Thousands of homes across the country are echoing with the sounds of repairs, thanks to the expanded federal spending for weatherization assistance for homeowners and increased tax credits for those who improve their energy efficiency.

Stimulus funding bolsters the U.S. Department of Energy’s Weatherization Assistance Program with $5 billion to be spent during the next one to three years.

To put weatherization within reach of more low-income homeowners, the government raised the programs eligibility limits – they had varied from state to state – to 200 percent of the poverty level. That’s income of $21,660 for an individual and $44,100 for a family of four (higher in Alaska dn Hawaii).

Priority is given to people over 60, people with disabilities and families with children. Final eligibility is determined at the local level.

Jewel Kreider

Yorba Linda Real Estate Insider

July marked the l3th month that sales topped the year-earlier total and with 3,128 houses and condo’s changing hands, it has marked the biggest month since March 2007 according to Data Quick.

Median sales price for the county is $420,000 for the month.  This is down 8.9 percent from a year ago and 35 percent below June 2007’s peak of $645,000.

Jewel Kreider.

Yorba Linda Real Estate Insider

IMPORTANTLY, THE FINE PRINT CONTAINS THE FOLLOWING FEATURES THAT COULD MAKE A BIG DIFFERENCE WITH YOUR FIRST TIME BUYERS!!

1. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
Yes. Qualified prospective home buyers who believe they are going to purchase 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 when they eventually buy within the time period allowed.

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. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

2. 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.

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.

3. 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 phase-out 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.

Be sure to discuss your plans with a qualified accountant before committing to a plan.

Paul Paterakis

Long Grove Real Estate Insider

Use this address when sending correspondence and parcels to inmates confined at this facility.

INMATE NAME & REGISTER NUMBER
FCI BUTNER MEDIUM I
FEDERAL CORRECTIONAL INSTITUTION
P.O. BOX 1000
BUTNER, NC  27509

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