Long Beach Real Estate-Long Beach Condos

Long Beach Real Estate - Tax Credit for New Insulated Garage Doors

 

 

Long Beach home owners may benefit from stimulus legislation signed by President Obama on Februrary 17, 2009.  If you installed or plan to install a new 'insulated' garage door between Jan 1, 2009 and Dec 31, 2010 you can qualify.  Garage doors installed in 2008 do not qualify.  The maximum tax credit that a taxpayer may claim from all qualifying improvements combined is 30% of the cost of each insulated garage door and $1500 over the lifetime of the tax credit periods (2009 and 2010).

Not only will you improve the curb appeal of your Long Beach homes you can reduce your tax bill by up to $1,500 and reduce your energy bills. 

 

HOW TO IDENTIFY AN ELIGIBLE GARAGE DOOR

To be eligible for the tax credit, the purchased garage door must meet all of the following criteria:

• The door must be an insulated residential garage door.


• It must be installed on an insulated garage.


• The door must have a U-factor equal to or less than 0.30, even if the door contains glazing.


• If the door contains windows (glazing), the door must offer a Solar Heat Gain Coefficient (SHGC) equal to or less than 0.30.


• The door perimeter must have a means to control air infiltration.


• The door must be expected to remain in service for at least five years.


• The garage must be part of the taxpayer's principal U.S. residence.


• Dealers should provide homeowners with a Manufacturer's Certification statement and a breakdown of the material and labor costs.

 

The tax credit is applicable toward the materials, installation costs do not qualify for this tax credit. 

 

More information on garage doors can be found through the Door and Access Systems Manufacturers Association, further information on the tax credit can be found here. 

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When you are in the market to buy condos in Long Beach California (or anywhere else) it is very important that you know what questions to ask in order to decide if you are making a safe and a smart choice.  It is a smart condo buyer who knows where the pitfalls are and how to avoid them.  Learning as much as possible about how the HOA is managed, and how that will affect you as a part owner in the community, is your smartest decision. 

If you are an FHA buyer, as first time buyers often are, it is important to find out if the condominium complex is FHA approved - prior to writing your contract.  If you provide your lender with the name and address of the complex they can check this out for you.  Your lender will also need to know what the owner occupancy rate is in the complex, this can generally be obtained from the management company.  If the rate is below 50% the complex will not be eligible for FHA financing, even if it had been in the past.  Spot approvals can sometimes be obtained for non-FHA approved condominium complexes, if all criteria is met.  Spot approvals are not guaranteed and can become a lengthy process, sometimes taking 30 to 60 days. Spot approvals will be discontinued on November 1, 2009.  Condo Complexes can still apply for FHA acceptance, if they meet the criteria. 

Most condominium buyers want to know what the pet restrictions are in the building and if they can install washer/dryer hookups in condos that do not already provide these.  This information is usually covered in the Associations Rules and Regulations.  It should be fairly easy to obtain a copy of this either from an HOA member or the management company.  Your agent should be able to obtain the phone numbers of the management company and a couple of HOA board members.  You may need these numbers to continue your investigation into the solvency of the HOA. 

Once your offer is accepted you will receive a copy of the HOA documents.  These should contain the CC&R's, financials, budget and 12 months of minutes per paragraph 6B of your CAR (California Association of Realtors®) purchase contract.  It is not unusual for these to not arrive on a timely basis, these should be pursued, they are a contingency of your purchase and are very important.  Once received these documents should be reviewed closely, they tell the story of the complex, past, present and future. 

 

Paragraph 6B of your CAR purchase contract provides instruction to the seller to disclose to the buyer as follows:

1. Copies of documents required by law.
2. Disclosure of any pending or anticipated claim or litigation by or against the HOA.
3. A statement containing the location and number of designated parking and storage spaces.
4. Copies of the most recent 12 months of HOA minutes for regular and special meetings.
5. The names and contact information of all HOA's governing the Property (collectively "CI Disclosures). Seller shall itemize and deliver to the buyer all CI Disclosure received from the HOA and any CI Disclosures in Seller's possession.  Buyers approval of CI Disclosures is a contingency of this agreement as specified in paragraph 14B(3). 

 

A couple of the important items you will be asking about, and checking the HOA documents for, are any recent, pending, current or proposed assessments or increases in HOA monthly assessments.  Reading the last 12 months of minutes (required per the terms of the purchase contract, paragraph 6B) will reveal any discussions at board meetings regarding these and other important items.  If any of these items exist they should also be disclosed by the seller on the TDS (Transfer Disclosure Statement) during the disclosure term of your purchase contract.  We often ask for 24 months of minutes to get more history on the management of the HOA.  These minutes are a wealth of information and should be read very closely, they reveal much of what you need to know to formulate your decision to proceed with your condo purchase. 

 

 

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Who is Negotiating YOUR Long Beach Home Purchase or Sale?

 

Do you know who is negotiating the purchase or sale of your Long Beach Homes?  The real power in your Long Beach Realtors ability to negotiate a contract on your behalf lies in their command of the contracts they are wielding.  The standard form contracts that we use were written by attorneys for the California Association of Realtors (CAR).  Each and every paragraph of these contracts was developed to protect the consumer; the buyer and the seller in all Long Beach Real Estate transactions.

Knowing how to bend the contract toward a buyer's or a sellers best interest is an art, in my opinion.  Contracts have little boxes and small seemingly insignificant paragraphs in them which are often glossed over as meaningless.  There is nothing meaningless in any of the CAR contracts. Read More>>>

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Have there been any recent major repairs or upgrades? 

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How to Buy Bank Owned Homes

A little Friday Fun

 

 

While this movie is greatly exaggerated sadly much of the content has a serious element of truth to it. 

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Time is running out to take advantage of the $8,000 first time buyers tax credit.  In order to claim the credit you will have to close escrow by midnight November 30, 2009. With many escrows running over 30 days this means that you will have to locate the property fairly quickly, have your offer accepted and close escrow in time to qualify. 

 

Who is qualified to claim the tax credit?

 

First time buyers purchasing between 1/1/2009 and before 12/1/2009. 

First time home buyer defined:

 

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 home ownership history of both the home buyer and his/her spouse.

 

How is the amount of the tax credit determined?

 

The tax credit is equal to 10 percent of the homes purchase price up to a maximum of $8,000.

What are the income limits for claiming the tax credit?

 

The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

 

What types of homes will qualify for the tax credit?

 

Any home that will be used as a principal residence will qualify for the credit.

It is important to note that you cannot purchase a home from your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse.

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.

Is a tax credit the same as a tax deduction?

 

No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.

I bought a home in 2008. Do I qualify for this credit?

 

No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit. Please consult with your tax advisor for more information.

Is there any way for a home buyer to access the money allocatable to the credit sooner than waiting to file their 2009 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 buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the down payment.

The Secretary of Housing and Urban Development has announced that HUD will allow "monetization" of the tax credit. What does that mean?

 

It means that HUD will allow buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 income taxes to receive a refund. These funds may be used for certain down payment and closing cost expenses.

Under the guidelines announced by HUD, non-profits and FHA-approved lenders will be allowed to give home buyers short-term loans of up to $8,000.

If Im 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.

Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.

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.

 

 

 

 

This is a brief overview of the details related to the Federal Housing Tax Credit.  Further details can be found here. There are a lot of details related to applying this tax credit.  The information on this article should not be construed as legal or financial advice, it is for general information purposes only, we strongly advise consulting your tax advisor prior to making any decisions. . 

If you are thinking about buying a Long Beach home, a Long Beach condo or a townhouse in Long Beach please give us a call for a comprehensive overview of the real estate market in Long Beach and for a free consultation (562) 212-5420.

 

 

 

Important Long Beach Home Buyer Tips

• Don't Make Any Major Purchases
• Things to Avoid Before Purchasing a Long Beach Home
• Changing Jobs Affects Your Ability to Purchase a Long Beach Home
• Long Beach Homes - Issues for 1st Time Buyers
• Buying Fixer Upper Homes in Long Beach
• Long Beach Home Owners Can Deduct PMI

This important article highlights issues that many first time home buyers do not consider, that being the remaining life of the existing systems currently in the home and the cost of future replacement:

• Buying Fixer Upper Homes in Long Beach

 

 

 

Laurie Manny Long Beach Realtor (562) 212-5420
Main Street Realtors Belmont Heights 244 Redondo Avenue Long Beach California 90803
Long Beach Real Estate Blog Long Beach Real Estate Website

 

 

http://www.longbeachrealestatehome.com/009CB6

How exciting buying a new home!  Until the reality of actually moving occurs.  We all hate moving!

Most first time buyers are working harder, longer hours and are juggling their schedules to find time to look for their new home.  When they actually purchase finding the time to pack and move often becomes problematic.

When I moved across the country some 24 years ago I had to really think about what I was moving.  We all have collections of 'stuff' dating back to our childhood which we do not want to part with.  We just cart it from attic to attic.  At some point some of this 'stuff' has go to go. Most of our 'stuff' lands in closets, attics and garages taking up space and collecting dust. 

Take time before your move to purge.  Go through all of your 'stuff' and get real.  Do you need this?  Will you ever use it again?  Is it worth moving this item?  You will be surprised at how much 'stuff' you can part with. 

Do you have clothing in your closet that you haven't worn in over a year? Do you really think you will wear it again?  No?  Donate it, somebody, somewhere needs it. 

When I first went through my closets I was only willing to let go of a little bit of my 'stuff'.  I spent 6 weekends going through the same closets, each week I would let go of a little more.  Initially it was really hard to let go of many of my belongings, but as the weeks moved along it became easier and easier.  The bonus was a great feeling of 'lightening up'. 

 

Don't start to box up until you have purged, you will pack and move a lot less stuff.  You will be happy you did!

 

Important Long Beach Home Buyer Tips

• Don't Make Any Major Purchases
• Things to Avoid Before Purchasing a Long Beach Home
• Changing Jobs Affects Your Ability to Purchase a Long Beach Home
• Long Beach Homes - Issues for 1st Time Buyers
• Buying Fixer Upper Homes in Long Beach
• Long Beach Home Owners Can Deduct PMI

This important article highlights issues that many first time home buyers do not consider, that being the remaining life of the existing systems currently in the home and the cost of future replacement:

• Buying Fixer Upper Homes in Long Beach

Other articles that may interest you:

$8000 Tax Credit for Long Beach First Time Home Buyers - Long Beach Real Estate

 

 

Laurie Manny Long Beach Realtor (562) 212-5420
Main Street Realtors Belmont Heights 244 Redondo Avenue Long Beach California 90803
Long Beach Real Estate Blog Long Beach Real Estate Website

 

 

 

 

http://www.longbeachrealestatehome.com/009E71