Happy house hunting!

by Bob Williams on Thu 05 Nov 2009 02:37 PM EST  |  

Contrary to all the advice TaxVox offered, the Senate last night voted to extend the Homebuyer’s Tax Credit for seven months and expand it to include many people who already own homes. The House will likely follow suit today.

I have clearly misread the mood of Congress and the country. And I should have known better. Ever since the Tax Reform Act of 1986, Congress has larded the revenue code with credits and deductions to encourage retirement saving, college attendance, homeownership, and healthcare. This year’s stimulus bill created new tax benefits to boost demand for housing and autos, and President Obama’s 2010 budget would expand tax credits for retirement savings. And just this past Tuesday, voters resoundingly chose two new governors who promised to cut taxes to encourage economic development.

Now that I understand the thinking of Congress and the country, may I suggest a few new tax credits that will help the economy recover from its recent doldrums? Any member of Congress may freely adopt one or more, preferably without attribution.

New Stock Buyers Tax Credit: Despite its recent rebound from last year’s lows, the Dow Jones Industrial Average remains 30 percent below its high just over two years ago. The credit would go to new stock buyers (defined as people who have owned less than $100,000 of common stock during the past six months) and equal 25 percent of up to $50,000 of the cost of stock purchased between now and October 1, 2010 (the third anniversary of the Dow’s record high). No income limits would apply but college students on scholarships could not claim the credit. Nor would the credit have any age restrictions although children could claim the credit only if they can count to twenty with shoes on.

Real Books Tax Credit: The sale of real books is plummeting, as former buyers shift to electronic books or borrow paper copies from the library in an effort to cut costs in the slow economy. And bricks-and-mortar bookstores have suffered further from price-cutting by on-line booksellers. A refundable tax credit equal to the full suggested retail price of eight books per eligible taxpayer purchased from retail bookshops with average annual sales over the past six years of no more than 500 copies of the year’s top 25 fiction best sellers would generate a rapid increase in demand for struggling booksellers. Qualifying purchases would have to occur on weekdays between now and the conclusion of the 2010 National Reading Week next May. People whose libraries contain more than 125 books published since 2001 could not claim the credit.

Santa Claus Tax Credit: Retailers predict desultory holiday sales this year. The Santa Claus credit would pump up purchases by reducing the after-tax cost of gifts purchased and given by the end of 2009. The non-returnable credit would equal half the cost of any gift bought in person by people using handwritten letters to Santa from children under age 15 who live with relatives at least nine months during 2009 and still believe in Santa, the tooth fairy, and the Easter bunny. Alternative credits would benefit people who celebrate Hanukkah, Kwanza, or the winter solstice.

My list of possible tax credits is hardly exhaustive but it clearly addresses the mood of Congress and the country: no foundering market should lack its own personal tax stimulus.

Well, it has been sometime that I reached out to you all.  After getting so many positive responses to my first try at the blog, I am blogging again!

This time, with your permission, I will focus on Real Estate, market trends, updates, and the WOW! of what is happening in my world.  I hope you enjoy, comment, and stay with me as this will be a learning experience.  If there are items that you would like to see, please let me know.  That is the joy of learning and adaptation!

So, for now…here is the latest and greatest…

First off, I would like to introduce you to my new endeavor, Home Buyer Bike Tours!  Created last fall while taking my sister, Moira and her soon to be fiance, JT, around the NW Denver area to look for their new home.  It was a hot, late summer day and there was no better place to be than out of a stuffy car and feeling the breeze on our face as we cruised around the neighborhood checking out our list of possible homes for the day and stopping to smell the roses, literally. 

I decided that this was the most fun I had showing property, AND a better way to show clients their potential neighborhood. Of course, this was right up my eco green alley. 

My brother, Brian, www.SlevinDesigns.com, is the graphic designer of the family and created my logo. 

Time to get the word out!  If you know of any Buyers that would be interested in seeing their new neighborhood, at street level and a casual pace, please have them give me a call! www.HomeBuyerBikeTours.com  (website improvements to come).  I have already had some clients enjoy our cool spring weather and a tour of the Sunnyside/ Potter Highlands area.  Cheers Stephanie & Andrew!

Stephanie & Andrew enjoying a mild spring afternoon!

This past weekend, my bike was invited to participate in a “Bike Fashion Show” at the Denver Green Festival.  Organized by www.BikeDenver.org , we had about 30 bikes that showed off the fun of gas free commuting, and pure cycling enjoyment! 

1975 Schwinn Collegiate equipped with baskets, bell, and drink holder!

Of course I still love working with my non-biking Buyers and Sellers.  I continue to use  the fabulous tools of Coldwell Banker in order to assist my clients with excellent service!

So, if there is anyone you know, that is thinking about buying or selling, please give them my name.  I would love to help them with outstanding professional service.  I can take the stress out of finding Realtors across the country as I am affiliated with the nations largest relocation service.  Just give me a call, I’d be happy to help!

Monique Hailer - O'Brien Realty

 

Southern Maryland First Time Home Buyers Seminar

New Class to Be posted Soon!

 If you are interested in “One on One”  information please let me know: (443)532-5407 or Email: moniquehailer@mris.com

Contact: Monique Hailer – O’Brien Realty
M: (443)532-5407
H: (410)326-0000
O: (301)863-2400
Email: moniquehailer@mris.com
Web: www.lusbytowncenter.net
Monique Hailer
O’Brien Realty
Mobile: 443.532.5407
Home:410.326.0000
Office: 301.863.2400 Ext 262

Here is a Great information link from The Federal Government! Federal Housing Tax Credit

The stimulus bill is now law. First-time buyers to get an $8000 home buyer tax credit.

Here are the terms of the first-time buyer tax credit:

* It has increased from $7500 to $8000 It is capped at 10% of the purchase price.
* It is no longer a loan, it is a “credit” to home buyers but the buyer must remain in the home for 3 years.
* It is for first-time home buyers, defined as someone that hasn’t owned a home in the last 3 years.
* It is applicable for anyone that buys or has bought closed after 12/31/08 and before 01/01/2010.
* Full credit is available to those making $75,000 (phases out at $95,000 for single) or less, or $150,000 for joint filers.
Please click the link to download a helpful PDF from the National Association of REALTORS, thanks!

How many times have you been told to be responsible with your upcoming economic stimulus check?  That you ought to pay off credit cards or pay down existing debt?  Can you count that high?  Every time I hear that advice I sigh and I think, “Yeah, yeah, but I want to do something fun!”  I want to do something I wouldn’t have been able to do without that check.  Paying off a credit card feels like I’m wasting that money.  It feels like I’m no better off than I was before.

I freely admit to feelings like this, even though I’m old enough to know better.  Wasting money is anathema.  Losing money is depressing.

But I’ve learned to get around this depressing feeling, and even look forward to paying my credit card bill, with just a slight twist in my thinking.  Imagine the government told you they were going to send you a big check in two weeks.  You decide to spend that money now on something you wouldn’t otherwise have been able to buy, and just put it on your card.  When the credit card bill arrives, and you’re holding the check from the government, would you feel any remorse about paying the bill?

You wouldn’t feel any remorse because you were just using that money for what you had already decided to use it for.  You wouldn’t feel like you were losing or wasting the money, you got to do what you wanted with the money.

So if you get a tax check that’s big enough to make a dent in your credit card bill, paying the bill doesn’t mean you wasted your government check.  It means you got to do something on Uncle Sam’s dime.  You bought something but don’t have to pay for it.  Lucky you.

This article originally appeared in the May 14, 2008, edition of the Greenhorn Valley View.

The Economic Stimulus Act signed by President Bush on February 13, 2008 helps businesses in two ways. It gives companies a 50% bonus deduction on most shorter life property placed in service in 2008. And it increases — to $250,000 from $128,000 in 2008 — the section 179 limit on expenses that small businesses can deduct from annual income, with a total cap of $800,000.

Bonus depreciation allows taxpayers to take a deduction of 50% of all property placed in service with a class life of 20-years or less. The remaining basis for the shorter life property gets depreciated over the applicable MACRS recovery period. For every $1 million of 5-year property, the deduction will be approximately $600,000 in the first year.

Bonus Depreciation Qualifications:
To qualify for bonus depreciation in the first year, several criteria must first be met:

* Depreciable property will qualify if the original use of the property commences with the taxpayer after December 31, 2007 and before January 1, 2009 but only if no written binding contract for the acquisition of the property was in effect before December 31, 2007.
* Qualifying property is MACRS property that has a recovery period of twenty years or less.
* It may not be property that is required to be depreciated under the alternative depreciation system of section 168.

Whether you are buying, building or improving a building, SourceCorp can help maximize your income tax deductions through our in-depth cost segregation service.

There are several advantages in choosing SourceCorp as your Cost Segregation Study provider:

1. SourceCorp: Single-Source Capability
As your single-source Cost Segregation Study provider, we will save your client and your firm both time and money. Choosing one provider that can deliver all the different elements of a Cost Segregation Study – a turn-key approach – is not only more convenient, but is the most cost effective method to streamline the entire process.

2. SourceCorp: Industry Specific Knowledge & Experience
In business since 1983, we draw upon 25-year’s industry expertise from proven real-world experience and can offer unmatched strategic and tactical advice. This long-earned industry knowledge can quickly steer your project in the right direction—minimizing implementation time and maximizing ROI.

3. SourceCorp: Process Orientation
In a successful Cost Segregation solution, understanding the process is as important as supplying effective technological tools. SourceCorp possesses experience in your industry and capabilities related to process orientation providing a winning combination.

4. SourceCorp: Flexibility, Compatibility, and Responsiveness
As an experienced Cost Segregation Study provider, we will track changes and become aware of hidden needs within the project. Armed with this knowledge, we are able to foresee and respond to future issues, providing solutions with minimal disruption to current processes.

5. SourceCorp: A Standardized Approach & Fixed Fee
We provide a standard approach and fixed fee billing. We maintain standardized methodologies, processes and technologies. This way project work is compatible across our entire organization as well as providing the most powerful tools available.

6. SourceCorp: Free Initial Analysis
We build lasting relationships. We will honestly tell you if it is worthwhile to pursue the study at no cost to you.

If you would like to discuss these options further or would like to visit with one of our Cost Segregation Directors, please contact:

Matt Rader
Phone: 817.732.5494, x133

Or you can complete our online information form at: SourceCorpTax.com

The IRS estimates that 130 million taxpayers will receive checks of at least $300 beginning in May, right on the heels of the busy income tax season. However, the stimulus payment will not reduce a taxpayer’s refund or increase the amount owed on an individual’s tax return for 2008.

And while the stimulus payment is not taxable next year, taxpayers are encouraged to keep a copy of the IRS notice they will receive later this year listing the amount of the payment. In the event a taxpayer does not qualify to receive the full amount this year but does next year, the notice will be a record of the previous amount received.
tax

what would you tell the IRS for 300 bucks?