Qualified 2009 and 2010 first-time home buyers can get up to 10% of the home’s purchase price or a maximum of $8,000. In November 2009, legislation extended a tax credit of up to $6,500 (or up 10% of the home’s purchase price) to long-time residents of the same primary residence if they purchase a new main home. To qualify, eligible taxpayers must show that they lived in their previous homes for a five-consecutive-year period during the eight-year period ending on the closing date of the new home.
Important details to remember:
- You don’t have to pay it back (as long as you stay in your qualified home for at least 36 months).
- If you qualify for the credit, you can still apply it to this year’s taxes, even if you’ve already filed your returns, or save it for your 2010 returns.
- This is a true tax credit, not a deduction. If you qualify for the full credit, there will be an actual dollar-for-dollar reduction of up to $8,000 (or up to $6,500 for qualified repeat buyers) on your tax bill now or in 2010.
- New income qualification limits have been put in place that expanded the pool of qualified buyers.
- If you purchased a qualified home or plan to after reading this article, you must have a contract in place by April 30, 2010 (with closing to take place by June 30, 2010), so don’t wait!
There are, of course, other details and qualification requirements and restrictions that you’ll need to consider. For a comprehensive explanation, contact your CPA.
Source: Stephen Steakley <firstname.lastname@example.org>
There were no surprises at today’s auction. 31 units were auctioned at an average of 30% off the original list price. This is no surprise since there have been other developments that have offered similar discounts without having to compete in an auction environment. In other words, the downtown Austin condos that were bid upon today represent today’s market value of The Sabine on Fifth at an average $234/SF.
The two-bedroom units turned out to be the best deals. The final bid price for Unit 605 represented the best deal in the entire auction in my opinion. The final bid price was $276,000*; however, once you account for the mandatory 4% buyer premium, the actual final bid price was $287,040* (or $196/SF)! That was approximately 34% off the previous list price for a large 2-bedroom with downtown Austin views. Pound-for-pound Unit 907 was the best price per SF at approximately $185 per SF (or a final bid price including the 4% premium of $263,120*)…39% off previous list price!
What can be concluded from this auction? Here are some initial thoughts: 1) The units were sold at fair prices; in other words, no steals or bad deals. 2) The downtown inventory is shrinking; in other words, similar deals are becoming more rare to find. 3) There is strong demand for living downtown in a building with limited amenities; in short, buyers want to be in downtown Austin whether it’s a block from Whole Foods, in the Entertainment District or on the lake.
*Please note: All bids were subject to final seller approval, so the final bid price does not necessarily reflect the final contract price agreed upon both parties.