Changes to Tax Credit

New Stimulus Plan Offers Changes to The Housing Credit. The main ones are listed below:

• The credit amount is increased from $7500 to $8000.
• The credit continues to apply only to first-time homebuyers.
• Changes are effective for purchases on or after Jan 1, 2009 and before Dec 1, 2009.
• 2009 purchasers can make an election to claim the credit on their 2008 tax return.
• The credit is refundable. The amount of the refund is computed as part of the 1040 tax return filing.
• The unpopular repayment feature of the 2008 version is eliminated for 2009 purchasers. Unfortunately, eligible 2008 purchasers will still be required to repay the credit.
• While the repayment is eliminated for 2009, any credit that is taken for 2009 will be recaptured and paid to the IRS from sales proceeds if the residence is sold within three years of the date of purchase.
• DC homebuyers are eligible for the $8000 credit (In 2008, DC homebuyers had a separate, nonrepayable $5000 tax credit available to them that had already been in effect for several years.)
• Purchasers who finance their 2009 purchases with funds from a state/local housing bond authority will be eligible for credit.

*Contact your tax advisor for your specific situation.

$7,500 Tax Credit not enough? How about $15,000?

The Senate is discussing a new tax credit that could replace the 10%/$7,500 no interest loan for first-time home buyers, scheduled to sunset on June 30, 2009. Instead, a 10%/$15,000 refundable tax credit, for all home buyers, could be instituted for single filers who make less than $75,000 or married couples who make less than $150,000. You would be able to split the refund for 2009/2010 tax years or take it retroactively, for 2008. Obviously, $15,000 is more than $7,500 but since the new credit will be a refundable one, you could actually receive less money if your tax liability is under $7,500. Please contact your tax advisor for additional information.

Get Organized To Sell Your Home

by

Barbara Myers

Increase your chances of selling your home quickly with this eight step solution:

1. Ask a friend to help you de-clutter. You're probably so used to your clutter that you don't see it anymore. Ask an objective friend to help you pack up anything cluttering your home.

2. Clear off countertops in the kitchen. Think model home sparseness. Display only a couple of decorative items or a plant. Hide the trash can in a cabinet. Clean off the refrigerator.

3. Remove all photographs. Buyers want to imagine living in your house. That's hard to do with a wall filled with Aunt Martha and Little Johnny.

4. Clean out your closets. Make them look spacious even if you have to pack most of your clothing and store it elsewhere.

5. Depersonalize your bathroom(s). No matter how cute your toothbrush holder is, seeing someone's personal items is a turnoff. Put them in a container and hide it under the sink.

6. Pack knicknacks. Buyers want to dream of their collections filling the rooms, not yours.

7. Rearrange furniture to open up the space. Remove most items from bookshelves to visually expand the space.

8. De-clutter your yard. Remove toys, empty flower pots, and anything that does not enhance your curb appeal.

Free "50 Ways to Manage Your Time" tips booklet. Visit www.ineedmoretime.com

Barbara Myers is a professional organizer, author and speaker. When planning your next event or needing your personal coach on taking control of your time by organizing your life. © 2009, Barbara Myers. All rights reserved. For information contact FrogPond at 800.704.FROG(3764) or email susie@FrogPond.com; http://www.FrogPond.com.