Townhouse in Montgomery Vilage - Gaithersburg

First Time Buyer Tax Credit - Time is Running Out

If you are in the market, call me now 240-417-6175

http://www.thebrannigangroup.com
http://www.branniganhomes.com

Hearthstone Village Townhouse style condo Close to Metro

$8,000 TAX CREDIT FOR FIRST-TIME BUYERS

First-time home buyers will get a tax credit windfall if they buy before December 2009. As part of the economic stimulus bill, first-time home buyers can claim a credit worth $8,000 (or 10% of the homes value, whichever is less) on their 2008 or 2009 taxes.

This credit is refundable, meaning that tax filers see a refund of the full $8,000 even if their total tax bill was less than that amount. Unlike the earlier version of the tax credit which really was a loan, this tax credit does not have to be paid back if the buyers live in the home for at least 3 years.

To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers must be first-time home buyers, meaning they cannot have owned a home in the past three years.

There also are income restrictions. To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. Higher income buyers may receive a partial credit up to a certain amount of income.

Taxpayers who already have completed their 2008 returns can file amended returns for 2008 in order to claim the credit.

Stimulus Bill

The current stimulus bill that will be signed by the President tomorrow allows for a Tax Credit of $8,000 for first time home buyers. This is a pure credit! If you have been considering buying a home, now is the time to act. Prices are down, interests rates are at historic lows. This is truly a great time to buy a home.

New Montgomery County Recordation Tax Law

New Montgomery County Recordation Tax Law
Effective March 1, 2008

Effective March 1, 2008, the recordation taxes for Montgomery County, Maryland will be increased to $10 per $1000 for consideration payable over $500,000.00. Consideration payable of $500,000.00 or less will continue to be taxed at the current rate of $6.90 per $1000.00. The tax calculation will continue to exempt the first $50,000.00 of the sales price from recordation tax if the property is to be owner occupied. The new Act applies to any transaction that occurs on or after March 1, 2008. The new Act, however, does not affect the existing State and Montgomery County transfer taxes. To avoid any confusion in advising or preparing net sheets for your clients, we are providing the following examples as to how the new Montgomery County recordation tax will be applied.

Consideration (i.e. Sales Price) of $600,000.00 for a Principal Residence:
First $50,000 of sales price is exempt from recordation tax
The next $450,000 of sales price is taxed at $6.90/$1000
The remaining $100,000 of sale price is taxed at $10/$1000
Total Recordation Tax: $4,105.00
Total County Transfer Tax (1%): $6,000.00
Total State Transfer Tax (.50%): $3,000.00

Consideration (i.e. Sales Price) of $600,000.00 but will NOT be a Principal Residence:
First $500,000 of sales price is taxed at $6.90/$1000
Next $100,000 of sales price is taxed at $10/$1000
Total Recordation Tax: $4,450.00
Total County Transfer Tax (1%): $6,000.00
Total State Transfer Tax (.50%): $3,000.00

Consideration (i.e. Sales Price) of $375,000.00 for a Principal Residence:
First $50,000 of sales price is exempt from recordation tax
Remaining $325,000 of sales price is taxed at $6.90/$1000
Total Recordation Tax: $2,242.50
Total County Transfer Tax (1%): $3,750.00
Total State Transfer Tax (.50%): $1,875.00

Consideration (i.e. Sales Price) of $375,000.00 but will NOT be a Principal Residence:
Full sales price of $375,000 is taxed at $6.90/$1000
Total Recordation Tax: $2,587.50
Total County Transfer Tax (1%): $3,750.00
Total State Transfer Tax (.50%): $1,875.00

The one state recession........

Last night I started watching the Republican Presidential debate. This debate was focused on the economy and as a real estate agent, I was interested. I turned the debate off after the first question. Both Fred Thompson and Mitt Romney responded to a question about the housing market by stating that the economy overall is in good shape and the housing market/crisis is not as bad as everyone says. In fact, they both stated that relative to the foreclosure crisis and it's affect on the economy, we are seeing a "one state recession". That state being Michigan where foreclosure rates are extremely high.

Here's the reality. Michigan's foreclosure rate of 1 filing for every 320 households ranked the third highest for July 2007. Detroit does rank the highest for metro areas with 1 filing for every 97 households. Nevada is actually the highest in the nation for July 2007 with a filing rate of 1 in every 199 households and Georgia ranked #2 with 1 filing for every 299 households.

Nationwide, foreclosures rates for July 2007 increased 9% from June 2007 and a whopping 93% increase from July 2006. The truth is that for July 2007, the foreclosure rate nationally was 1 filing for every 693 households.

Are they stupid or are they lying? I don't know. But I do know that they are WRONG. The housing market is a national problem. It is affecting consumer confidence and it's only a matter of time before this lack of consumer confidence begins to affect other areas of the economy. Wake up America! The first step to solving a problem is admitting there is a problem!


All of these statistics according to http://www.realtytrac.com/.
To view a list of foreclosures rates nationwide by state please visit: http://www.realtytrac.com/ContentManagement/Library.aspx?ChannelID=9&ItemID=3221