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The Federal tax credit has expired but BOLD Homes has three homes ready for immediate occupancy and will match your Kentucky tax credit dollar for dollar. Contact Mike Kegley for more details at 859-657-6700. Click the icon for more tax credit details.
The Federal home buying tax credits have expired but review the two Kentucky programs still available. Contact us for more information.
The New Home Tax Credit is a nonrefundable credit, up to $5000, against individual income tax allowable to a qualified buyer, provided a cap of $25,000,000 for all approved New Home Tax Credits has not been met.
• The up to $5,000 state income tax credit can be applied against state tax liability for the purchase of a new, not previously occupied home in the state of Kentucky.
• To qualify you must fax the New Home Tax Credit form to the Department of Revenue at (502) 564-3706 within seven (7) days of the closing.
• The tax credit is non-refundable, meaning you will not receive a refund of any unused portion and may not be carried forward or backward to another year.
• The home purchased must be a single family dwelling that will be used as the primary residence for at least two years.
• New homes must be purchased, with a complete sale by July 26, 2010 to qualify.
To Apply For the Credit:
A Mortgage Credit Certificates (MCC) reduces the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan. MCCs are NOT mortgages. They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment.
• Through the Kentucky Housing Corporation, the federal government allows first time homeowner an income tax deduction for part of the interest paid each year on a mortgage loan. The Mortgage Credit Certificate gives you a tax credit of up to $2,000 each year (25% of total interest), which reduces the amount of federal income tax you pay and puts more money in your pocket during the year.
• The credit can be taken for the life of the loan. If you sell your home before nine years you could be subject to a Federal Recapture Tax
The homebuyer tax credit is not as simple or straightforward as you might think. Here are some nuances that will affect homebuyers who plan to use it.
Source: Bankrate.com, Marcie Geffner (01/21/2010)
The homebuying season is starting early this year, thanks to the expanded first-time and move-up homebuyer tax credit.
Typically, the busiest time for home shopping starts in March and continues through May, but this year buyers who want to take advantage of the tax credits have to have a signed contract by April 30 and close the deal by June 30.
That is getting people off the couch.
“The tax credit will absolutely have an effect,” says Pete Flint, CEO of residential real estate search engine Trulia.com. “It is going to shift demand from the later part of the year to the first part. January and February will be very strong. The next three months, there will be a surge in demand.”
Source: USA Today, Stephanie Armour (01/20/2010)
In 1992 BOLD built this home for Doug and Susan. This month it appears as “Eyecatcher of the Month” on the City of Florence website. Congratulations Doug and Susan and thank you for taking care of our “baby” so well.
| Eye-Catcher of the Month |
| 8710 Valley View Dr. |
| About the Eyecatcher of the Month |
The Federal Reserve’s minutes from the Federal Open Market Committee’s mid-December meeting show that if the modest pace of economic growth slows or mortgage markets significantly deteriorate, “a few members” of the committee believe that “more policy stimulus” may be desirable. The Fed has been buying $1.25 trillion of mortgage-backed assets to ease lending markets and keep longer-term rates low — a program that is winding down and scheduled to end by March 31. The program was successful for much of last year, pushing mortgage rates below 5%, to levels not seen since the early 1950s. Many economists say the end of the program will push rates back up from a half point to a full point, adding to the cost of a house and diminishing the pool of buyers. The president of the Federal Reserve Bank of St. Louis, James Bullard, said in late November that the Fed should continue purchasing the securities. “I have advocated to keep the asset-purchase program open but at a very low level, and wait and see what happens,” he told Down Jones Newswires. (www.nytimes.com)
New York Times (1/7/10); David Streitfeld and Jack Healy
The 2010 plan to encourage energy efficiency is the government rebate for appliance buyers. The plan lets people swap their old appliances for new energy-efficient models at very low prices.
Here are some things to keep in mind:
· State plans vary. For state by state specifics, check out the state-by-state rebate program.
· Is it really a deal? It may not be worth replacing appliances that are fewer than seven years old, but older models can represent a real deal. Joe McGuire, president of the Association of Home Appliance Manufacturers, says a 20-year-old refrigerator uses three times as much power as a new Energy Star-approved model.
· Buy now before it ends. There is only about $300 million available and some states got more money than others. It is expected to run out fast.
Source: The Associated Press, Vinnee Tong (12/30/2009)
The IRS has spelled out guidelines for eligibility for the home buyer credit when co-borrowers purchase a property.
When a home-owning parent of an adult child co-signs for a mortgage and both names appear on the note, the IRS says that under some circumstances, the first-time home buyer can qualify for the whole amount.
The IRS says the parent doesn’t qualify for any portion of the credit, but if the child hasn’t owned a home during the three years preceding the current purchase and can qualify based on income, he or she can be allocated the entire $8,000 credit.
When unmarried individuals co-purchase a home and only one of them is eligible for the credit, then the full $8,000 can be allocated to the eligible buyer.
Source: Washington Post Writers Group, Kenneth R. Harney (12/04/2009)
The new $6,500 move-up Homebuyer Tax Credit is apparently motivating buyers, according to a Campbell Communications survey of 1,500 real estate practitioners.
Existing home owners accounted for 41 percent of home purchases in November, up from 38 percent in October, the survey found.
“Current home owners jumped at the credit,” says survey research director Thomas Popik.
Source: Housing Wire, Austin Kilgore (12/22/2009)
