DC CLOUT "DC Area Real Estate Buzz"

How to Get the Extended Home Buyer Tax Credit

You’ve decided to purchase a home and take advantage of the Extended Home Buyer Tax Credit. Here's what you have to do to get your benefit:

1. Close on your home purchase between November 7, 2009 and April 30, 2010, or have a binding written contract by April 30, 2010 and close by July 1, 2010.
   
2.  Decide whether to: 
   • apply the credit to your 2009 tax return, filed on or before April 15, 2010;
   •  file an amended 2009 return; or, 
   • apply the credit on your 2010 return, filed on or before April 15, 2011.
3. Attach documentation of purchase to your return.

Documentation of Purchase

Details concerning the precise documents required to confirm your purchase have not yet been released. When this information becomes available, we will include instructions and links to the appropriate forms.

When to Apply the Credit

Buyers purchasing homes on or before December 31, 2009 may claim the credit on their 2009 tax returns.

Buyers purchasing in 2010 will have the option to:

•  Claim the credit on their 2009 return, even if the purchase is completed after December 31, 2009;
•  File an amended return for 2009 if their purchase is completed after April 15, 2010; or,
•  Claim the credit on their 2010 tax returns.

Applying the Credit to Your 2009 Taxes

You will need to do three things to claim the credit on your 2009 tax return:

1. Fill out Form 5405 to determine the amount of your available credit;
2. Apply the credit when you file your 2009 tax return or file an amended return;
3. Attach documentation of purchase to your return or amended return.

source  nar

provided by Al Matlock   'DC's Condo Guy'  and  DC Clout DC's Home Buying and Selling Resource Center.

Homebuyers Tax Credits Comparison Chart

click image for larger view....

soruce nar

provided by Al Matlock  dcrealtor@live.com

Obama signs - Extended Home Buyer Tax Credit 2009/2010 - The Specifics Here

Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.

Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
  
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer's Credit Amount Determined?

Each home buyer’s tax credit is determined by tow additional factors:

1. The price of the home.
2. The buyer's income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

Source GCAAR 

furnished  by Al Matlock DC's Condo Guy andDC Clout - DC Home buyers and sellers resource center

What You Can Do to Improve Your Credit

Credit scores, along with your overall income and debt, are big factors in determining whether you’ll qualify for a loan and what your loan terms will be. So, keep your credit score high by doing the following:

1. Check for and correct any errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.

2. Pay down credit card bills. If possible, pay off the entire balance every month. Transferring credit card debt from one card to another could lower your score.

3. Don’t charge your credit cards to the maximum limit.

4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.

5. Don’t order items for your new home on credit — such as appliances and furniture — until after the loan is approved. The amounts will add to your debt.

6. Don’t open new credit card accounts before applying for a mortgage. Too much available credit can lower your score.

7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.

8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.

courtesy of DC's Condo Guy  

Obama: Nobel Peace Prize 'A Call to Action'

Going Green Tip #5

More Green Tips coming...   or visit DCClout.com  DC's Home Buyers and Sellers Resource Center  and DC's Condo Guy  

Going Green Tip #4

More Green Tips coming...   or visit DCClout.com  DC's Home Buyers and Sellers Resource Center  and DC's Condo Guy  

Washington DC's Dupont Circle has a Perfect WalkScore 99

Spend any time in and about Dupont Circle and you feel as if you are in the center of it. It’s no illusion, you are. You name it and one of the street or avenues that intersect Dupont Circle leads there.
Dupont is diverse, international, cultural, artistic, a bit quirky and Funky.

And now another adjective has been affixed to the historic neighborhood, walkability. Dupont is the most walk friendly neighborhood in DC. It has a walkscore of 99 on a 100 point scale. “Walkscore calculates the walkability of an address by location nearby stores, restaurants, schools, parks, etc. Walk Score measures how easy it is to live a car-lite lifestyle…..”  (Walk Score courtesy of walkscore.com) Visit Walk Score to see how other city neighbors compare.

Need a faster mode of trans then hop on the Metro or grab a bike from the SmartBikeDC rack at the circle on Mass. For an even faster mode grab a zip car at one of the two convenient neighborhood locations.

But there is little need to venture beyond the neighborhood for eateries, fine dining, shopping, or nightlife. There is even a neighborhood park, that doubles as a hangout, the Circle. Now what other city neighborhood can say that.

Courtesy of DCClout.com  DC Home Buying and Selling Resource Center

Marion Barry

Just read an article in the Washington City Paper (Barry: Boss For Life)  about the Honorable Marion Barry.  I don't usually make such comments from this blog, but I have a few things to say here. If I were a Ward 8 resident Barry would be my first choice to represent me in the council. The man is a political animal. I've seen him work a room. He knows how to work the system. He still has political clout in this town and is a savy politician. He can and will bring far more resources to the ward ( a ward that desperately needs resources) than any of the current contenders.

read article WCP

Packing Tips to Get You Moving

Packing is one of those dreaded but necessary chores of moving. Not only is it time consuming, but it sheds light on how much we really have accumulated since the last move. But it can be a manageable task by starting early and having a plan.

Don’t wait until the last minute.
Moving is stressful enough. Give yourself at least six weeks, which gives you enough time to pack a few boxes each day.

Take inventory of your items to determine how many packing boxes you will need. As a rule of thumb, use small boxes for small, heavy items such as books and canned goods; medium-size for bulkier, not so heavy items like linens and pots; and reserve larger boxes for very bulky lightweight items such as lamp shades.

Obtain boxes from a moving company or collect sturdy boxes from local supermarkets and liquor stores. Also, consider investing in specialty boxes, such as wardrobe and mirror/painting cartons. Wardrobe boxes are specially designed to transport clothing on hangers and mirror/painting cartons adjust to fit large sizes.

Besides boxes, make sure you have marking pens, packing peanuts or bubble wrap, strong 2-inch wide packing tape, and unprinted newspaper. The ink from printed newspaper can rub off onto your individual items.

Pack strategically.
Plan out how you will pack up your belongings. Decide what needs to be packed first such as seldom used and out-of-season items. Then work your way up to everyday items, like dishes.

It’s also a good idea to pack one room at a time. Places like your attic, basement, garage and storage closets are a great place to start. Clearly mark on each box the contents and the room it will go in at your new residence. For fragile items, clearly mark “fragile” on the box and a directional arrow to indicate the correct upright position.

Decide what you will need to access as soon as you arrive at your destination. Write “Open First” on these boxes and load them onto the truck last or put them in your car. You also should pack a box with essentials for your first few nights, such as prescription medicine, toiletries, a telephone, clothing, towels, toilet paper, and bed linen.

Make sure to protect your belongings.
You’ll want to make sure that your belongings get from Point A to Point B in one piece. To avoid damage, follow these packing techniques.

Computers: Before packing your computer, back up your data on either an online service or a portable hard drive. If possible, pack the computer in its original boxes and packaging. If you no longer have them, use a box with shock resistant insulation or create padding at the bottom and all around the sides. If you will be using packing peanuts, wrap the computer in a plastic bag so the peanuts won’t get inside and damage the computer. Place the CPU in the center of the box with the motherboard side lying flat on the bottom. Protect the top with more padding. Make sure the computer is a tight-fit in the box. Use this technique for your monitor and printer. Don’t forget to remove the print cartridge and paper from the printer. This same procedure can be used with other electronics.

Glasses and stemware: Stuff a bit of paper inside a glass, wrap the stem, and then wrap each piece individually. Place glasses face down on a 3- to 4-inch cushion of crumpled newspaper. Top off the box with 2 to 3 inches of crumpled paper.

Plates: Create a 3- to 4-inch cushion of crumpled paper in a sturdy box or dish pack. Wrap up to four plates at a time by taking two sheets of newspaper, place a plate slightly off center, fold paper over the plate, then stack a plate on top of the covered plate. Fold paper back over the second plate and repeat this process until four plates are wrapped. Now wrap the bundle and place it on end in the box. Continue to fill the box with bundled plates, and then top it with 2 to 3 inches of crumpled paper.

Large furniture pieces: Have large plastic bags or shrink wrap on hand to protect furniture. Use rags, blankets, comforters and towels for padding.

Artwork and mirrors: Wrap all pieces individually with bubble wrap or cardboard. For artwork framed behind glass or mirrors, tape an “X” across the mirror to keep pieces in places in case it should break. Place each piece in its own flat, fitted box and fill in any space with crumpled newspaper.

A few other tidbits.
 

• Avoid damage from leakage by packing your liquids (including medicine) in leak proof containers such as zippered plastic bags. Plastic bags also come in handy for small odds and ends.
• Keep box weights to 50 lbs. or less.
• Use masking tape to secure lids to jars and bottles; hold down moveable parts; and affix nuts, bolts, screws or nails to associated items.
• Place a sock filled with coffee grinds or baking soda in your washer, freezer, and refrigerator to prevent odors.

courtesy of Al Matlock DC Realtor for DCClout.com