Category: Tax Credit (4)

Here is an interesting article we came across on… 

“’Tis the season of giving. But if you’re tired of the offerings at the mall, why not consider giving your children something grander, like the gift of a down payment to buy a home—or even a home itself?

Uncle Sam encourages such generosity, at least within limits (the IRS site has details). You and your spouse are each allowed to give gifts of $13,000 of money or property to as many people as you want, without triggering taxes for you or the recipients. If you give more than this amount to any one person, the excess counts, dollar for dollar, against your $1 million lifetime gift-tax exclusion ($2 million for married couples).

So if you and your spouse wanted to give $50,000 to your son for a down payment on a house, together you could gift him $26,000 this year, and $24,000 next year, tax-free.”

This gift could help him qualify to buy a home before the federal government’s tax credit stimulus expires early next summer. If the gift allows him to make a down payment of 20% or more of the sales price, he’d also avoid having to pay private mortgage insurance.

Or, if you are interested in selling your home to your child, you could gift some of the equity in the home rather than cash. Lenders usually will accept such a gift, but may require two appraisals to make sure that the home is really worth the sales price, and will ask you to sign an affidavit affirming that you are giving a gift and don’t expect repayment.”

To read more, go to:

dollar_bills1If you’ve asked yourself lately, ”What can my country do for me?” ask no longer and call your Calcagni Associates REALTOR to make that home purchase you have been putting off. President Obama’s American Recovery and Investment Act signed into law on Feb 17, 2009 provided first time home buyers a unique opportunity to receive up to $8,000 in the form of a credit when purchasing a home between Jan 1 and Dec 1, 2009.

(Of course there are always stipulations and not all buyers will qualify for the full $8,000 credit.)

Here Are the Highlights:

  • First time buyer means purchaser (and purchaser’s spouse). Purchaser may not have owned a principal residence in 3 years previous to purchase.
  • No repayment of credit for purchases made between Jan 1 and Dec 1, 2009.
  • Repayment of entire credit applies if home is sold within 3 years of purchase date.
  • Purchasers who utilize revenue bond funding (CHFA loans, etc.) can use credit.
  • Income limits apply of this program and are as follows:
    • Full amount of credit available for individuals with adjusted gross income of no more than $75,000 for singles and $150,000 for joint returns.
    • Over those amounts the credit phases out.
  • Credit can be used to eliminate income tax liability for the year of the purchase.
  • Credit will be received when tax return is filed.

As always if you have questions about your own particular situation we advise you to consult with your tax advisor.

So don’t wait. Together with low interest rates, well priced homes and wonderful choices this is one opportunity you don’t want to miss. Our Calcagni team is ready to assist you. All you need do is make a call or email us. Do it now.

Written by Joel Grossman, CRS, GRI, Realtor, Calcagni Associates

People love to talk about real estate! Whether it’s at my doctor’s office, hairdresser or just visiting with friends, I get asked about real estate all the time. They know that I handle the marketing and do not sell, but they can’t help themselves – they just have to ask.

Especially now with all of the negative press about the housing market. I quickly remind them that they need to keep in mind that the things they hear or read about in the news aren’t always indicative of what’s really happening in our local market. And although I can’t deny that sales have slowed down over the past year – houses are still selling!

In January alone (typically a slower month in real estate), we saw showings on our properties increase by a rate of 33% over last year during the same 1-month period. What does this mean? Buyers are out there and they are looking to buy.

Written by Kathy Bauer, Director of Marketing, Calcagni Associates