Tuesday, December 22, 2009
MAINE HOME SALES UP 48.55%
MAINE HOME SALES: In a press release to the media today, MREIS reports that Maine's single-family existing home sales increased 48.55% comparing November 2009 to November 2008. The median sales price is $164,000, a decrease of 4.8% for that same time period. Median means that half sold for more, half sold for less. Nationally, home sales in November increased 42.1% and in the Northeast, a 52.7% increase. The complete press release: http://www.mainerealtors.com/Statistics/2009PressReleases/MaineHousingReport-November2009.pdf
Tuesday, November 10, 2009
Monday, November 9, 2009
Tax Information on Extended First Time Homebuyer Credit
The new Worker, Homeownership and Business Assistance Act signed into law on Nov. 6, 2009 extends the first time homebuyer credit of $8,000 to sales made on homes purchased before April 30, 2010. The credit remains a fully refundable credit and does not have to be repaid. It is available to taxpayers whose income is up to $125,000 for single filers and $225,000 for joint filers. The credit can be claimed on an amended or current year return.
A new credit of up to $6,500 is also available for repeat homebuyers who have been in their principal residence during any five year consecutive period during the 8 year period that ends on the date the replacement home is purchased not to exceed April 30, 2010 or closing date of June 30, 2010. It is also fully refundable and does not have to be repaid. Taxpayers whose income does not exceed $125,000 for single filers and $225,000 for joint filers are eligible for the full credit with a complete phaseout at $145,000 for single filers and $245,000 for joint filers.
The credit is claimed on Form 5405, which is submitted with the original or amended tax return. For more information, visit www.sandrabaur.com or www.irs.gov.
A new credit of up to $6,500 is also available for repeat homebuyers who have been in their principal residence during any five year consecutive period during the 8 year period that ends on the date the replacement home is purchased not to exceed April 30, 2010 or closing date of June 30, 2010. It is also fully refundable and does not have to be repaid. Taxpayers whose income does not exceed $125,000 for single filers and $225,000 for joint filers are eligible for the full credit with a complete phaseout at $145,000 for single filers and $245,000 for joint filers.
The credit is claimed on Form 5405, which is submitted with the original or amended tax return. For more information, visit www.sandrabaur.com or www.irs.gov.
Friday, November 6, 2009
AddThis - AddThis Toolbar for Internet Explorer
This is a really cool tool for those of you who like to blog. Definitely worth the download!
AddThis - AddThis Toolbar for Internet Explorer
AddThis - AddThis Toolbar for Internet Explorer
Thursday, November 5, 2009
Homebuyer Tax credit is extended and expanded!
Common questions regarding the new tax credit-
The UI bill including the homebuyer tax credit extension and expansion has passed the House by a vote of 403-12 after passing the Senate last night 98-0.
The new provisions take effect as soon as President Obama signs the bill, which we expect will be before the weekend. Including a couple questions received in the last couple days about the new credit:
1. Existing homeowner credit: Must the new house cost more than the old house?
A. No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.
2. I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
A. Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.
3. I am a first-time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?
A. Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you're within the phase-out range).
4. I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a non-negotiable price of $825,000. Will I be able to use any of the $6500 tax credit?
A. No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.
5. I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
A. Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight, what he did since 3 years doesn't impact eligibility.
6. I am an eligible first-time homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?
A. You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.
The UI bill including the homebuyer tax credit extension and expansion has passed the House by a vote of 403-12 after passing the Senate last night 98-0.
The new provisions take effect as soon as President Obama signs the bill, which we expect will be before the weekend. Including a couple questions received in the last couple days about the new credit:
1. Existing homeowner credit: Must the new house cost more than the old house?
A. No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.
2. I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
A. Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.
3. I am a first-time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?
A. Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you're within the phase-out range).
4. I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a non-negotiable price of $825,000. Will I be able to use any of the $6500 tax credit?
A. No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.
5. I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
A. Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight, what he did since 3 years doesn't impact eligibility.
6. I am an eligible first-time homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?
A. You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.
Wednesday, August 19, 2009
Real Estate
America's Most Livable Cities
Zack O'Malley Greenburg, 04.01.09, 5:15 PM ET
The beer at Gritty McDuff's might be enough to lure people to Portland, Me. Established in 1988, the downtown pub offers a smattering of small-batch ales brewed on the premises in addition to usual tavern treats. From the patio, customers can enjoy a pint along cobblestone streets or retire to the copper-topped bar for a second round.
Tasty microbrews aren't the only reason to like Portland. Thanks to high marks in five key quality of life metrics, Portland tops this year's list of America's Most Livable Cities.
"It's a very easy place to live," says Leon Perrin, 31, a manager at Gritty's. "It's small, so getting around isn't too much of a hassle. And it's a beautiful place throughout all four seasons."
In Pictures: America's Most Livable Cities
Perrin, who has lived in Maine for 20 years, is one of 513,000 residents living the good life in the Portland metropolitan area. The region earned high marks for income growth and culture; it also has low levels of crime and unemployment. Residents can afford the relatively high cost of living because of a 6.3% income growth rate over the past five years.
Bethesda, Md., and Des Moines, Iowa., round out the top three, followed by Bridgeport/Stamford, Conn., and Tulsa, Okla.
Behind the Numbers
To form our list, we looked at quality of life measures in the nation's largest continental U.S. metropolitan statistical areas--geographic entities defined by the U.S. Office of Management and Budget for use by federal agencies in collecting, tabulating and publishing federal statistics. We eliminated areas with populations smaller than 500,000 and assigned points to the remaining metro regions across five data sets: Five-year income growth per household and cost of living from Moody's Economy.com, crime data and leisure index from Sperling's Best Places, and annual unemployment statistics from the Bureau of Labor Statistics.
Modesto, Calif., ranks as the worst metro area with more than 500,000 residents. This crime-wracked enclave in the Central Valley demands the same moderately high cost of living as Portland with a third of the job growth and nearly three times the unemployment. Modesto ranked fifth on our roundup of the nation's most miserable cities earlier this year.
Denver, Colo., No. 11 on the list, ranks in part for its culture rank (19 of 379) and 4.4% income growth (77 of 379). The crime rating of Cambridge, Mass.' crime rating (29 of 379) helped it to No. 7 on our list. And though Little Rock, Ark., landed at 15, it boasts a 6% income growth rate (18 of 379) and a 5.4% unemployment rate (59 of 379.)
To be sure, Portland isn't perfect either. Its 5.9% unemployment rate is much lower than Modesto's, but it's still double its 2007 unemployment rate of 3.7%.
"There are less jobs to go around, but our main industry of tourism hasn't been affected much," says Perrin. "People are still coming to Portland."
Residents remain optimistic that their easy-living city will retain its desirability.
"Portland draws so many people because it has a strong arts, cultural, contemporary music and foodie scene," says Janis Beitzer, executive director of Portland's Downtown District. "It's a place where people set their own pace of life and work."
In Pictures: America's Most Livable Cities
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