Two Great Reasons for San Jose Seniors to Sell (and Buy) in 2010
By Michelle C. Carr-Crowe
I’ll make it brief and to the point: 2010 is your year to sell if
1) You plan to sell and want to buy another property, especially if the new property will be less than $800,000, and/or
2) You have significant equity built up and want to save capital gains tax, as the existing benefit ends at the close of 2010.
Currently, there is a new, limited-time tax credit available to homeowners selling and buying a property (both must close by April 30, 2010). Also, a single person who closes by December 31, 2010 can keep $250,000 in tax free capital gains, and a married couple doing the same can keep up to $500,000.
Sales of assets held more than 12 months and sold on or after May 6, 2003 qualify for the 15 percent capital gains rate (5 percent for lowest income taxpayers and zero percent beginning in 2008). The capital gains rate reverts to 20 and 10 percent for assets held for more than 12 months and sold after December 31, 2010.
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Showing posts with label tax credit. Show all posts
Showing posts with label tax credit. Show all posts
Thursday, December 31, 2009
Tuesday, November 10, 2009
Saratoga Senior Salvation-A Tax Credit for Move-DOWN Saratoga Buyers
Saratoga Senior Salvation-A Tax Credit for Move-DOWN Saratoga Buyers
By Michelle C. Carr-Crowe
Lost in the hoopla about extending and expanding the “up to” $8,000 credit for new homebuyers is the credit for existing homeowners. In my opinion, this can be “Senior Salvation” - a tax credit for move-DOWN Saratoga buyers.
I called my broker, my local real estate board, the California Association of REALTORS®, and even the IRS to ask my question: does this credit apply for move-down buyers?
So far the answer is, “As long as they qualify and have a tax to apply the credit to, it looks like YES.”
To summarize:
1. A first time homebuyer is one that has not owned a home for at least three years.
2. A repeat homebuyer must have owned their current home for at least five consecutive years out of the last eight years.
3. The maximum purchase price for the new home is $800,000.
4. If single, your earning maximum to qualify is $125,000; if married, it’s up to $250,000.
5. There's no gap between the prior deadline (November 30th) and the new credit period, which ends April 30th.
6. While you must be in a contract to purchase your new home on or before April 30th, you have until June 30th to close the transaction.
7. To prove you qualify, you'll need to attach proof of purchase to your tax return (most likely a HUD-1 or final closing statement).
Caveat: please, please check with your tax professional and attorney before making any real estate commitments.
However, this may finally be a tax credit that helps seniors who’ve lived in their homes for more than five consecutive years of the past eight.
For example, a senior couple selling a 1.5 million dollar single family home in Saratoga Lynbrook they’ve owned for the past 10 years, then buying a single-level 3 bedroom condo in San Jose for $650,000 not only get to keep their $500,000 tax-free capital gains benefit and transfer their tax basis, they can also now use up to $6,500 as a tax credit.
By Michelle C. Carr-Crowe
Lost in the hoopla about extending and expanding the “up to” $8,000 credit for new homebuyers is the credit for existing homeowners. In my opinion, this can be “Senior Salvation” - a tax credit for move-DOWN Saratoga buyers.
I called my broker, my local real estate board, the California Association of REALTORS®, and even the IRS to ask my question: does this credit apply for move-down buyers?
So far the answer is, “As long as they qualify and have a tax to apply the credit to, it looks like YES.”
To summarize:
1. A first time homebuyer is one that has not owned a home for at least three years.
2. A repeat homebuyer must have owned their current home for at least five consecutive years out of the last eight years.
3. The maximum purchase price for the new home is $800,000.
4. If single, your earning maximum to qualify is $125,000; if married, it’s up to $250,000.
5. There's no gap between the prior deadline (November 30th) and the new credit period, which ends April 30th.
6. While you must be in a contract to purchase your new home on or before April 30th, you have until June 30th to close the transaction.
7. To prove you qualify, you'll need to attach proof of purchase to your tax return (most likely a HUD-1 or final closing statement).
Caveat: please, please check with your tax professional and attorney before making any real estate commitments.
However, this may finally be a tax credit that helps seniors who’ve lived in their homes for more than five consecutive years of the past eight.
For example, a senior couple selling a 1.5 million dollar single family home in Saratoga Lynbrook they’ve owned for the past 10 years, then buying a single-level 3 bedroom condo in San Jose for $650,000 not only get to keep their $500,000 tax-free capital gains benefit and transfer their tax basis, they can also now use up to $6,500 as a tax credit.
Savings for Cupertino Seniors-the Tax Credit for Move-DOWN Cupertino Buyers
Savings for Cupertino Seniors-the Tax Credit for Move-DOWN Cupertino Buyers
By Michelle C. Carr-Crowe
Lost in the hoopla about extending and expanding the “up to” $8,000 credit for new homebuyers is the credit for existing homeowners. In my opinion, this can be “Senior Salvation” - a tax credit for move-DOWN Cupertino sellers and buyers.
I called my broker, my local real estate board, the California Association of REALTORS®, and even the IRS to ask my question: does this credit apply for move-down buyers?
So far the answer is, “As long as they qualify and have a tax to apply the credit to, it looks like YES.”
To summarize:
1. A first time homebuyer is one that has not owned a home for at least three years.
2. A repeat homebuyer must have owned their current home for at least five consecutive years out of the last eight years.
3. The maximum purchase price for the new home is $800,000.
4. If single, your earning maximum to qualify is $125,000; if married, it’s up to $250,000.
5. There's no gap between the prior deadline (November 30th) and the new credit period, which ends April 30th.
6. While you must be in a contract to purchase your new home on or before April 30th, you have until June 30th to close the transaction.
7. To prove you qualify, you'll need to attach proof of purchase to your tax return (most likely a HUD-1 or final closing statement).
Caveat: please, please check with your tax professional and attorney before making any real estate commitments.
However, this may finally be a tax credit that helps seniors who’ve lived in their homes for more than five consecutive years of the past eight.
For example, a senior couple selling a $2 million dollar single family home in Cupertino Monta Vista they’ve owned for the past 8 years, then buying a new single-level 2 bedroom condo in San Jose for $650,000 not only get to keep their $500,000 tax-free capital gains benefit and transfer their tax basis, they can also now use up to $6,500 as a tax credit.
And as the capital gains $500,000 tax-free credit is set to EXPIRE as of December 31, 2010, now is a huge window of opportunity for seniors seeking to maximize their benefits.
By Michelle C. Carr-Crowe
Lost in the hoopla about extending and expanding the “up to” $8,000 credit for new homebuyers is the credit for existing homeowners. In my opinion, this can be “Senior Salvation” - a tax credit for move-DOWN Cupertino sellers and buyers.
I called my broker, my local real estate board, the California Association of REALTORS®, and even the IRS to ask my question: does this credit apply for move-down buyers?
So far the answer is, “As long as they qualify and have a tax to apply the credit to, it looks like YES.”
To summarize:
1. A first time homebuyer is one that has not owned a home for at least three years.
2. A repeat homebuyer must have owned their current home for at least five consecutive years out of the last eight years.
3. The maximum purchase price for the new home is $800,000.
4. If single, your earning maximum to qualify is $125,000; if married, it’s up to $250,000.
5. There's no gap between the prior deadline (November 30th) and the new credit period, which ends April 30th.
6. While you must be in a contract to purchase your new home on or before April 30th, you have until June 30th to close the transaction.
7. To prove you qualify, you'll need to attach proof of purchase to your tax return (most likely a HUD-1 or final closing statement).
Caveat: please, please check with your tax professional and attorney before making any real estate commitments.
However, this may finally be a tax credit that helps seniors who’ve lived in their homes for more than five consecutive years of the past eight.
For example, a senior couple selling a $2 million dollar single family home in Cupertino Monta Vista they’ve owned for the past 8 years, then buying a new single-level 2 bedroom condo in San Jose for $650,000 not only get to keep their $500,000 tax-free capital gains benefit and transfer their tax basis, they can also now use up to $6,500 as a tax credit.
And as the capital gains $500,000 tax-free credit is set to EXPIRE as of December 31, 2010, now is a huge window of opportunity for seniors seeking to maximize their benefits.
Saturday, November 7, 2009
Lovely 3 Br Home in Exquisite Neighborhood Missing Just 2 Things-YOU & 1 Other Thing …
Lovely 3 Br Home in Exquisite Neighborhood Missing Just 2 Things-YOU & 1 Other Thing …
Lovely 3 Br Home in Exquisite Neighborhood Missing Just 2 Things-YOU …and 1 Other Thing...a Second Bath...But WAIT!
More than half of the homes on this street only have 1 Bath also.
Before you reject, come see it Sunday from 1:30 to 4:30
You can't buy a better neighborhood for the $$!
REMEMBER: Tax Credit and Unemployment Benefits Officially Extended & Expanded
The existing tax credit for first-time buyers, originally set to expire at the end of the month, has been extended, expanded and approved by the House, Senate and President Barack Obama.
The new measure benefits a larger group of potential home buyers. It allows both first-timers and existing homeowners to take advantage of thousands in the form of a tax credit. All properties must close by the end of April.
The measure would continue giving an $8,000 tax credit to first-time buyers. In addition, it provides a $6,500 tax break to qualified homeowners looking to move up to middle-market homes that cost no more than $800,000.
The legislation also significantly raises the qualifying income levels to $125,000 for individual income tax filers and to $225,000 for joint filers.
Grandma's Cottage! Updated Willow Glen Charmer! Located in Superb Neighborhood!
* REDUCED $!
* FREE Gifts at Open House on Sun, 10/18 1:30-4:30!
*Grandma's Cottage is Light, Lovely & Squeaky Clean!
*Move-In Condition & Located on Quiet St in Fabulous DRY CREEK Area of Willow Glen!
*Gleaming Hardwood Floors!
*Dual Pane Windows!
*Custom Blinds!
* Great Natural Light-Fabulous Airy Feeling-All BR Feature 2 Windows!
* Gated CourtYard!
* Pretty Patio!
* Yummy Fruit Trees!
* E-Z 2 Block Walk to Booksin, Willow Glen Jr & Willow Glen High!
2180 Cheryl Way, San Jose
Lovely 3 Br Home in Exquisite Neighborhood Missing Just 2 Things-YOU …and 1 Other Thing...a Second Bath...But WAIT!
More than half of the homes on this street only have 1 Bath also.
Before you reject, come see it Sunday from 1:30 to 4:30
You can't buy a better neighborhood for the $$!
REMEMBER: Tax Credit and Unemployment Benefits Officially Extended & Expanded
The existing tax credit for first-time buyers, originally set to expire at the end of the month, has been extended, expanded and approved by the House, Senate and President Barack Obama.
The new measure benefits a larger group of potential home buyers. It allows both first-timers and existing homeowners to take advantage of thousands in the form of a tax credit. All properties must close by the end of April.
The measure would continue giving an $8,000 tax credit to first-time buyers. In addition, it provides a $6,500 tax break to qualified homeowners looking to move up to middle-market homes that cost no more than $800,000.
The legislation also significantly raises the qualifying income levels to $125,000 for individual income tax filers and to $225,000 for joint filers.
Grandma's Cottage! Updated Willow Glen Charmer! Located in Superb Neighborhood!
* REDUCED $!
* FREE Gifts at Open House on Sun, 10/18 1:30-4:30!
*Grandma's Cottage is Light, Lovely & Squeaky Clean!
*Move-In Condition & Located on Quiet St in Fabulous DRY CREEK Area of Willow Glen!
*Gleaming Hardwood Floors!
*Dual Pane Windows!
*Custom Blinds!
* Great Natural Light-Fabulous Airy Feeling-All BR Feature 2 Windows!
* Gated CourtYard!
* Pretty Patio!
* Yummy Fruit Trees!
* E-Z 2 Block Walk to Booksin, Willow Glen Jr & Willow Glen High!
2180 Cheryl Way, San Jose
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