Tax | Miami Real Estate Properties

Posts Tagged ‘Tax’

Tax Credit For Current Home Owners

Friday, February 5th, 2010

Although most of the real estate news seems to focus on the First Time Home Buyer Tax Credit, there has also been a new tax credit that will be signed in that is geared to help existing home owners. The goal behind this bill is to encourage potential buyers who already own a home and have maintained (or paid in full) their mortgage bills steadily for at least five years. These buyers would usually be moving up, or buying a larger or more expensive home.
-Buyers must have owned and lived in their previous home (in other words, as a primary residence) for five years in a row out of the last eight years.
-The amount is 10 percent of the home’s purchase price, with a maximum credit of $6,500.
-The purchase price of the home must be $800,000 or less.
-The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, if a binding sales contract is signed by April 30, 2010, the home purchase qualifies (as long as the closing is completed by June 30, 2010).
-The income for a single taxpayer cannot exceed $125,000. Married couples filing jointly must not have a combined income of more than $225,000.

Full Article

For More Information Visit: http://www.findpropertymiami.com

Tags: Credit, Home, Tax
Posted in Real Estate | No Comments »

Tax When Buying a Home

Wednesday, January 20th, 2010

Almost all of us want to own a house. We work hard to obtain it and make sure that we find our ideal home. There are several benefits we can enjoy because of home purchase as well. Among them are the tax deductibles. There are different amount we can deduct to reduce our tax payments. Among them are the interest and the property taxes. One of the things you need to understand is the word, point. The term point pertains to the origination fee charged to you when you apply for a mortgage loan. The said fee is normally a percentage of the amount you borrowed. A percentage is equivalent to one point. The term point is used to make the value deductible from your taxable amount. There are other deductible amounts when you buy a house. However, there are conditions you have to meet. In order for the points to be deductible, they have to be subtracted during the same year they are paid. You should also use the house you are living in as a form of security for the amount you borrowed. Finally, the loan you made should be intended for building or purchasing of a house. Aside from the above mentioned amounts, there are other items you can deduct. As mentioned earlier, you can deduct the interest on the mortgage. This can amount to as much as one million dollars. This is also true for other types of properties like the vacation home. Although this is the case, there are other factors to be considered. To be certain ask your financial consultant regarding this matter. The property taxes are another thing that you can deduct. You need to pay property tax if you purchase a property. The amount of the tax depends on the value of the property and the current tax rate. This is calculated by multiplying the market value by the tax rate. It would be ideal if you compute the property tax first before you purchase a property. If you are on a tight budget, you better calculate it first. You need to get the value of both the house and the land if you are to compute this. It is also essential that you ask an official tax assessor to determine this. Remember the tax exemptions for this too.

Full Article

For More Information Visit: http://www.findpropertymiami.com

Tags: Buying, Home, Tax
Posted in Real Estate | No Comments »

Homebuyer Tax Credit

Monday, January 4th, 2010

Homebuyers who act quickly may take advantage of the extended and expanded federal homebuyer tax credit. Unlike previous federal homebuyer tax credits, this extended and expanded version does not have to be paid back. Remember back in November, 2009 when The President signed into law the home buyer tax credit extension? Well, time is running out for would be home buyers because the extension was not a very long one. Those who are considering purchasing a home in 2010, may take advantage of this tax credit if they purchase their home before the deadline. A homebuyer must purchase a home before April 30, 2010. Unless they already have a home picked out, this means they should get moving on it. The buyer must have an accepted contract by April 30, 2010 and they will have until June 30, 2010 to close.

Searching for a home and negotiating the terms of a purchase contract is not an easy task and its better to get it done early rather than to close too late to pocket the tax credit. Those who have experience purchasing homes can attest to the considerable time delays of what should be a simple negotiation. There are counter offers and counters to the counters and sometimes ridiculous demands from the sellers. Swooping in at the last moment with an offer is not the proper strategy for a buyer who is serious about receiving the tax credit. What does the extension and expansion do? Well for starters, it includes not only first time home buyers but also existing homeowners. The previous federal homebuyer tax credit only included first time homebuyers. Now, existing homeowners can receive a tax credit up to $6,500.00 in addition to the first time home buyers receiving a tax credit up to $8,000.00. First-time home buyers and existing homeowners who purchase homes between November 7, 2009 and April 30, 2010 can participate. A current homeowner is defined as a homeowner who has used the home being sold as a principal residence for five consecutive years within the last eight years.

Full Article

For More Information Visit: http://www.findpropertymiami.com

Tags: Credit, Tax
Posted in Real Estate | No Comments »

Property Tax When Buying a House

Thursday, December 31st, 2009

When you are planning to buy a house, you will surely look for property listings on all possible resources that you can think of. Searching for potential houses can be a lot easier if you know exactly what you are looking for in your dream house. But the sage will not end there, before you can finally decide which one to choose certain costs must also be considered. True enough, becoming a home buyer must be cautious in his choices and very particular of every expense that comes in his way to be able to end up getting a worthwhile investment. These home buying expenses cover the following items like insurance, closing and taxes specifically property. These taxes must be put on top of the list when you are in search for the right house. They are inevitable in every home buying process, and thus never attempt to skip or avoid them. When you opt for applying mortgage loans, to help finance your home purchase plans, items like property taxes, insurance charges and other costs are already paid. These property taxes must be paid off during the first quarter of your home buying activity. In fact, there are sellers who shoulder these property taxes. But when the closing is all done, the home buyer is held liable for paying all of them. All buyers are required to pay these taxes as mandated by federal law.

In some cases, the lender will persuade you to use and create an account that holds two months of deposits before you close the deal. True enough, the Escrow account is intended to pay off the property taxes and hazard insurance. If you are wondering what is the importance of such Escrow account. Well, it is just like asking why you simply can not settle your own property taxes. On the other hand, people with Escrow account and loans are said to default on loan dues. Tax defaults are impossible to occur during the end of the year for borrowers who lack funds intended for annual tax dues. Payments done every month are then deposited into the Escrow account to secure that you are paying your taxes promptly.

Full Article

For More Information Visit: http://www.findpropertymiami.com

Tags: Buying, Property, Tax
Posted in Real Estate | No Comments »

Commercial Property Tax Credits

Thursday, December 24th, 2009

The Environmental Protection Agency has reported that commercial buildings account for nearly one-fifth of the entire amount of greenhouse gas released into the atmosphere on an annual basis. There are a few different views on the role of the government in controlling or limiting the impact that commercial buildings have on the environment. While some believe that the government should have an active role in this issue, setting severe limitations and putting fines and such other measures into effect, others believe that the federal government should take a less active and direct role in the issue and create incentives for those who go through measures to reduce their involvement in potential environmentally violating issues.
What Are Greenhouse Gases?
Greenhouse gases are gases that are released into the atmosphere and cause heat to be trapped toward the surface of the Earth. There is many a study out there that has attributed the use of coal, oil, and other fossil fuels to the increasing temperature of the surface of the earth that is attributed to the excess of greenhouse gases, but the lack of solid proof and assurance in this is what has caused speculation with this issue. Of course, a certain level of greenhouse gases in the atmosphere is important, as that is what keeps the planet insulated from the effects of the sun or the freezing cold of the atmosphere but the increasing temperature of the earth is alarming scientists, and something must be done about it. For this reason, there have been many tax credits for environmentally friendly projects and businesses both proposed and implemented. As a matter of fact, Congress has made environmental issues like climate change and the ever increasing level of greenhouse gases in the atmosphere one of their top priorities. There is a great deal of support for those who are opting to use clean energy technologies and options, and one of these many types of support are tax incentives for those who operate environmentally friendly commercial buildings.

-EPA’s Green Star Program
Programs like Energy Star and the Green Lights program by the Environmental Protection Agency are two of the more popular and well-known programs of this nature, allowing people to save money by installing more efficient lighting options as well as preventing the release of billions of tons of ecologically damaging greenhouse gases into the atmosphere.
-The Energy Star Program
The Energy Star program also provides for massive savings for any American consumer or commercial property owner. By making use of Energy Star lighting and other appliances, they are saving money on electricity as well as preserving fossil fuels and reducing the amount of greenhouse gases released into the air. Many people have seen or purchased products with the energy star label on it; these are products that adhere to the Energy Star program standards, and are excellent ways of using electricity more efficiently. There are many tax incentives in place currently for those who modify their properties to meet certain qualifications. Those who make modifications seeking approval or a certain status from the Leadership in Energy and Environmental Design or LEED may also qualify for awesome tax bonuses and incentives as well, especially those larger buildings that have more to offer by way of making environmentally friendly modifications to their buildings.

Full Article

For More Information Visit: http://www.findpropertymiami.com

Tags: Commercial, Commercial Property, Tax, Tax Credits
Posted in Real Estate | No Comments »

First-Time Homebuyer Tax Credit

Monday, December 21st, 2009

Few homebuyers and home sellers know the proper name of the legislation that made the first-time homebuyer tax credit program possible, but many thousands of them have saved a tidy sum since it was passed in 2008. The official name of the tax credit extension passed by Congress recently is the Worker, Homeownership and Business Assistance Act of 2009. This piece of legislation has not only extended the period of time that homebuyers can take advantage of the program, it has also been expanded to include qualified repeat homebuyers. The program has provided some much-needed relief for real estate markets and real estate professionals around the country, particularly in those markets hit hard by foreclosures, plummeting home values and very little action on the market. The extension has also expanded the number of people who can take advantage of the program, raised income levels and allowed people other than first-time homebuyers to benefit, among other changes. Here’s a review of the first-time homebuyers tax credit, the extension and the new changes.

People who had not owned a primary residence in the three-year period prior to the purchase of a home still qualify as first-time homebuyers and may take advantage of a tax credit up to $8,000. The credit never has to be repaid, is equal to ten percent of the home’s purchase price up to $8,000 and can only be applied to homes priced $800,000 or less. The program, set to expire in November 2009, now includes homes purchased on or after January 1, 2009, through April 30, 2010. If a home is sold with a binding sales contract signed by April 30, 2010, it will qualify if the purchase is completed by June 30, 2010. Another change involves the income limit for people taking part in the tax credit extension. Initially, people who bought homes on or after January 1, 2009 and on or before November 6, 2009, had to earn $75,000 or less as single taxpayers or $150,000 as a couple filing jointly to qualify. The extension now applies to homes bought after November 6, 2009 and on or before April 30, 2010 and single taxpayers making $125,000 or less and married couples earning $225,000 or less qualify for the program.

Full Article

For More Information Visit: http://www.findpropertymiami.com

Tags: Tax, Tax Credit
Posted in Real Estate | No Comments »

Home Buyer Tax Credit

Wednesday, December 16th, 2009

Who is Eligible for a Home Buyer Tax Credit?
- First Time Home Buyers
- A First Time Home Buyer is defined as someone who has not owned a home within the last 3 years. This means that a person who sold their home more than 3 years ago and has been renting ever since can be considered a First Time Home Buyer in addition to individuals who have never owned a home before.
- Long Time Home Owners
- A Long Time Home Owner is defined as someone who has owned a home and lived in it for at least 5 out of the last 8 years. This person can sell their existing home and qualify for a tax credit on their new purchase.
- For First Time Home Buyers the credit is equal to 10% of the purchase price of the home, up to $8,000.
- For Long-Time Home Owners the credit is equal to 10% of the purchase price of the home, up to $6,500.
- The government has extended these credits until April 30, 2010. To get the credit, a property must be under contract by the end of April and must close by the end of June.

Full Article

For More Information Visit: http://www.findpropertymiami.com

Tags: Credit, Tax
Posted in Real Estate | No Comments »

Tax Lien Sale

Friday, December 11th, 2009

You may either be the owner of a property for auction or you may be the investor to purchase the auctioned property. This article will bring a better understanding for your auction regarding Tax Lien Sales. It is best that we know our position before making a decision so we will understand the total benefit that we may get from it and the available options. The next thing to consider with this Tax Lien Sale is the terms governing this sale as it may vary from county to county and state to state. If you are a real estate owner with delinquent property account and/or unpaid taxes, it could be a big burden and headache to think of those debts. You may have encounter a bankruptcy, loss of job, and/or any economic crisis as your mortgage/real estate was left unpaid. In these cases, there are options for you to choose from, one of those is a Tax Lien Sale. This is usually made by public auction by the government or a mortgage holder.

While you are looking for ways to bring your property back to up-to-date status, this auction will help you pay your tax debt and delinquent balance. The winner will serve as an investor. It means that he will provide a money loan so you can pay your past dues and make your mortgage up-to-date. It works by setting a certain monthly rate at a given period of time. Instead of paying the delinquent account, you will be paying the loaned money used to pay your debt. There is a so called Redemption Process which means that you are given a specific time duration so you can look for other means to bring your financial status back to normal.

Full Article

For More Information Visit: http://www.findpropertymiami.com

Tags: Tax
Posted in Real Estate | No Comments »

Obama Homebuyer Tax Credit

Thursday, December 3rd, 2009

President Obama recently signed into law H.R. 3548, an expansion and extension of the homebuyer tax credit that would otherwise have expired at the end of November. Both the House and Senate passed the new legislation by wide margins. Instead of just extending the current $8000 for a few more months, they added a credit for current homeowners who purchase a new primary residence between November 7 and April 30, 2010. The credit will be up to $6500 for married joint income tax filers and $3250 for single filers and married people, filing separately. One restriction is current homeowners must have resided in the home being sold consecutively for 5 of the last 8 years. A contract to purchase must be in effect on April 30 or before, and the purchaser will have until July 1, 2010 to close.

There are also income limits attached to the new home seller credit: $125,000 for single tax filers and $225,000 for married filers. The home may not cost more than $800,000, and the home may not be purchased by a dependent. They must live in the new residence for at least three years or they will need to pay the credit back. The government estimates that 70 percent of homeowners will now be eligible for a credit should they choose to sell their home and purchase a new one within the designated timeframe. What we do not see in the law is any restriction that would apply to homeowners who are selling their home by Short Sale. Normally, a seller who sells a home at a loss that the lender absorbs is not allowed to benefit from the sale of the home. However, in an effort to provide incentives for everyone to make property productive again, the federal government has been showing more interest in helping troubled homeowners more directly. The fact that the rules for this tax credit do not seem to exclude Short Sale homeowners is an indication of the government’s recognition that people in this situation are hurting and could use the tax break in order to get a clean start.

Full Article

For More Information Visit: http://www.findpropertymiami.com

Tags: Credit, Obama, Tax
Posted in Real Estate | No Comments »

Home Buyers Tax Credit

Tuesday, December 1st, 2009

The federal tax credit for first-time home buyers is to ensure that homebuyers will become home owners utilizing the $8000. Not only will the tax credit help the real estate industry, it will more importantly help increase home ownership. The incentive is for homebuyers purchasing a new or pre-owned house. To qualify for the tax credit, you must buy the house before May 1, 2010 (with the closing date before July 1, 2010). If you construct your house, the purchase date is the date that you occupy the home. Even if you were a homeowner before, you can qualify for the tax credit if you did not own a home within the last 3 years of the purchase date.

For the purpose of the first-time home buyer tax credit, a first-time homebuyer is one who is a tax payer that has not owned a principal home at any time during the three years prior to the date of purchase. The income limits for the home buyers: Married couples modified adjusted gross income should be less than or equal to $150,000 and for other tax payers the modified adjusted gross income should be less than or equal to $75,000. This will enable many home buyers to utilize the tax credit to buy Dallas homes for sale in the DFW real estate market.

Full Article

For More Information Visit: http://www.findpropertymiami.com

Tags: Credit, Tax
Posted in Real Estate | No Comments »