The Federal Tax Credits Blog

Posts Tagged ‘money’

Question: How will the crisis among sub-prime borrowers affect the housing market and the overall economy?

The American economy is driven first and foremost by consumer spending. Some think that this crisis will trickle down into the rest of the economy and snag businesses and people who have poor credit ratings and limit everyone’s ability to finance large purchases, thus hurting those who are selling those large purchases, thus… well, you can see the dominos… Also, the net worth of the average consumer is sliding as the value of his home corrects. Others believe that this is far smaller than past crises such as the S&L shakedown during the 80’s. The economy then barely burbed. Please give me your opinion, and more importantly, direct me to an interesting article on the subject.

Oh, and one more thing, New Jersey, your property taxes are atrocious, and I’m leaving your economy by the end of the year.

Answer: As I have been stating for the last six months, it is not just the sub prime market, that was the beginning, now we are seeing the Alt-A, and the prime market taking a hit. The hit will be more pronounced in the next few months as the ARM’s are getting ready to adjust. Consumer spending drives the economy but what happened is housing inflated at double digit rates, energy has doubled, income has only gone up an average of 3.9%, and people treated their homes as giant ATM machines, now the bills are due. The artificially inflated worth of homes compared to rise of income is similiar to the dot com bubble of 10 years ago, and has now come home to roost. The tightening of credit put less buyers in the market, yet the foreclosure’s put more homes on the market leading to depreciating worth. It’s a cycle. Now we see the economy loosing jobs. We are heading into a recession, the naysayers have been blaming the lenders, and the sub prime market but it goies well beyind that.

New rules, big changes coming for financial world

Big changes are in store for the financial world from a government crackdown more than a year in the making.

Tax Credit for First Time Home Buyer Mortgage, $8000 Government Assistance Program for Home Finance

Question: Will there be a 2009 tax stimulus rebate?

I know this has already been asked, but most of the answers are from 3 months ago. I see websites saying will get a tax credit next year and others saying we’ll get a check and others saying we get nothing at all except a TINY bit less taken out on our taxes. So what is it really?

Answer: None of the above.

Obama released his stimulus plan, and they mostly are tax credits for buying things that will stimulate the economy. That means you will pay the government less in income taxes if you purchase certain items. For example, if you are buying your first house, you will pay $8,000 less in income tax for 2009. If you install a solar system or wind generator on your house, you will pay $3,500 dollar less in taxes, depending on how much your wind / solar system cost you. Buy a brand new car off of the show room floor, and you will pay less income tax equal to the amount of state sales tax you paid on the new car.

So on almost all of the tax breaks, you must first purchase something to stimulate the economy. If you don’t purchase anything, you don’t get the tax break. So Obama’s plan basically benefits only those wealthy enough to purchase expensive things.

The amount of with holding ( taxes taken out of your pay check ) was reduced. But the tax schedules were not lowered, so you will have to pay taxes on the money not with held from your pay check at the end of the tax year. That gives you a few dollars more to spend, but you should be saving those few dollars to pay back at the end of the tax year.

Most people don’t realize that with less money being with held out of their pay check, at the end of the year, the may have to pay money to the government to meet the taxes owed. They won’t get a refund because less money was taken out of their pay checks.

Brazil State Bank Rejects Calls to Curb Lending

Brazil’s state development bank President Luciano Coutinho rejected criticism that record lending is placing a burden on the central bank to keep inflation in check and slowing the reduction of public debt.

Recovery: Vehicle Tax Deduction – June 09

Question: Can you claim child tax credit and still work part time? (UK)?

I know when I’m on maternity leave I can claim child tax credit and my partner can claim working tax credit, but once my maternity leave is over can I still claim child tax credit if Im working 6 hours a week?

Im abit unsure and confused about it all. What can I claim?

Answer: Yes you can still claim child tax credit. It isn’t related to working hours you just have to be the main carer for the child. You should be able to claim the family element, and new baby element after your little one’s born.

Your husband can still claim his working tax credits as long as your total household income doesn’t go over the threshold (£13K I think – may have gone up since I worked with people claiming tax credits).

UK makes sharpest cuts in decades in new budget

Britain’s Treasury chief unveiled on Tuesday the toughest cuts to public spending in decades, a raft of tax rises and a new levy on banks in an emergency budget aimed at restoring the country’s ravaged public…

Welfare Benefits and Tax Credits Handbook 2009-2010 $75.67 …

Welfare Benefits and Tax Credits Handbook 2005/06 $68.20 …

Tax Tip 10: Working Tax Credits – you may qualify

Question: can i qualify for $8000 tax credit if my parent is primary borrower but i am on sales contract and loan?

i am going to grad school so my income will not qualify me. this is first time home purchase and i will live there for at least 4 years. my mom can qualify for the loan and put me on as a purchaser on the sales contract. i would also be on the loan if necessary. Can i qualify for the tax credit under these conditions? thank you.

Answer: Probably not – sounds like your mom is really buying the house, not you.

BofA NY headquarters loan in unique CMBS, muni deal

A debt package tied to a New York office tower will be the first of its kind to tap property securitization and public finance markets together, sources close to the deal said on Monday.

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The Mortgage Encyclopedia: The Authoritative Guide to Mortgage Programs, Practices, Prices and Pitfalls, Second Edition $13.85 The bestselling one-stop guide to mortgages—updated for the post–housing crisis market! The Mortgage Encyclopedia demystifies all the various mortgage terms, features, and options by offering clear, precise explanations. Fully updated to address the new realities introduced by the housing crisis of 2007, The Mortgage Encyclopedia provides not just a complete description, but als…

CRAMDOWN: Renegotiating Mortgages, Car Loans, Student Loans, Credit Card Debt, Taxes & Other Obligations in the Age of Wall Street Bailouts $9.95 This fall, Silver Lake Publishing is “crashing” into retail stores a new book on loan mods and other renegotiations. CRAMDOWN: Renegotiating Mortgages, Car Loans, Student Loans, Credit Card Debt, Taxes & Other Obligations in the Age of Wall Street Bailouts follows in the series that has included the national bestsellers Identity Theft and Scams & Swindles. This is the first comprehensive book …

Tax Credit for First Time Home Buyer Loans, FHA and Government Mortgage Incentive Program

Question: Can someone fill me in on what the homebuyers tax credit is?

I have heard it is $8,000.00 & I have heard it is $15,000.00 Which one is it really?And can anyone send me a website or something that tells about it. We are in the process of looking for a home and I want to make sure we don’t miss out. Thanks!

Answer: This is the IRS site with info on FTHB credit. Basically it is $8,000 free money if you qualify as a first time home buyer by 12/1/09.

http://www.irs.gov/newsroom/article/0,,id=204671,00.html

New Berlin affordable-housing project wins tax credit funding

A plan to build apartments for lower income people in an affluent area of New Berlin has won a key part of its financing: federal tax credits that were awarded Friday by a state agency.

Money March 2010 The 20 Best Money Websites, 12 Ways to Slash Your Tax Bill, Bargain Stocks, Credit Card Traps, $3.95 …

In Arapahoe: Matthew 9, 1-8. $3.99 “Excerpt from the book…”1 Nane´he yehat thewo´ne’, na chebexa´ta’, na hei´xchahete´ten.2 Na naha´bee, heix chato´na hisi´bine´nin, seese´nenhaa´be’. Na tonaha´to’ Chesus hiti´thawotate´nin hetha´thisi´bine´nin. Na´hee, hithatha´tacha, hawoxta´tenakano´uteni’….

Beat The System: How to Avoid Being Deceived and Over-Charged by Greedy Corporations $12.99 Does every financial transaction you make always seem to end up costing you more than you originally anticipated? Are you tired of greedy corporations taking your hard-earned cash by using unfair business practices? If you are too busy or even just too tired to read the small print of every document you sign but hate being duped into buying things you don’t need and paying too much for th…

First Time Homebuyer Tax Credit – UPDATE!