Mar
15
Fishers Realtor discusses Property Taxes at 1% for Indiana
Posted by marchantteam under For Buyers, For Sellers, General Information, Tax
As a Fishers Realtor ® that works with relocation clients, it is always great to hear how low our property taxes are compared with other areas of the country. It is not always the same opinion when you ask those residents who live in the Indianapolis area!
On March 13th the House and the Senate passed the 1% property tax cap. The next step will be a referendum on writing those tax caps into the State Constitution. That referendum will be voted on by the people in November.
There are of course, many controversies that come with this kind of legislation. On the upside, a study by Ball State says the tax caps should boost Indiana’s economy by increasing a homeowner’s disposable income. If people “buy” more, the demand for those products increase and viola’ jobs will be created too.
On the down side, this cap does affect the budget and is probably part of the reason that $300 million was cut from the education budget. The fix on that appears to be House Bill 1376 that allows school districts to transfer money from their transportation and capital project funds to use for general operations and salaries. I, as an accountant in a previous life, worry about moving capital project dollars to the schools discretion. It is only a matter of time where buildings need money to stay viable and stealing from Peter to pay Paul may create a difficult situation later.
I have to ask the question…why isn’t anyone discussing the 1% increase in sales tax that happened on 4/1/08 that was suppose to solve 30% of the deficit. We now pay 7% in sales tax. That actually seemed relatively painless.
Okay, this is a Fishers Real Estate blog and I digress. The point is that for property tax bills in 2010 payable 2011, you should see it at 1% of assessed value after exemptions and please be sure you have your exemptions filed! There is a Homestead and a Mortgage that most people are eligible to file. There is of course, that wild card of “assessed value”. If you feel your value is incorrect, contact me at cindymarchant@comcast.net and I’ll get you the expert help you need.
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Cindy œin Indy Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775
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Oct
20
First Time Home Buyer $8,000 Credit Things to KNOW
Posted by marchantteam under Buyer Information, For Buyers, For Sellers, General Information, Tax
As we approach the end of a terrific first time buying season in Fishers Indiana, I wanted to share some information from the IRS on the first time buyers credit.
As you know, unless it is renewed, it will cease to exist on transactions closing after 11/30/09 which means you would have to be under contract by 10/30/09 at the latest. There are a few short weeks, so hopefully this information will be useful if you or someone you know is almost ready to pull the trigger.
I work with many clients looking for a home for sale in Fishers that will fit their needs. These are some of the questions I have heard and the answers.
Q. Can a taxpayer claim the first-time homebuyer credit if the purchase is pursuant to a seller financing arrangement (for example, a contract for deed, installment land sale contract, or long-term land contract), and the seller retains legal title to secure the taxpayer’s payment obligations?
A. If the taxpayer obtains the “benefits and burdens” of ownership of a residence in a seller financing arrangement, then the taxpayer can claim the credit even though the seller retains legal title. Factors that indicate that a taxpayer has the benefits and burdens of ownership include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.
Q. A taxpayer owned her principal residence. Several years ago, she decided to relocate to a rented apartment, but did not sell the former residence. Instead, she rented it out to tenants. Now the taxpayer plans to buy another house and make it her new principal residence. Does she qualify for the first-time homebuyer credit?
A. A taxpayer who owned rental property within the past three years is still eligible for the credit. The taxpayer cannot have owned and used a home as his or her principal residence within the last three years.
Q. Taxpayer A is a single first-time home buyer. Taxpayer B (parent) cosigns for A and does not qualify. Both names are on the mortgage. Can Taxpayer A claim the credit and, if so, how much?
A. Yes. Taxpayer B is not a first-time homebuyer and cannot claim any portion of the credit, but A may claim the entire credit ($7,500 for purchase in 2008; $8,000 for purchase in 2009), if the home was purchased as Taxpayer A’s primary residence.
There are various other first time home buyers tax credit questions so please read the full report. I offer first time home buying classes every month at our Fishers office, you can register at our Fishers Real Estate website. I include a home inspector, a lender and then myself to help people understand the process of buying a home. Hope to meet you soon!
Search homes for sale in Fishers by Neighborhood
Other Northside Blogs (Carmel, Noblesville, and Geist)
Cindy œin Indy Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775
One Response to “First Time Home Buyer $8,000 Credit Things to KNOW”
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Feb
25
First Time Homebuyer Tax Form 5405
Posted by marchantteam under For Buyers, General Information, Tax
The new form is out to file for your $8,000 first time home buyer credit. It can be filed with your 2008 taxes or your 2009 taxes. Form 5405 is what you need to have filled out.
I’ve discussed the first time home buyers credit in a previous post and also want to remind Fishers Real Estate residents and those in the surrounding Indianapolis area about our first time home buyers classes, the are held the last Saturday of ever month at 11:00. There is a home inspector, lender, interior designer and me to go through the process of buying your first home. We hope you will join us!
Cindy œin Indy Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775
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Feb
14
Stimulus Package for First Time Home Buyers
Posted by marchantteam under For Buyers, General Information, Tax, Tips and Random Thoughts
Buying your first home in Fishers or elsewhere in the country just got $500 better than the current credit in place, albeit $7,000 worse than the original proposed credit a week ago. The Economic Stimulus package that passed in the House (246 to 183) and last night in the Senate (60-38) will most likely be signed into law on Monday. The best synopsis of the difference between the previous $7,500 credit and the new $8,000 credit is provided by the National Association of Realtors (NAR).
The gist of the bill as it related to buying a home in 2009 appear to be:
- Tax Credit is $8,000
- If does not have to be repaid if you live in the home for three years
- Full credit limited to couples making less than $150,000; individuals making less than $75,000
- Only applies to first time homebuyers
- It applies to a home purchased from 1/1/09 through 11/30/09.
What does this mean for a Fishers Home Buyer? It means that rates are still low, inventory’s are still high, sellers are motivated, and it is a great time to buy. I personally think the best part of the revision is that you do not have to pay the $8,000 back as long as you stay in the home three years. What a great incentive to buy your first home!
The tax form can be filed with your 2008 or your 2009 taxes; the form you need is Form 5405
Cindy œin Indy Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775
3 Responses to “Stimulus Package for First Time Home Buyers”
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Cindy, wonderful blog! What a great time to buy a house! What a great time to be a 1st time home-buyer!
Blogs such as these prove that YOU are an asset to your indusrty. I am proud to work with you and your clients!!
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Lynne Coverdale says:
Cindy – great blog. You are on top of the information that pertains to the real estate market. You are a true professional.
Thank you for the information!
Lynne -
Great article Cindy. Two great things for first time buyers in Fishers: First the stimulus package. Second your informative Fishers real estate blog!
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Dec
17
Tax Tips for 2008
Posted by marchantteam under For Buyers, For Sellers, General Information, Tax
As your Fishers Real Estate Agent, I want to sell you houses and provide valuable information about the neighborhoods in Fishers, how to take care of your home, update you on Fishers events and give you a few tidbits along the way. This is a tidbit. As the end of December looms in the ofting; here are some tax tips you can use to keep more of your money!
- If you are a first time homebuyer, you can receive a $7,500 tax credit for 2009. You must buy the home by 6/30/09. Even if you buy the home in May and have already filed your taxes, you can file an amended return. You do have to pay this back through your taxes at $500 per year for the next 15 years. It is an interest free loan that has great timing right now.
- Give gifts to your children or grandchildren. Gifts up to $12,000 (or $24,000 if you are married and each giving a gift) per child need not be reported but the check must clear prior to 12/31/08.
- If you participate in a 401(k), 403(b) or 457 plan; you can take advantage of expanded limits on contributions. The general limit is $15,500 for 2008, but if you are over 50 you can contribute an additional $5,000.
- If you aren™t participating in any of the above plans, consider making a contribution. For an IRA; you have until 4/15/09 to make the contribution.
- Consider contributing to an HSA (Health Services Account) which will be tax deductible and the withdrawals if made for a medical reason are not taxable.
- Donating to a charity prior to 1/1/09 is deductible for 2008
- If you are a teacher and have spent up to $250.00 for classroom materials; this is a deduction that is available to you.
- You can œprepay your deductible interest and/or property taxes to accelerate your deductions.
- The home improvement credit does NOT exist in 2008. It expired in 2007, but under the Emergency Economic Stabilization Act, was reinstated but only for improvements implemented in 2009¦so wait on that one!
- If you live in Marion County; be aware of the property tax situation. When the bills come out; be sure your mortgage company pays it in 2008.
Of course, you should always check with a professional to ensure you are applying the tax codes correctly.
Cindy œin Indy Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775
4 Responses to “Tax Tips for 2008”
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Great Tips Cindy. My husband and I are seriously thinking about the Health Services account. And making some donations to Goodwill is def on my list this week.
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These are some great tips for Fisher IN Home owners, Cindy. It is nice to have them all together in once easy-to-reference place.
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Thank you Karen and Mariana, since I was an accountant in a previous life, just felt compelled to talk about taxes this time of year.
Hope all is well in the Frederick, MD Real Estate market as well as the Colorado Springs Real Estate market for both of you! -
Aha! You used to be an accountant – that explains your excellent advice for homeowners in Fishers Indianapolis. There are so many misconceptions about the $7500 tax credit alone, and it’s great to see this list of other tax tips!
Important details about the FTB tax credit for Fishers home buyers. You know the "devil’s in the details".