Updates to TAX CREDITS for HOME and CONDO BUYERS in Smyrna

Who is Eligible

• First-time home buyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit. 
• Existing home owners who have been residing 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

• Home buyers 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

• The eligibility period for the tax credit is for homes 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 home buyer 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 home buyers 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.

Change your batteries when you change your clock

Change your batteries when you change your clock

Cobb Fire and Emergency Services is encouraging residents to change their smoke alarm and carbon monoxide detector batteries when they change their clocks back for daylight savings time on Sunday, Nov. 1. The Change Your Clock, Change Your Battery campaign aims to remind people of the importance of changing batteries in these life-saving devices. Prevention is key and working smoke alarms cut the risk of dying in a home fire nearly in half. Two-thirds of deaths result from fires in homes without working smoke alarms. Residents are also reminded that smoke alarms should be replaced at least every 10 years and tested once a month to ensure they are working. For more information, including simple home safety tips, visit cobbfire.org.

The Home Buyer Market... A difference a 1 year makes

ONE YEAR AGO…
It started with a trickle of failed sub prime loans and without warning, the dam broke unleashing a torrent of failed mortgages and foreclosures. Last year at this time, the mortgage markets were frozen, housing values were plummeting, the stock market was in free fall, Lehman Brothers crashed and burned, and the financial infrastructure of the United States was teetering on the brink of collapse. Foreclosures, bank failures, 401-K’s turned to 201-K’s, and the impending Great Depression was the story of the day.
What a Difference a Year Makes! “The Cavalry Arrived.”
TARP (Trouble Asset Relief Program) is a $700 Billion relief initiative that was supposed to purchase bad loans in order to keep the banks liquid. It was soon determined that this was a bad use of the funds because the banks didn’t like being told what to do. So eventually we got around to using the money to make a market of cheap money so that everybody could refinance or purchase with a very affordable house payment; we went to Main Street with Main Street’s money (the taxes we pay). Imagine that! And… it’s working. 201-K’s are back to 301-K’s, the stock market has regained some strength, the housing market is stabilizing, and Bernie Madoff and a bunch of others are in jail.
What’s Next?
The Good News- The Home Buyer Credit of $8000 will most likely be extended until June. Thus far the Credit has caused a demand for houses priced up to $250,000. Make no mistake, The Home Buyer Credit is providing the impetus for the sudden surge in sales.
The Challenge- Many people are waiting to sell, and then buy, when values go back to the peak. Tell them, “If you can wait until 2023, go ahead.”
The Reality- The window of opportunity is narrowing. The Home Buyer credit will end, mortgage rates will rise, and home selection will dwindle. People are scared to act so it is our job to provide them knowledge that will help them. Perhaps getting one of our job loss insurance policies will do the trick…