Wednesday, April 29, 2009
Missoula Seminar
We are having another First Time HomeBuyers Tax Credit Seminar in Missoula tomorrow (4/30) evening at 6:30 PM at the Missoulal Public Library. We will have lots of information for you on buying your first home, on Mortgages, and the new $8,000 Tax Credit. Come on down to the library tomorrow night and we will help you get on the right track for purchasing your first home.
Thursday, April 23, 2009
Seminar a Success
Our First Time HomeBuyers Tax Credit Seminar in Hamilton was a great success. We had over 30 people in attendance and learned a lot of new things. We also learned that there is a lot of different information on a wide variety of websites. We are in the process of getting some answers on some of the questions of who qualifies in certain circumstances, especially in some unique situations. We have sent a list of questions to Washington DC to Max Bacaus's tax advisor to find out what the intent was for the law. When we get our response back from them I will post the questions and the answers that we received.
Here are is a list of great web sites for First Time Homebuyers:
www.MTHousingResources.com-MT Housing Resources is a public service offered by (MAR) that provides a searchable web site of housing related programs at the local, state, and federal levels available to homebuyers in the state of Montana.
www.cccsmt.org – Consumer Credit Counseling Service is a non profit agency that assists with credit issues and education.
www.efanniemae.com- Fanny and Freddie loan program information.
www.homeword.com-Contact information for the Bitterroot Valley Human Resources District. (Homeword class,)
Bitterroot: 360-2211
Missoula: 532-HOME
http://www.federalhousingtaxcredit.com - The best site for direct information regarding the $8,000. Tax credit:
I hope this is all helpful!
Here are is a list of great web sites for First Time Homebuyers:
www.MTHousingResources.com-MT Housing Resources is a public service offered by (MAR) that provides a searchable web site of housing related programs at the local, state, and federal levels available to homebuyers in the state of Montana.
www.cccsmt.org – Consumer Credit Counseling Service is a non profit agency that assists with credit issues and education.
www.efanniemae.com- Fanny and Freddie loan program information.
www.homeword.com-Contact information for the Bitterroot Valley Human Resources District. (Homeword class,)
Bitterroot: 360-2211
Missoula: 532-HOME
http://www.federalhousingtaxcredit.com - The best site for direct information regarding the $8,000. Tax credit:
I hope this is all helpful!
Thursday, April 16, 2009
Ravalli Republic First Time HomeBuyers Article
In today's local newspaper (Ravalli Republic) there was a great article on the First Time HomeBuyers Tax Credit Program and there was information about the new Welcome Home Program that is in the state of Montana legislature at this time. This new Welcome Home Program if passed by the legislature will assist First Time HomeBuyers with a bridge loan of up to $5,000 that can be used for their downpayment, and repaid out of their $8,000 tax credit.
Here is a link to the article from the Ravalli Republic; http://tinyurl.com/d8bufw
Don't forget to attend our First Time HomeBuyers Seminar in Hamilton on April 21st at 224 North 4th Street. Hope to see you there.
Here is a link to the article from the Ravalli Republic; http://tinyurl.com/d8bufw
Don't forget to attend our First Time HomeBuyers Seminar in Hamilton on April 21st at 224 North 4th Street. Hope to see you there.
Sunday, April 12, 2009
FIRST-TIME HOMEBUYER TAX CREDIT
In 2009, Congress increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009.
Over the next few weeks I will post some Frequently asked Questions that will help you understand the tax credit.
Tax Credits -- The Basics
1. What’s this new homebuyer tax incentive for 2009?
The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.
2. Who is eligible?
Only first-time homebuyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.
3. How does a tax credit work?
Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual’s income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of the tax due. ($9,500 - $8000 = $1500)
4. So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000?
This tax credit is what’s called "refundable" credit. Thus, if the eligible purchaser’s total tax liability was $6000, the IRS would send the purchaser a check for $2000. The refundable amount is the difference
between $8000 credit amount and the amount of tax liability. ($8000 - $6000 = $2000) Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.
If you think you qualify and want more information attend one of our First Time HomeBuyers Seminars. We will be in Hamilton at 224 North 4th Street on April 21st and in Missoula at the Missoula Public Library on April 30th. Call 363-4450 for more information on the Seminars.
In 2009, Congress increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009.
Over the next few weeks I will post some Frequently asked Questions that will help you understand the tax credit.
Tax Credits -- The Basics
1. What’s this new homebuyer tax incentive for 2009?
The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.
2. Who is eligible?
Only first-time homebuyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.
3. How does a tax credit work?
Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual’s income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of the tax due. ($9,500 - $8000 = $1500)
4. So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000?
This tax credit is what’s called "refundable" credit. Thus, if the eligible purchaser’s total tax liability was $6000, the IRS would send the purchaser a check for $2000. The refundable amount is the difference
between $8000 credit amount and the amount of tax liability. ($8000 - $6000 = $2000) Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.
If you think you qualify and want more information attend one of our First Time HomeBuyers Seminars. We will be in Hamilton at 224 North 4th Street on April 21st and in Missoula at the Missoula Public Library on April 30th. Call 363-4450 for more information on the Seminars.
Tuesday, April 7, 2009
Despite what a few are Saying, Real Estate Markets are Improving!
April is finally here and we are finally hearing some good news about the real estate industry. Don't get me wrong there are those out there that still feel that the sky is falling in.
The bottom line is there was an overreaction to the inflationary increases in real estate over the period between 2000 to 2006. As a result, real estate in most areas is now undervalued and the consumer has taken notice. This is a very good sign, as it shows that the pent up demand that we have all talked about for the past couple of years is starting to kick in.
The inventory is decreasing in our area. Sure, sellers are taking their properties off the market, but so what? Sellers have always taken their properties off the market unless they could get what they wanted. There is nothing new or revolutionary in this strategy. This will help greatly in stabilizing our market. We have 22% less inventory on the market than we did a year ago.
Sales are still slow but we are seeing increased activity as our Spring weather improves. So don't believe that the sky is falling, there is always light at the end of the tunnel.
If you have any questions on our current market or if you know someone that is interested in selling or buying real estate, please give me a call.
The bottom line is there was an overreaction to the inflationary increases in real estate over the period between 2000 to 2006. As a result, real estate in most areas is now undervalued and the consumer has taken notice. This is a very good sign, as it shows that the pent up demand that we have all talked about for the past couple of years is starting to kick in.
The inventory is decreasing in our area. Sure, sellers are taking their properties off the market, but so what? Sellers have always taken their properties off the market unless they could get what they wanted. There is nothing new or revolutionary in this strategy. This will help greatly in stabilizing our market. We have 22% less inventory on the market than we did a year ago.
Sales are still slow but we are seeing increased activity as our Spring weather improves. So don't believe that the sky is falling, there is always light at the end of the tunnel.
If you have any questions on our current market or if you know someone that is interested in selling or buying real estate, please give me a call.
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