The Federal Tax Credits Blog

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Question: Would you enter the housing market as a first time home buyer with the new bill that has been passed?

The housing bill is offering a $7500 tax credit for all new first time home buyers if they buy before july of ‘09. Do you think I should jump on this, or wait until home prices drop more?

Answer: I am thinking about it, but I need more info. I have tried looking up at cnnmoney, msn money, yahoo finance for additional info, all with no luck. I make over 80,000 a year with my two jobs. Usually, there is an income limit. If there isnt a limit, or I qualify for the full amount, I am definitely thinking about it. I have a lease expiring in Sept. I am thinking of renewing for only 6 months and starting to save up as much cash as possible and try and make a move in March or April.

If it is every first time homebuyer gets the full credit no matter the cost of the house or their yearly income, count me in. There are nice 2 bedroom houses going for 100,000 in my neighborhood.

If I saved 7500 in taxes, that is 7.25% of the value of my house. I could take the rebate (tax credit) and apply it all to the house. Say I put 15,000 down, I will be at 85,000 mortgage. Than, an additional 7500 9 months later (when I get the rebate) I will be down to 77500 and have 23,000 in equity (not including the payments I will make over the first year).

Market gets liquidity boost with cut in delivery period

The State Securities Commission plans to boost stocks liquidity by loosening restrictions on the sale of equities this month, said its chairman Vu Bang.

66Talking ED – New Market Tax Credit v2.mov

Question: Am I eligible for the first-time homebuyers tax credit if my parents co-sign on my mortgage?

I recently accepted an offer on a $129,000 condo. My parents have co-signed the mortgage agreement. Will I still be eligible for the $8,000 tax credit? Thanks for your help!

Answer: Yes.

However, you must be at least 18 and have income sufficient to make the payments.

Benny L. Kass Mailbag

Consider refinancing to pay credit debt Q:We will soon have our mortgage paid off. Our home is valued at $120,000. Unfortunately, we owe about $50,000 in credit-card debt. I took early Social Security and work part time. My husband will take full Social Security next March and continue to work full time. So we had planned to pay extra on the debt with his Social Security check and the fact that …

$8000 Mortgage Tax Credit

Every businessman understands that Corporation is a completely normal step in the development of his business. Other forms of partnership like joint ventures not so many potential advantages as the corporation so at certain moments of business development starting a corporation is a great solution. After creation of your corporation you need to solve a number of serious questions, set up and organize your corporation properly to create an effective and profitable corporation. An experienced corporate lawyer is usually the person who will help you the most. Naturally the most important things in any corporation are shares. When you establish a corporation you need to specify the class of shares. There are three classes of shares: voting common shares, non-voting common shares and preferred shares. Most of the corporations in Canada are created with a single class of Common Voting Shares.

Voting Common Shares

The holders of common shares usually can elect a Board of Directors, which will run the corporations, by a simple majority. They also have the right to alter the Memorandum, Articles or Bylaws of a Corporation and are entitled to participate in distribution of profits of the Canadian Corporation.

Non-Voting Common Shares

Holders of non-voting common shares are like the holders of voting common shares to participate in distributions of profits of the Corporation, but they have no right to vote.

Preferred Shares

This class can be voting or non-voting. The main feature of preferred shares is a wide array of potential preferences over common shareholders. This type of shares is often used to attract additional capital to Canadian Corporations. Very often the holders of these shares have a priority on the return of paid up capital in the event of the winding up or dissolution of the Corporation. Also the holders have the right to receive a dividend at fixed, or floating amounts, and a right of redemption, under this right the Corporation is required to buy back the shares from the holders.

After you chose the type of shares choosing who will participate in your corporation is the second important question. There is always a possibility to offer participation to unknown investors, but very often it is overpowered by the temptation to include family members and loved ones as Shareholders, Directors or Officers in a Corporation. In some cases building your corporation on family bonds is a good decision, but sometimes if you family has a part of shares they can influence the board of directors and block their decisions if they disagree with you. Also choosing partners is a very important decision. As a sad example Steve Jobs, the founder of Apple was fired from the corporation by the Board of Directors in the early 90th. The third important moment in creating a corporation is capitalization. Funds can be obtained from various sources like investment or loans from Shareholders or Corporation Borrowing for example. In each of these types the young corporation borrows money and then repays it from profits.

MARKETS

OUTLOOK: ‘2010 to be a positive year for Indian equities’ A base case scenario of 19,000 and an optimistic target of 22,000 is Credit Suisse’s outlook for the Sensex in 2010. If that sounds attractive, be warned, the investment journey may not be as easy as 2009, when one in two stocks in the BSE 500 …

$8000 First Time Homebuyer Tax Credit Update

Question: First Time Home Buyer Credit and Revised Legislation 2009 Stimulus?

Recently my husband and I bought a house (Nov 2008). We are eligible to receive the $7500 tax credit with paying the amount back over 15 years. I recently read that there is a 2009 bill in the House(see below link) that modifies the terms of the tax credit and that if passed the tax credit would not have to be paid back. My question is would I still be eligible for these revised terms given that purchased my home last year. Also should we continue with filing our taxes now, or wait to see what happens with this bill. Thanks.

http://money.cnn.com/2009/01/29/real_estate/tax_credit_near/index.htm

Answer: Neither the House nor Senate version of the bill makes the changes to the $7500 tax credit (not having to repay it) retroactive to November. Its only retroactive to January 1, 2009 in both versions of the bill. Of course, that could change later, but as it stands now… it only goes back to 1/1/09. Any houses purchased by first time home buyers prior to 1/1/09…unless its changed…will have to pay the credit back over 15 years. Its still a good deal…its a $7500 interest free loan for 15 years!

From that article you linked to:

Both the Senate and the House versions of the new act remove the requirement that buyers repay the credit. The Senate bill applies retroactively to any purchase completed between January 1, 2009 and the end of August. The House version is also retroactive to the start of the year, and expires at the end of June. As long as buyers don’t sell for at least 36 months, they keep the money.

And the credit is refundable, meaning that it can be claimed even if the amount of the credit earned exceeds the buyer’s tax liability. So even if your total tax bill comes to just $5,000, you can still qualify for a full $7,500 refund

PROGRESS: Low rates, incentives spur real estate market

Carson City real estate agents admit 2009 has been a year of struggle. Housing starts are down to a trickle with 16 single-family homes this year, down from more than 40 in 2007. Inventory is up and lenders are holding back. But there have been bright spots with more potentially along the horizon, real estate agents say. Homeowners started coming back into the market this year, said Realtor …

St Paul|Real Estate| Buy|Houses|Federal Housing Tax Credit | Explained

Question: Will they change the first time home-buyer tax credit?

What do you people think, will they increase the first-time home buyer tax credit with the new stimulus packages (if it ever actually gets passed)?

If they do, I bought my first house on January 23, would I still qualify for the larger amount even though I closed before the law passed?

I’m waiting on them to figure that damn thing out so I can file my taxes.

Answer: I just read that they may not include that credit after all… It’s a way to cut some of the unnecessary stuff out. (go figure, something that would help real people) I don’t have a good answer for you, because I am wondering the same thing. I bought in December.

The original plan is a $7500 tax credit for people who buy your first home between April 8, 2008 and before July 1, 2009. It must be paid back over 15 years.

The stimulus package was supposedly going to make it a true credit vs. a loan. Keep your eye out for details just in case it goes through. Then it would be worth taking.

Or, put the $7500 into a savings account that earns 3% for 15 years. Take 500 out per year to pay it back. At the end, you will have approximately $1761 paid to you in interest.

Michigan continues tax credit for donated vehicles

Michigan motorists who donate vehicles to charities can continue claiming a state tax credit.

Understanding the First Time Homebuyer Tax Credit