Tax Credits For Energy Efficient Improvements

June 27, 2009

According to the American Recovery and Reinvestment Act of 2009, tax credits for improvements to energy-efficient existing homes will be extended through 2010. Under current law, individuals are allowed a tax credit equal to 10% of the amount paid or incurred by the taxpayer for qualified energy efficient improvements installed during the taxable year. This tax credit is capped at $50 for any advanced main air circulating fan, $150 for any qualified natural gas, propane, oil furnace or hot water boiler, and $300 for any item of energy-efficient building property. For 2009 and 2010, the bill would increase the amount of the tax credit to 30%. The bill would also eliminate the property-by property dollar caps on this tax credit and provide aggregate $1,500 cap on all property qualifying for the credit.

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First-time Homebuyer’s Credit

June 26, 2009

The 2008 Housing Act adds a new refundable tax credit for “first-time homebuyers”.

- Credit is the lesser of $7,500 ($3,750 for MFS) or 10% of the home’s purchase price.
- Available for principle residences purchased after April 8, 2008, and before December 1, 2009. (If taxpayer constructs the home, he/she must first occupy between these dates.)
- The credit is computed on Form 5405 and carried to line 69 of Form 1040.

A “first-time homebuyer” is an individual who had no present ownership interest in a principal residence during the three-year period ending in the date of the purchase of the principal residence to which the credit applies. If the individual is married, neither the individual nor his/her spouse may have had present ownership interest in a principal residence during that three-year period.

For more information about the 2008 First-time Homebuyer’s credit, consult your tax adviser. Additionally, President Obama’s Stimulus Bill creates and $8,000 credit for 2009.

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Long-time Occupant Homeowner Exemption – Cook County

June 21, 2009

Cook County New exemption will allow homeowners residing in their homes 10 years or more to receive additional tax relief if the following requirements are met:

• Homeowner with a total household income of $75,000 or below will have an increase limited to 7% over the prior year’s taxable value, with no maximum exemption amount.

• Homeowner with a total household income greater than $75,000, but not exceeding $100,000 will have an increase limited to 10% over the prior year’s taxable value, with no maximum exemption amount.

Please note the Long-Time Occupant Exemption cannot be received with the 7% Expanded Homeowner Exemption or the Senior Freeze Exemption. The most beneficial exemption will be applied to the property.

If you would like additional information regarding this new exemption or any other exemption, go to www.cookcountyassessor.com.

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Stimulus Won’t Help You

March 2, 2009

Tax Credit for Homebuyers
First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.
The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Additional Housing-Related Provisions
Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.
Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.
Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing—This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs.Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8 ) to increase energy efficiency, including new insulation, windows, and frames.
Expanding Housing Assistance—This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

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Loan Modification Scams

February 8, 2009

Be careful when considering refinancing your loan because of current economic hardship. If you need some financial advice regarding your economic position & mortgage contact me and I’ll get you in touch with professionals who look out for your best interest.