IRS Press Release

Expanded Tax Break Available for 2009 First-Time Homebuyers

IR-2009-14, Feb. 25, 2009

WASHINGTON – The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.

Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.

“For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit, “ said IRS Commissioner Doug Shulman. “This important change gives qualifying homebuyers cash they do not have to pay back.”

The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit on IRS.gov. The revised form incorporates provisions from the American Recovery and Reinvestment Act of 2009. The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, income limitations, and repayment of the credit.

This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, $150,000 for joint filers.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.

The IRS also alerted taxpayers that the new law does not affect people who purchased a home after April 8, 2008, and on or before December 31, 2008. For these taxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains 10 percent of the purchase price, up to $7,500, or $3,750 for married individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year.

Urgent Notice: Revised NCAR Exclusive Right To Sell Listing Agreement, NEW NCAR Short Sale Addendum to Exclusive Right to Sell Listing Agreement, and NEW Short Sale Addendum to Offer to Purchase and Contract.

Attention: Please review and read very carefully the Revised NCAR Exclusive Right To Sell Listing Agreement (Revised January 2009). Because of the increasing number of short sales in North Carolina, NCAR has approved and released a “Short Sale Addendum” (Adopted January 2009) to the Exclusive Right to Sell Listing Agreement.  There is also a new “Short Sale Addendum” to the Offer to Purchase and Contract (Adopted January 2009).

NCAR’s Forms Use Policy allows permitted users a 60-day “grace period” to continue using an old version of a standard form following a modification of the form.  Therefore old versions of the updated forms may be used through the end of March. However, you should check with your broker-in-charge concerning your own firm’s policy on use of the new forms, in case your firm requires that you use them prior to the end of NCAR grace period.

Please read and review these new documents carefully.
If you have additional questions, please email Bill at bgallagher@superiorschoolnc.com.

If you wish to to take a “Short Sale” course, please view our schedule with upcoming dates for Art of the Short Sale.

Myth #1: Staging is Decorating…

Fact: Staging is NOT Decorating or Design! Decorating or Design is personalizing and Staging is De-Personalizing and preparing a house for the un-known Buyer. That is why it’s KEY that you hire someone with training specifically on how to prepare a house for sale.

The Accredited Staging Professional Designation™ (ASP™) is the ONLY nationally recognized professional designation for Home Staging. Make sure to hire someone with this professional designation when selecting a qualified Home Stager.

TIP: When the focus of the Staging becomes about things and not your house, then you are working with a decorator and not a trained Stager. An ASP Stager can use existing items in a house and their creativity to properly Stage a house for sale.

Myth 2: Staging Costs Too Much…

Fact: Staging is an investment in getting a house sold and the investment in Staging is always less than a price reduction. An ASP™ Stager has been trained to work with a Seller’s budget and time frame to properly Stage a house. We like to ask our clients, “Can you afford NOT to Stage?” When compared to other costs associated with the sale or purchase of a home, Staging is very reasonable. In most markets, a Staging report detailing what needs to be done to Stage the house for sale is less than the appraisal or Home Inspection reports.

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