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Category Archives: tax credit

Almost 65,000 Floridians claim tax credit

A report by the Government Accountability Office finds that Florida ranked third in the number of first-time buyers who qualified for one of the three IRS tax credits, with 64,879 buyers making the claim. The study includes all three credits authorized by Congress.

In dollars and cents, that means Florida residents received $455,565,365 offered under the Housing, Recovery and Assistance acts.

Still, the amount pales compared to No. 1 ranked California that had almost 117,000 claims and over $814 million returned to residents. Texas, which ranked No. 2, saw almost 100,000 claims and over $680 million in federal money. Nationwide, Americans collected about $23.5 billion and submitted 3.32 million claims, which is about $1.5 billion higher than original estimates.

Congress had passed three different versions of the credit to help stimulate the housing market.

• The Housing Act version provided a refundable tax credit, equal to 10 percent of the purchase price of a home, up to a maximum of $7,500. Taxpayers must repay the credit.

• The Recovery Act version provided a refundable tax credit equal to 10 percent of the purchase price up to a maximum of $8,000 with a waiver of the repayment provision.

• The Assistance Act version extended the timeframe in which homebuyers could claim the credit to April 30, 2010, and included several modifications, such as allowing certain long-term homeowners purchasing new homes to claim a tax credit up to $6,500.

According to the National Association of Realtors, the tax credit had a strong impact on home sales, and the last version’s expiration led to a significant drop in July home sale numbers.

Congress gives homebuyers more time to close for tax credit. Obama signs extension bills

On July 2, Pres. Obama signed into law HR 5623, the Homebuyers Assistance and Improvement Act of 2010, which extends the homebuyer tax credit closing date to Sept. 30, 2010, for qualified buyers with a purchase contract that was signed by April 30, 2010. He also signed HR 5569, which retroactively reauthorizes the Federal Emergency Management Agency (FEMA) to enter into new contracts for flood insurance under the National Flood Insurance Program through Sept. 30, 2010.

Lawmakers consider home tax credit extension

WASHINGTON – June 11, 2010 – Homebuyers may get an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.

Senate Majority Leader Harry Reid, D-Nev., said Thursday he wants to give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

The proposal would only allow people who already have signed contracts to finish at the later date. The National Association of Realtors estimates that about 180,000 homebuyers who already signed purchase agreements are likely to miss the deadline.

Reid introduced the proposal as an amendment to a bill that would extend jobless benefits through the end of November. Joining him were Sen. Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn.

The Senate is expected to take up the amendment next week. Senate Democratic leaders hope to finish work on the jobless benefits bill next week, but they have yet to secure enough votes.

Reid, who faces perhaps the toughest re-election campaign of his political career, represents a state that has the nation’s highest foreclosure rate.

The Realtors group has been pushing hard in Congress for the extension. Mortgage lenders, the trade group says, have been swamped with borrowers trying to get approved by the end of the month. Many potential borrowers are unlikely to make the deadline.

“Time is of the essence,” said Lucien Salvant, a spokesman for the group. “It’s important for Congress to get this done, because there’s whole bunch of loans that aren’t going to close on time.”

First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.

Real Estate Tax Credit (Free Money)

According to the national association of Realtors only 11% of the American public knows about the real estate tax credit. WOW! I’m shocked it so low!

If you have not heard the government is offering an $8,000 & a $6,500 tax credit to buyers who buy a home.

The $8,000 is for 1st time buyers, this doesn’t mean you have to be a true 1st time buyer an example could be own a home and moved out 3 years ago, you rent the home and have been renting for 3 years.

The 2nd credit is for people who own and want to move, example you purchased a home in 2000 and now want to move.

If you are under contract before April 30th 2010 and close on or before July 30th 2010 you could qualify for the tax credit for more info check out for more info.

If you know anyone who is renting right now, please pass this info on to them and ask them to consider buying as this is a buyers market and interest rates are low. However we are seeing in most areas of Pinellas that homes in good condition under $200,000 are going fast, homes under $100k in good condition and not short sales are like gold! No time to think or to pray, if you find something you like you need to act fast.

I’ve been showing homes to people who rent and they feel the will be saving money by buying now!

Don’t forget to check out our MLS Search from the main page. If you need any help or advice call me anytime.

Historic Kenwood Dream Home!

Now setting up showing for this weekend! With only 43 days to the end of the real estate tax credit! $8,000 for 1st time home buyers or $6,500 for move up buyers! Don’t let this opportunity slip through your fingers.

Historic Kenwood Neighborhood 3/2/2 built in 1928 for $5,000, now yours for $239,900. Real estate is a great investment, now is a great time to be a buyer!

Wake up amongst the cottage community of Historic Kenwood a place with porches, a playground & architecture that makes your heart skip a beat.2720 lines an original brick street w/ a hexagon block sidewalk & sits on a private lot w/ low maintenance landscaping.This charming Craftsman’s bungalow was awarded The St. Pete Preservation award.The renovation kept the original floor plan, wood floors, coffered beam ceilings and crown molding.The open front porch it’s double French doors & period Cuban tiles welcome you home.Feel the warmth of this home as soon as you walk in & see the brick wood burning fireplace nestled in the living room.The original windows have been rehung, the original crystal door knobs & interior door hardware is still in tact.This bungalow’s kitchen & bathrooms have been updated yet the original built-ins have been preserved.One thing about this charmer is that is has ample storage space.You will fall in love w/ the private back patio that is the perfect setting for a romantic dinner for 2 or a bustling party with neighbors. Kenwood is known for their monthly Bungalow Hoppings & very active neighborhood association. Stroll to locally owned shops & restaurants.

First Time Homebuyers $8,000 Tax Credit – New Form and Some Delays

The IRS released the form Tax credit form 5405 “first time home buyers”
What this means is there have been a whole lot of very frustrated people waiting for the first time homebuyers $8,000 tax credit. I don’t think most people buying a home anticipated the IRS would wait a little over 2 months to get the new form out, leaving people who purchased homes between Nov 6th and today unable to ammend their 2008 tax returns for the credit or file early in 2010.

Things got a little sticker today as well. Now anyone claiming the first time homebuyers $8,000 tax credit, or the step-up credit of $6,500, will not able to E-File! causing longer delays in seeing any money from the credit.
The problem is not necessarily the fault of the IRS but rather the sheer amount of scammers scamming the program. Because of the amount of false claims filed, claiming the credit now requires a few steps previously not in place Print out form 5405
-Provide proof of residency
-Provide signed HUD settlement statement
-Provided signed mortgage statement
-Provide drivers license copy
The IRS has no way to process the extra documentation, except the old fashioned way – by hand. Therefore, no e-file, and expect at least a 3 month wait for your paperwork to make it through the process and receive the credit.
Even with the delay in receiving the credit, and the extra paperwork, the credit is still and excellent way to help homebuyers.
Feel free to contact David Price with Coldwell Banker for more information on how the $8,000 first time homebuyers take credit can help you purchase your Tampa Bay FL property.

December 2009 MLS Stats for Pinellas County FL

Lot’s of great info here! Take a look at the number of active homes on the market today compared to the past couple of years. The median home price is also on the rise. If we see the unemployment rate go down we could see a much faster recovery in Pinellas County. The number of bank owned homes is also on the way down! Does this mean the end of the great deals? I don’t think so. I’ve seen some great deals in the past few weeks! Like mutiple 3 & 4 bed, pool homes in Clearwater for under $130,000!

Click on the links below and view the pdf. files.

Pinellas December 2009 All Reports: “Condo’s & Single Family”

November 09 monthly foreclosure &short sales report

You still have time to negotiate and buy a “Short Sale” property before the $8,000 first time home buyer tax credit and the $6,500 move up credit runs out! But don’t delay because what I experienced last year was at about 60 days before the end of the tax credit sellers of non “short sale” homes got a higher sold price to list price percentage because they negotiated harder with buyers because they knew that they had the only homes buyers could close on and still get the credit! The morale of the story here is if you want negotiating power, start early.

Have questions? Call or Email me

$6,500 tax credit concerns. Must current home be sold to qualify?

By Benny Kass, Tuesday, January 5, 2010.

Inman News

DEAR BENNY: My wife and I are considering a move to Arizona. As we have lived in our current townhome for six years, I am sure we would be eligible for the homebuyer credit of $6,500. What I cannot find is any reference about if and when we must sell our current home. Can we buy a replacement home by the cutoff date of April 30, 2010, then sell our current residence later in the year? Or if we make the new house our principal residence, are we required to sell our current residence at all? –John

DEAR JOHN: According to the Internal Revenue Service, you do not have to sell your current house — which must have been owned and used as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence — in order to take advantage of the new $6,500 tax credit for repeat homebuyers so long as the new house becomes your primary house.

There are, however, some additional limitations. While you do not have to purchase a home that is more expensive than your current home to qualify for the credit, if your new home costs more than $800,000, you are not eligible for that credit.

There are also income limitations. For single taxpayers, you cannot make more than $125,000 annually; for married folks, you cannot earn more than $225,000 if you file a joint tax return. There is a phase-out until your income reaches $145,000 for a single taxpayer or $245,000 for joint tax filers. This means that the credit is reduced proportionately until you reach the ceiling cap.

You cannot purchase the new home from family members, which includes parents, grandparents or children.

And finally, the purchase must take place by April 30, 2010. However, if you have entered into a binding contract before that date, you must settle (go to escrow) by June 30, 2010, or you will lose this credit.

This is my opinion; I suggest you consult your own tax advisors for specific advice.