Tax Credit

Tax Credit / Uncategorized — No Comments
9
Mar 10

REAL ESTATE RELATED TAX TIPS

Tax time is upon us again, so here are some real estate tax tips for all those who continue to procrastinate: 1.  Property tax deduction for second homes and/or investment property:  The property tax deduction is available for much more than just your primary residence.  The deduction is also available for second, third, or fourth homes, raw land, vacant lots, etc.  However, keep in mind that different rules apply for rental properties. 

 2.  Home-Buyer Tax Credit: If you are a regular reader of this Newsletter, you no doubt know the details of the Homebuyer credit, which ends on April 30th.  If you qualify, you could receive up to $8000 from the federal government.  (For more information about the homebuyer tax credit, give Norhill a call or visit http://www.federalhousingtaxcredit.com/.)

 3.  Refinance points: If you refinanced your primary or secondary home last year, you may have some tax deductions as well.  If you paid points, you might be able to amortize those points over the life of the loan.  For additional information, check out the instructions for Schedule A in your Form 1040 Forms and Instructions booklet. (Looking to refinance while rates are still low? Give us a call. Norhill can help.)

 4.  Green deductions: Going Green can definitely save you some “green”. Making green renovations makes homeowners eligible for dozens of tax deduction credits. The credits range from solar power panels to purchasing energy efficient appliances for your home.

 
 
We hope this provides you with a few good tips, but make sure to address these issues with your tax advisor or through independent research.  Norhill does not render accounting advise and the above information is no substitute for a competent accounting professional.  In other words, if you get audited, don’t blame us. 
Homebuyer Resources / In the News / Real Estate News / Tax Credit — No Comments
13
Nov 09

EXTENSION & EXPANSION OF THE HOMEBUYER CREDIT IS ON ITS WAY

As you may have heard, the tax credit for First-time homebuyers was set to expire at the end of this month.  This deadline has caused a lot of prospective homebuyers to rush to find a new home in the past few weeks and many will not make it.  Also, there has been a lot of concern that the expiration of the First-time Homebuyer credit might put a halt to the recovery currently going on in the new residential construction market. 

The Senate, in their benevolent wisdom, has passed a bill that will extend and expand the tax credit.  In its current form, the bill will extend the $8000 tax credit through April 30th of next year.  Also, it will increase the qualifying income levels for couples up to $225,000/year, an almost $55,000 increase.  Furthermore, the credit will be expanded to include existing homeowners that have owned their current primary residence for 5 of the previous 8 years.  These individuals will be eligible for a tax credit up to $6,500.  The bill still needs to work its way through the House of Representatives, and some of the details might change.  However, this action is a good step in the right direction for prospective homebuyers.  For more information about the Senate Bill, go here.