The Hollinden Team Louisville KY Real Estate Blog

Open House Weather

 During my open house on Sunday, the weather was crappy.  40 degrees and light rain.  Yet, we had several interested buyers.  As my colleagues sat around the Keller office on Monday comparing notes about the various open houses that we had held on Sunday, the consensus was that traffic was much higher than expected.  And, the buyers were serious.  Lets hope things continue....

$6500 move up tax credit

Some of the increase in recent real estate sales can be attributed to the general strengthening of the economy and some to the first time home buyer’s credit.
The $8,000 has definitely made a difference and brought more buyers into the market.  This enabled new people to purchase homes and those owners to move up.  Fortunately, this has been extended to April 30, 2010.  There has been some publicity, and as Realtors®, we think sales will increase again just before the deadline.  One interesting part of this extension is that a new group of homebuyers has also been targeted.  People that have lived in their home for 5 consecutive years of the last 8 are now eligible for a tax credit of $6,500. 
As a Realtor®, I think that everyone knows this. 
The reality, is that few people do. 
As word gets out about this tax credit, we think that...

First-Time Homebuyer Credit Questions and Answers: Homes Purchased in 2009

New legislation signed on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. The new law:

  • extends deadlines for purchasing and closing on a home
  • authorizes the credit for long-time homeowners buying a replacement principal residence
  • raises the income limitations for homeowners claiming the credit 

Q. I bought my home in 2009 (early) and filed my 2008 tax return claiming the $7,500 first-time homebuyer credit that has to be repaid. Now the expanded law provides for an $8,000 credit that doesn’t have to be repaid. What do I need to do to get the $8,000 credit that doesn’t have to be paid back?

A. You can file an amended return.

Q. If I purchase a home in June 2009, and have already filed my 2008 tax return, can I amend my 2008 return or will I have to claim it on my 2009 return?  

A. You can either file...

First-Time Homebuyer Tax Credit Scenarios

The following information is reproduced directly from the IRS.gov website.

S1. If a single person (Taxpayer A) qualifies as a first-time homebuyer at the time he/she purchases a home with someone (Taxpayer B) that is not a first-time homebuyer and then later that year they marry each other, is the credit still allowed?

A. Eligibility for the first-time homebuyer credit is determined on the date of purchase. If Taxpayer A, a first-time homebuyer, buys a house and then later that year marries Taxpayer B, not a first-time homebuyer, the credit is allowable to Taxpayer A. Taxpayer A may take the maximum credit.

S2. Taxpayer A is a single first-time home buyer. Taxpayer B (parent) cosigns for A and does not qualify. Both names are on the mortgage. Can Taxpayer A claim the credit and, if so, how much? 

A. Yes. Taxpayer B is not a first-time homebuyer and cannot claim any portion of the credit, but A may claim the entire credit ($7,500 for purchase...

Homebuyer Tax Credit Questions and Answers

Updated Nov. 6, 2009, to note new legislation. The new legislation extends and expands the first-time homebuyer credit allowed by previous Acts. The new law:

  • extends deadlines for purchasing and closing on a home
  • authorizes the credit for long-time homeowners buying a replacement principal residence
  • raises the income limitations for homeowners claiming the credit 

Q. What is the credit?

A. The first-time homebuyer credit is a new tax credit included in the Housing and Economic Recovery Act of 2008. For homes purchased in 2008, the credit operates like an interest-free loan because it must be repaid over a 15-year period.

The credit was expanded in 2009 for homes purchased in 2009, increasing the amount of the credit and eliminating the requirement to repay the credit, unless the home ceases to be your principal residence within the 36-month period...