Great news for home buyers! On July 30, 2008, Congress passed a housing bill for a temporary tax credit to first time home buyers who have not owned a principal residence in the last three years prior to purchase. The property must be a single family residence (including condos) that will be used as a principal residence and it must be located in the United States. To qualify buyers must purchase the property between April 9, 2008 and July 1, 2009, and they must have an adjusted gross income of no more than $75,000 ($150,000 on a joint return) to receive the full credit. The credit phases out above $95,000 ($170,000 on a joint return). The property cannot be financed by means of mortgage revenue bonds (i.e. financing programs offered by a state housing agency. In South Dakota, SDHDA loans). The credit is ten percent of the cost of the home not to exceed $7500. The tax credit is included in a purchaser’s income tax and therefore buyers do not have to apply for the credit prior to purchasing the property. It can be claimed on the IRS Form 1040 tax return. If the buyer’s income tax liability is $5000, they will receive a tax credit refund of $2500. This tax credit is structured as an interest free loan and includes a recapture clause. The recapture is 6.67 percent of the credit amount received spread over fifteen years. If a buyer receives the full $7500 they will have to pay back 6.67% ($500 per year) of their credit each year for fifteen years. The only catch is the government has not decided exactly how the credit will be repaid. In the event someone who has taken the tax credit decides to sell the home before the 15th year, the remaining balance is due. If a seller still owes $4000 at the time of sale and nets $20,000 of proceeds, the title company will remit $4000 of the proceeds to the IRS and the seller will receive the remaining $16,000. If a seller only makes $2000 off the sale and still owes $4000, the remaining $2000 owed will be forgiven.
October 09, 2008
July 07, 2008
The sky is the limit!
Well I finally did it! In April, Jeremy, Calen and myself went skydiving in Longmont, Colorado. What an experience!
On a bright, clear Saturday morning we each did a tandem jump. Now understand that heights scare the willys out of me (where did that saying come from?). It took about 6-7 minutes from the time you jumped from the plane to touch down on the ground. Looking out of the plane from 17,000 feet to the ground below was so cool. It was like looking at google earth on your computer screen, and almost looked fake. As we left the plane and fell free for about a minute, I started to giggle like a little school girl (another of those sayings). It was almost like a dream, we were falling at 130 miles per hour and then we pulled the chute. Do you have any idea how fast you can come to a stop in mid air? We then flew around with the parachute, like flying a glider. It was peaceful and quiet, floating above all the midget cars, people and planes on the ground. Our touch down landing was picture perfect (no I wasn't in control of anything) and for the next hour all I could do was laugh.
Many people have asked me if I will do it again - my answer is a definite YES! That is if Renaye will let me (I am such an obedient husband after all!).
