Real Estate News, Tips and Articles - 2009
Serving the needs of the Upper Valley Real Estate Market
Here at Coldwell Banker - Redpath & Co., we feel it is our responsibility to keep you
abreast of the most recent Upper Valley Market News, Local market statistics regarding the
Upper Valley of both New Hampshire and Vermont, articles designed to help you in your buying
or selling process, and News relating to Coldwell Banker - Redpath.
You to Those Who Participated in Our 17th Annual Toys For Tots Reception. This year, in both
of the Redpath offices in Hanover & Quechee, we sponsored our annual Toys for Tots drive. We
also celebrated our 2nd Annual Angel Tree. It was a big success as our clients, friends and
coworkers children decorated adopted Angels and fulfilled an Upper Valley child’s wish. The
Angel Tree was then donated to a needy family in the Upper Valley.
April 13, 2009
2008 Awards, Coldwell Banker - Redpath & Co.
Recipients of awards at Annual International Business Conference in San Antonio, Texas.
Find out about the prestigious achievements of your local agents at
Coldwell Banker - Redpath. The Shelley Gilbert Team and Sally Rutter Group achieve the # 1
and # 2 ranking of all other Coldwell Banker teams in the State of NH for Adjusted Gross
Commision income. Susan Green was ranked #1 top sales agent in AGC for the State of New
Hampshire. Coldwell Banker - Redpath & Co. was ranked as the # 1 Coldwell Banker
company in the State of New Hampshire, the Hanover office was ranked # 1 office in the
North Region of all other Coldwell Banker offices with 21 - 30 agents.
Coldwell Banker North Region
Upper Valley VT & NH Real Estate Newsletter
HOME BUYER TAX CREDIT EXTENDED AND EXPANDED
New Legislation Extends the Federal Tax Credit for First-Time Home
Buyers and Expands the Incentive to Current Homeowners
For many Americans, home ownership is a key step towards achieving
the American Dream. It may seem like a challenging time to enter the market; however, recently
passed legislation that extends and expands the home buyer tax credit can give potential and existing
homeowners just the economic break they are looking for. This is based on information available
as of November 2009 and is not meant to be tax or legal advice. As with any tax law change,
consumers should check with a tax advisor regarding availability, eligibility and possible timing of
any tax credit.
On November 6, 2009, President Obama signed “The Worker, Homeownership, and Business Assistance
Act of 2009,” bringing that dream one step closer to reality.
To help consumers who are considering purchasing a primary residence, Coldwell Banker-Redpath & Co.
has summarized the details of this new legislation and what it means for those thinking about entering
- Eligibility: The tax credit is now available for first-time home buyers and select
homeowners. A first-time home buyer is defined as an individual who has not owned a principal
residence during the three year period prior to the purchase. For married taxpayers, the law
tests the homeownership history of both the home buyer and his/her spouse. For example, if you have
not owned a home in the past three years but your spouse has owned a principal residence, neither you
nor your spouse qualifies for the first-time home buyer tax credit. However, consumers should note
that ownership of a vacation home or rental property not used as a principal residence does NOT
disqualify a buyer as a first-time home buyer.
A qualified homeowner is defined as someone who has owned and resided in a home for at least five
consecutive years within the last eight.
- The maximum credit amount for first-time home buyers is $8,000; the maximum credit amount for
current homeowners is $6,500. The federal tax credit amounts to 10 percent of the cost of the
home, up to a maximum credit of $8,000 for first-time homebuyers and $6,500 for current homeowners.
Under the new legislation, a tax credit may only be awarded on homes purchased for $800,000 or less.
- e.g., If a home costs $60,000, the allowable credit for both a first-time homebuyer and a current
homeowner would be $6,000. If a home costs between $80,000 and $800,000, then the allowable credit
for a first-time homebuyer would be $8,000 and for a current homeowner, $6,500.
- Single taxpayers with incomes up to $125,000 and married couples with a joint income up to $225,000
qualify for the full tax credit. Individuals whose Form 1040 filing status is “single”
are eligible for the tax credit if their income is no more than $125,000. Individuals who file a joint
return are eligible if they have no more than $225,000 in income.
Single taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000
and $245,000 are eligible to receive a partial credit. Individuals with incomes greater than $145,000
(single) and $245,000 (joint return) are not eligible for this tax credit at all.
- The credit is available for homes purchased on or after November 7, 2009 and before May 1, 2010.
The federal income credit can be claimed on one’s individual or joint tax return for the purchase
of any single-family home (newly-constructed or resale, single-family detached, townhomes or
condominiums) between the dates of November 7, 2009 and April 30, 2010. Home purchases subject to a
binding sales contract signed before May 1, 2010 will also qualify for the tax credit provided closing
occurs prior to July 1, 2010.
- The tax credit is refundable. A refundable credit means that if the amount of income taxes a
home buyer owes is less than the credit amount he / she qualifies for, the government will send a
check for the difference. In essence, the credit is a dollar-for-dollar reduction in what taxpayers
owe for the calendar year following the year they close on their home.
The tax credit is a true credit. It does not have to be repaid unless the homeowner sells or stops using the
home as their principal residence within three years after the purchase. In that case, the full credit amount
will be recouped on the sale.
- e.g., A first-time home buyer who qualifies for the full $8,000 tax credit and owes $5,000 in
federal income taxes would owe nothing to the IRS and receive a $3,000 payment from the government.
A current homeowner who qualifies for the full $6,500 tax credit and owes $5,000 would pay nothing
to the IRS and receive $1,500 back from the government. If the move-up buyer is due to get a $1,000
refund, he / she would get $7,500 ($1,000 plus the $6,500 move-up buyer tax credit).
For further understanding of how the extended tax credit differs from the previous version and how it can
benefit first-time homebuyers and select homeowners, The National Association of Realtors®
has prepared a
comparison chart and
“ basics” guide
for your reference. Additional information can also be found on