 1200s.



-- Updated: July 12, 2007



Third-party fees
Fees charged by third parties are trickier to negotiate. A few third-party fees pop up in the 800s section of the GFE: those for the appraisal, credit report and inspection. The lender is supposed to pass along these charges without marking them up. Theoretically, they are negotiable and you can ask the lender to seek good deals on these three items and pass along the savings. In practice, you probably won't get a break on those services because the lender has contracted for them at a set price.
You can realize some of your biggest savings by negotiating the items in the 1100s section of the GFE: title insurance, title search, title exam, attorney's fees and settlement fees. Most borrowers use a title company recommended by the real estate agent or lender. But you don't have to. You can shop for title insurance and settlement services, just as you shopped for the house and for the loan.
Be prepared for resistance. Some lenders have business affiliations with title companies, and they'll pressure you to keep the title work in-house.
Title insurance, settlement services
Where you shop for these title insurance and settlement services depends on where you live, because different places have different ways of closing real estate and mortgage transactions. In parts of the Northeast, closings are conducted in lawyers' offices. In some places, including Southern California, closings take place at escrow or mortgage companies. In much of the country, the closing takes place in the office of the agency that sells title insurance.
Government regulation can limit your negotiating room. In Texas, the state sets one overall fee for title insurance, title search and settlement services, so title agencies compete on service and not price. Regulations aren't as restrictive in most other states and you could save hundreds of dollars in settlement services by shopping around.
"I think it's a matter of what the traffic will bear," says Bob Moulton, president of American Mortgage, a brokerage on Long Island, N.Y. He gives this tip: If you're refinancing your mortgage, and you've lived in the house less than 10 years, ask to get title insurance at a less-expensive "reissue rate."
And don't forget to shop for hazard insurance -- item No. 903 on the GFE. Compare offers for homeowners insurance policies, either on your own or with the help of an insurance agent. Make sure the insurance company and settlement agent communicate with each other. You're not going to get that mortgage without proof that you have a homeowner's policy. That requirement is not negotiable.

-- Updated: July 12, 2007


Posted:Aug. 10, 2006

Tax Credit Extended and.......!!!!

You heard it here first folks...well, maybe...

Under a compromise reached Wednesday, the existing $8,000 credit would be extended for first-time home buyers who sign a contract for a home by the end of April 2010 and close by the end of June.

It also creates a $6,500 credit for people who buy a home but have owned a home for at least five consecutive years out of the past eight years.

The income limit would be raised to $125,000 a year for individuals and $225,000 for married couples, up from the current income limits of $75,000 and $150,000, respectively.

Thank you National Association of Realtors...you oughta be the only lobbyists allowed on the hill!!

And the news is...

59% of Home Buyers Rely on Low Down-Payment Government Mortgages
________________________________________
RISMEDIA, October 21, 2009—
The new home market is cooling down and government intervention has been a key driver to new home sales, according to a recent monthly survey of home builders, just released by John Burns Real Estate Consulting.
In addition to the tax credit that expires Nov. 30, government mortgage programs have been critical in 2009. The survey reveals that 59% of this year’s sales have been dependent on FHA, VA or USDA financing programs with 96.5% to 100% LTV.
What percentage of your home buyers this year used this type of financing?

Region Cash FHA Jumbo Other Conforming USDA VA Don’t
Insured Loans Loans Loans Know
Midwest 3% 59% 1% 18% 3% 3% 13%
Northeast 7% 41% 8% 28% 2% 6% 8%
Northwest 5% 34% 13% 31% 6% 11% 1%
Northern CA
Region 4% 68% 0% 16% 0% 8% 3%
Northern
Florida 6% 47% 2% 15% 16% 9% 5%
Southeast 7% 48% 6% 18% 3% 11% 7%
Southern
California 6% 48% 15% 19% 0% 8% 3%
Southern
Florida 22% 59% 4% 13% 0% 3% 0%
The highest use of FHA financing was reported by Northern California builders, while Southern Florida builders reported the highest percentage of cash purchases. “The cash sales are most likely due to investor purchases of attached homes,” said Jody Kahn, a vice president with the firm.
Not surprisingly, Southern California reported the largest use of jumbo mortgages. “The tough underwriting and higher pricing of jumbos has constrained sales of move-up homes,” said Kahn.
This month’s survey consists of 262 home building industry executives from public and private companies. In total, their insight is reflective of on-the-ground conditions in 86 MSAs and 1,741 communities.
“The good news for builders is that there seems to be momentum behind the effort to extend the federal tax credit and that the FHA is going to become more conservative, but not significantly curtail operations,” said CEO John Burns. “Political winds can change quickly though, so stay tuned.”
Survey Highlights:
-The average unsold, finished inventory per community decreased nationally to 2.7 from 3.7 last month. This significant decline in inventory indicates the speculative starts from the summer are being converted to closings. Regions reporting significant declines in inventory per community since last month include Southern California, the Northwest and Southern Florida.
-Average net sales per community dropped from 2.0 to 1.6 nationally, returning to levels last seen in June and July. The net sales rate declined in seven regions compared to only one during the prior month. While significantly better affordability, low conventional mortgage rates, and the federal tax credit continue to support new home sales, builders across the country are reporting declines in traffic and sales rates in September and into October. Some builders lacking entry level inventory to close by November 30th are losing sales to competitors. Seasonality is also contributing to declining sales.
-Last month’s reports of price increases in California softened this month. Pricing in Southern California is now rated flat, while Northern California pricing is decreasing. This month, Southern Florida builders rated pricing as increasing. The direction of new home prices was unchanged nationally this month, and remains hovering near flat, as builders reporting further decreases in prices offset those builders seeing flat or increasing prices.
-Builders started more homes in 4 of 10 regions, and trimmed starts in 3 regions. The Northeast, Southeast and Northwest regions are all reporting increased starts in the 8% to 9% range. The Southern Florida region reported the largest increase in starts this month. Notable declines in start rates were reported in the Midwest, Southern California and Northern Florida.
For more information, visit www.realestateconsulting.com.

The $8,000 Tax Credit deadline is approaching FAST!!!

Just a subtle little reminder that time is slipping away to ensnare the $8,000 tax credit! Yes, there are a lot of rumors out there about the Tax Credit being extended and up to $162.783, but don't believe all you read or hear, especially on FOX News.
Just a couple of things...the home purchase must be CLOSED by the end of November and the term First Time Home Buyer is dangeroyus and misleading!!!
Read on...

1. Who is eligible to claim the tax credit?
First-time home buyers purchasing any kind of home ”new or resale” are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner. A limited exception exists for certain contract for deed purchases and installment sale purchases.
2. I read that the tax credit is "refundable." What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.
For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).
3. What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
4. How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

National Association of Realtors view of the $8,000 Tax Credit expiring