If you take the first time or move up home buyer tax credit, make sure you can provide eligibility documentation for the IRS.
It seems there are some people that took the credit that weren’t eligible. In an attempt to avoid this from happening in the future, the IRS has tightened the rules regarding this tax credit.
To take the home buyer tax credit, offers must be contracted by April 30, 2010 and must fund by June 30, 2010.
For more information regarding the home buyer tax credit eligibility, refer to a tax professional and/or the IRS.
Oregon’s top earners may be preparing for a mass exodus now that Oregon has voted to target the wealthy to solve their deficit problems.
It is possible SW Washington will see businesses and high income earners relocating over the border to avoid the new tax increases. Prior to this tax increase being passed we talked to several people from Oregon that said, “If Oregon increases our taxes, we are out of here.”
Time will tell if Oregon’s tax increase will cause a wave of top earners to move across the border into SW Washington. At a time when Washington has it’s own deficit problems, a move like over the border could benefit Washington state greatly.
Regarding Washington’s budget shortfall, Governor Chris Gregoire said “I will do my best to avoid any new taxes that slow our economic recovery. I will balance, as best I can, my interest in keeping new taxes down, while still protecting programs that I believe the vast majority of us agree are just too important to eliminate. We need a combination of reduced funding for services and raising revenue.”
Avoiding new taxes may sound very appealing to Oregon’s high income earners.
It appears down payment help is officially on the way for first time buyers!
It was announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. The goal of the new FHA plan is to help stimulate home sales and help stabilize the housing market.
For more information about this great opportunity, please refer to http://www.hud.gov/news/release.cfm?content=pr09-072.cfm
First-time home buyer?
If you haven’t owned a principal, single family home in the three years prior to purchase, you may be eligible for a tax credit up to $8,000. This credit is available on homes purchased on or after January 1, 2009 and before December 1, 2009. Generous income limits apply, single $75,000, married filing jointly $150,000. There is no repayment as long as you keep the home for 3 years.
I’ve attached a link for some additional information about this tax credit. For more information about this tax credit, please contact a qualified tax professional.
For a person about to lose their home to foreclosure, this information is important.
Prior to 2007 a seller would have to pay capital gains on the portion of their loan that a mortgage company writes off for them to sell their home in a short sale. Today, “The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.” This change is effective 2007-2012.
For more information, see: http://www.irs.gov/individuals/article/0,,id=179414,00.html
I am not a tax professional, so please consult with a tax professional before making any tax decisions.