YOUR Marlboro, Manalapan, Freehold Real Estate, Local Info & More Blog! by AMBER NOBLE-GARLAND

"BANK APPROVED SHORT SALE" 

859 MARIPOSA CT. IN THE POINT DE JARDIN COMMUNITY ~ MARLBORO TOWNSHIP, NJ

Offered at $280,000

Amber Noble-Garland | Weichert Realtors (Marlboro office) | 917-723-5645     Mariposa, Marlboro, NJ "BANK APPROVED" SHORT SALE! COMMUTERS LOVE THIS BEAUTIFULLY MAINTAINED & UPDATED 3-BDRM + 2.5 BATH MARLBORO TOWNSHIP TOWNHOME NEAR RTS 9 3BR/2.5BA Townhouse offered at $280,000             Year Built Unspecified Sq Footage Unspecified Bedrooms 3 Bathrooms 2 full, 1 partial Floors 2 Parking 1 Uncovered spaces Lot Size Unspecified HOA/Maint $0 per month   DESCRIPTION "BANK APPROVED" SHORT SALE! COMMUTERS LOVE THIS BEAUTIFULLY MAINTAINED & UPDATED 3-BDRM + 2.5 BATH HOME NEAR RTS 9, 18, GS Pkwy, Turnpike! This is the LOWEST PRICED unit in POINT DE JARDIN. NEWER ceramic tile, stainless steel appliances, gas marble-encased fireplace, crown molding, recessed lighting, vaulted ceiling in master bdrm suite feat walkin closet + prvt bath, two addtl nicely sized bdrms and laundry room upstairs. Great shopping and restaurants around the corner. Top ranked Marlboro Township school district...WOW! CHECKOUT -> www.AmberLovesRealEstate.com   see additional photos below    PROPERTY FEATURES Central A/C Central heat Fireplace High/Vaulted ceiling Walk-in closet Tile floor Living room Dining room Dishwasher Refrigerator Microwave Stainless steel appliances Washer Dryer Laundry area - inside     COMMUNITY FEATURES Guest parking Swimming pool(s) Playground   ADDITIONAL PHOTOS Photo 1 Photo 2 Photo 3 Photo 4 Photo 5 Photo 6 Contact info:      Amber Noble-Garland Weichert Realtors (Marlboro office) 917-723-5645 For sale by agent/broker Equal Opportunity Housing Posted: Mar 2, 2009, 10:13pm PST

Information courtesy of:

AMBER NOBLE-GARLAND
Weichert, Realtors (Marlboro ~ Manalapan office)
455 Route 9 South
Manalapan, NJ 07726
917-723-5645 - cell
732-536-4400, ext 199 - office

www.AmberLovesRealEstate.com

"Your Reliable Resource For Marlboro Real Estate, Local Info & More" 

I imagine that the new $8000 tax credit is on the tip of most people's tongues these days...at least I know it is in my corner of the world.  Whether you agree with the basis of the $8000 tax credit or not, there's no denying that millions Americans are looking for a reprieve or any sign of "light at the end of the tunnel." 

Below is a collection of a 5 different questions I've received over the past couple of weeks from buyers, sellers, family members and former colleagues who are considering home ownership.  The people asking the questions might be different, but it seems like everyone is curious about the same thing.  Questions #1, #4 and #5 seem to be the ones I keep getting the most.

I've too have asked a bunch of questions and enslisted assistance from two reliable CPAs (certified public accountants) I've known for years. See the Q&A below. 

1.  Q:  I'm hearing conflicting information about this tax credit bill President Obama signed. Is the $8000 tax credit for "first-time home buyers only" or all buyers? I am so confused about how this thing works! 

AMBER:  The $8000 credit included in the final version of the economic recovery/stimulus plan is for first-time home buyers.  By definition (for the purpose of this government plan) a "first-time home buyer" is someone who has not owned a principal residence for 3 years before prior to buying a different house.

2.  Q:  We are thinking about continuing to live with our in-laws in Marlboro until the baby arrives. We bought a modest vacation condo down the shore last year in the Spring before we met you. Will that count as our $8000 tax credit? What if we decide to still purchase a primary residence before the end of 2009, can we still be eligible for the $8000 credit?

AMBER:  No, if you've owned a "vacation home" but not a principal residence within the past 3 years, you would still qualify for the $8000 tax credit, and would be eligible to receive it as long as you purchase a "primary residence" within that 2009 timeframe. To be sure, double check with your accountant.

3.  Q:  We have friends in Freehold who bought their first home in July of 2008.  They said if we buy in 2009 we'll have to pay back the tax credit just like they will. Is that true? 

AMBER:  If your friends are entitled to a $7500 tax credit and they purchased in 2008, the money they will receive will likely have to be repaid over time.  However, if you buy a home between January 1, 2009 through December 1, 2009, you shouldn't have repay the $8000 credit.

4.  Q:  We heard the $8000 tax credit is for low income families only. We make a little over $100,000 in combined income. Does that fall within the financial requirements?

AMBER:  The $8000 tax credit comes with income limitations, but it's not for low-income families only.  Married couples must have a modified adjusted gross income (better know as AGI) of no more than $150,000 and $75,000 per year is the cap for single people in order to qualify for the full credit.  There is a possibility that any first-home buyers earning more than $150,000 may qualify for a reduced tax credit, but this hasn't be fully determined or approved yet.

5.  Q:  What happens if we buy a home in 2009, but for some reason we have to sell it within the next 2 years? 

AMBER:  In order to receive the $8000 tax credit and not have to pay it back to the government, you cannot sell the home in a time period any less than 3 full years from the date that title/deed was actually transferred into your name. If you do sell in less than 3 years you will very likely have to pay the $8000 back to the US government.   They might make an exception for justifiable and unforeseen circumstances such as death, armed forces deployment or death, but that is not a guarantee.

NOTE**I encourage anyone who has additional questions about tax credits or anything related to the IRS, to check with their own licensed CPA and go to www.IRS.gov for the most comprehensive and up-to-date professional advice.**

Information courtesy of:

AMBER NOBLE-GARLAND
Weichert, Realtors (Marlboro ~ Manalapan office)
455 Route 9 South
Manalapan, NJ 07726
917-723-5645 - cell
732-536-4400, ext 199 - office

www.AmberLovesRealEstate.com

www.AmberNobleSellsHomes.com 

"Your Reliable Resource For Monmouth & Middlesex County Real Estate, Local Info & More" 

Are you a first-time homebuyer considering purchase a condo, townhouse or single family home?

Ever thought about moving to Manalapan, Marlboro, Freehold, Old Bridge or any of the great commuter-friendly towns Monmouth & Middlesex County NJ offers? 

Well if so, help has arrived!

On July 30, 2008, President Bush signed a major housing bill (H.R. 3221) into law. As part of the housing bill, Congress has created a new, temporary tax credit to provide an incentive for first time homebuyers across every state in America. The $7500 credit will be available for the purchase of a principal residence on or after April 9, 2008 and before July 1, 2009.

Checkout this link from the National Association of Realtors website for specifics about the HOUSING AND ECONOMIC RECOVERY ACT OF 2008 and FIRST TIME HOMEBUYER TAX CREDIT.

HERE IS A LIST OF FAQ'S (FREQUENTLY ASKED QUESTIONS ABOUT THE $7500 TAX CREDIT):

1. Who is eligible to claim the $7,500 tax credit?
First time home buyers purchasing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.

2. What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

3. How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. No other applications or forms are required. No pre-approval is necessary; however, prospective home buyers will want to be sure they qualify for the credit under the income limits and first-time home buyer tests.

4. What types of homes will qualify for the tax credit?
Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.

5. Instead of buying a new home from a home builder, I have hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after April 9, 2008 and before July 1, 2009.

In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

6. What is "modified adjusted gross income"?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.

To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

7. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $7,500 are available for some taxpayers whose MAGI exceeds the phaseout limits. The credit becomes totally unavailable for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000.

8. Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $7,500 by 0.5. The result is $3,750.

Here's another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer's income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $7,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,625.

Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

9. Does the credit amount differ based on tax filing status?
No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files their taxes as "married filing separately" (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.

10. Are there any circumstances for which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?
In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.

11. I heard that the tax credit is refundable. What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).

12. What is the difference between a tax credit and a tax deduction?
A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS.

A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer's tax liability would be reduced by $1,125 (15 percent of $7,500), or lowered from $7,500 to $6,375.

13. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program? No. The tax credit cannot be combined with the MRB home buyer program.

14. I live in the District of Columbia. Can I claim both the DC first-time home buyer credit and this new credit? No. You can claim only one.

15. I am not a U.S. citizen. Can I claim the tax credit?
Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.

16. Does the credit have to be paid back to the government? If so, what are the payback provisions?
Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

17. Why must the money be repaid?
Congress's intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.

18. Because the money must be repaid, isn't the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?
Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.

19. If I'm qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my     2008 tax return?
Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

20. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

21. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2008 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the future home buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment. Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding.

Information Courtesy of :

Weichert, Realtors

455 Route 9 South -  Manalapan, NJ  07726

917-723-5645 - cell

732-536-4400, ext 199 - office  

www.AmberLovesRealEstate.com

"Your Reliable Resource For Real Estate & More"

FEAR NOT FIRST-TIME HOME BUYERS!

Below are some great "Fear vs. Fact" golden nuggets that should put your mind at ease. Enjoy!

Stay motivated,

Amber

www.AmberLovesRealEstate.com

Here are 10 of things I love most about central New Jersey (and western Monmouth County in particular)...

1. Wonderful homes with reasonable taxes, nice lot sizes and good prices

2. Close proximity to the shore and beaches       

 3. Solid hospitals like CentraState   

4. Great schools!

 5. Lord & Taylor, Wegmans grocery store, TJ Maxx and PF Changs all within 15 minutes of each other :)

6. Delicious Orchards in Colts Neck (especially their pecan pie around Thanksgiving)

7. Easy access to all the major roadways

 8. Less than 30 mins to Six Flags

9. Famous residents who still own homes here and make us proud! John Bon Jovi, "The Boss" and Queen Latifah too.

10. Less than 60 mins to NYC's Times Square

So what are 10 of your favorite things about central NJ?

Stay motivated,

Amber