Your Real Estate Connection

TAX CREDIT EXTENSION- WHAT DOES IT MEAN TO YOU?
The President has signed into law an extension of the first time home buyer tax credit and an expansion of the program to include existing homeowners. The first time buyer program was a tremendous success and the extension and expansion to allow repeat buyers the opportunity to take advantage of the tax credit will help a whole new group of home buyers consider moving up.

Details of the program are: First time 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. Income limits for this group do apply. They are for single or head of household their modified adjusted gross income must be less than $125,000. If they earn
between $125,000 and $145,000 they are eligible to receive a partial credit. Married couples filing a joint tax return have an income limit of $225,000. If they earn between $225,000 and $245,000 they are eligible to receive a partial credit.

Existing homeowners who have been residing in their principal residence for five consecutive years out of the last eight years and are purchasing a home to be their principal residence (repeat buyer) may be eligible for up to a $6,500 tax credit. Income limits for this group do apply and they are the same as under the first time home buyer program noted in the previous paragraph. The program is effective for homes purchased after November 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. All homes with a purchase price of less than $800,000 qualify, including newly constructed and resale homes. Single family detached, attached, townhomes or condominiums all qualify provided that the home will be used as their principal residence. Vacation homes and rental properties do not qualify.
This is a true credit and does not have any pay back provisions unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

For complete details you can visit ww.federalhousingtaxcredit.com.
With interest rates remaining at historic lows and the affordability of housing in our community at all time highs the tax credit is like icing on the cake. For the first time
buyer it is a great time to become a home owner and stop paying rent. For those wishing to move up it is a real plus to be able to obtain a tax credit and enjoy the benefits of buying that house you have been wishing for.

As with all good things there is an end. If you qualify for the tax credit program either as a first time buyer or someone moving up, don’t wait too long. Remember that you have to be in contract by April 30 and close by July 1 if you are going to get this benefit….
My only question is “What are you waiting for”?

    Your Real Estate Connection News and Events

  • Property Tax Relief
    The County Assessor's Office wishes to notify property owners that tax relief is available if your property's market value has fallen below its assessed value. Your property's assessed value is shown in the upper right hand corner of your current tax bill. For all practical purposes, this only affects those property owners who purchased their property at the height of the current real estate market. Under State law, (Prop. 8) a temporary reduction in assessed value can be made when the market value, as of January 1, 2010, falls below the assessed value. Once reduced, the Assessor's Office must then annually review the value of the property until the Prop. 13 value is fully restored. Consequently, a new request for review is not required if your property currently has a temporary reduction under this provision.

    If you believe this law affects you, you should file an Application for Review of Assessment with the Assessor's Office as soon as possible but no later than May 14th, 2010. You should provide your opinion of value and supporting documentation, such as comparable sales, current listings or a recent appraisal indicating the value as of January 1, 2010. Ideally, comparable sales should have occurred between 10/01/09 and 3/31/10. For apartments or other income-producing property, income and expense information should also be provided.

    You can apply for this reduction youself, for FREE, directly with the Assessor's Office. Numerous private businesses and individuals mail solicitations to property owners offering their assistance for this process for a fee. While you are certainly at liberty to use these private companies, you can apply for this reduction yourself at absolutely no cost. Contact me, Samantha Keenan, through this website or call me if you need help and I will email you the comps for free.

    Tha application is available on the Assesssor's web site at www.sdarcc.com, in all the Assessor's branch offices or by phoning the Assessor's Office at 858-505-6262.

    Property owners who apply for this temporary reduction will be notified of the results of their request no later than July. If you still disagree with the value, a formal assessment appeal process is available. This application must be filed with the Clerk of the Assessment Appeals Board between July 2nd and November 30th.
    Website:www.sdarcc.com

Upcoming Events

South Park is compliments of:
Send an EmailspacespaceView Website