Obama’s Stimulus Package Offers First Time Home Buyers Huge Benefits!

26. May 2011 · Write a comment · Categories: General Tax · Tags: , , , , , , , , ,

If you’ve been following the news, you are likely familiar with the federal government’s 0-900 billion stimulus package designed to boost the economy by creating new jobs, providing mortgage assistance, educational grants, and a suite of other incentives.  A key part of this package is the first time home buyer stimulus program aimed at reviving the ailing housing market by assisting first time home buyers and buyers who haven’t purchased a home in the last three years.  The incentives for those qualifying under this program are such that even those previously opposed to buying a home in this market are now changing their minds.

The main reason the first time home buyer stimulus package is so attractive is that it directly addresses the concerns that most people have about buying a new home.  The first concern that most people have is how they will come up with the down payment.  After all, you must have a considerable sum of money saved away in order to come up with a ten percent down payment.  Thanks to the stimulus package, however, the federal government will help first time buyers by paying a percentage of the down payment.  In other words, you do not have to come up with the full amount on your own.  The second worry is the dreaded interest that accompanies monthly mortgage payments.  There is good news here as well as the federal government has cut interest rates.  Thirdly, those qualifying as first time home buyers can apply for refundable tax credit of ten percent of the purchase price of their homes (up to ,000) if they enter into a binding agreement by April 30th of next year.  This is practically money in your pocket which you do not have to pay back unless you decide to sell or move out of your home within the first three years.

With all these benefits, no wonder more and more people are getting exciting about buying a new home in these tough economic times.  These incentives will not last forever so if you have a steady source of income and are serious about owning your own home, now is the time to act.

Indian Electric Cars Await Huge Markets In West

19. December 2010 · Write a comment · Categories: General Tax · Tags: , , , , , ,

The growing market for electric vehicles in the west has been a positive sign for Indian car manufacturers lately.

Bangalore based Reva Electric Car Company (RECC),and Tata Motors are finalizing plans to launch their products in Europe and U.S. The companies stand to avail benefits of subsidies offered for environmental causes in these countries. A high penalty is levied emissions and stringent vehicle emission test are mandatory.

In future Tata Motors plans to launch the electric version of Indica Vista and RECC plans to step up its exports to several other European and North American countries. Tata Indica Vista will be introduced in Norway this year. Reva Electric Car Company has been exporting its products to Europe since 2004 and now wants to explore U.S. market. So far RECC has exported 1,500 electric cars to Norway, Germany, Switzerland and UK.  RECC has had a limited success in European countries, but the new U.S. government’s pledge for greener cities has encouraged it to across the Atlantic.

Recently, President Obama pledged to have one million electric vehicles on American roads by 2015. “That is where the huge opportunity awaits us” said Mr. Chetan Maini, Deputy Chairman and CTO for Reva Electric Car Company.

However, Mr Maini admits it is an uphill task to reach American shores as stiff safety standards for all cars and strict entry regulations, make things difficult. Mr. Maini will be required to enhancing the safety standards on his cars before introducing it in U.S. market. That could also involve structural changes to the existing model too. RECC is also looking at various option to enter the market either through a joint venture or on its own.

On the brighter side, U.S. provides incentives through tax breaks to electric car manufacturers and subsidies of about $ 7,500 U.S.dollars to these car buyers. Tax breaks are given at two levels, the federal government and the state governments. They also provide support for research and development on such vehicles. The government has allocated $ 22 billion U.S.dollars for research and development on zero emission cars.

In UK, buyers of electric cars or hybrid vehicles could get tax rebate of £ 5,000. Throughout Europe the rebate was €5000 euros. To encourage the use of electric cars, the UK government exempts electric cars from £8 congestion tax levied on large cars entering central business districts. Parking charges are exempted for these cars in these areas. Local authorities have set up recharge plug points near busy areas. Mr Maini estimates the market size for electric cars at 200,000 units annually in United States.

The Indian auto major Tata Motors had purchased the Norwegian electric vehicle manufacturer Miljo Gi last year, as part of its next-generation technology plans. The new company entered into a joint venture with Electovaya from Canada, to source licensed lithium ion battery technology for electric car. Electovaya has developed batteries that can provide a driving range of 200 kms in one charge. They can be charged within an hour and travel on longer distances.

Tata also plans to create electric Indica models for Indian car market. For the European markets, the car body frame is manufactured in India and shipped to Europe. This measure not only helps reduce expenditure but also cheaper price tags. Indian car manufacturers have the benefit of cheaper manufacturing costs resulting in reduced prices for its final products. Reva G Wiz is sold at 40-50 percent reduced price compared to similar car produced in United Kingdom.

The electric car mobility is the next form transportation across the world. There have been some path breaking research in several countries, but more needs to be done. Electric cars are yet to show the flexibility that petrol/diesel cars provide. Indian car manufacturers are making great strides in electric car manufacturing and huge opportunities lie before them.

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Get Huge Tax Credit On Home Purchase – The American Dream!

21. November 2010 · Write a comment · Categories: General Tax · Tags: , , , , ,

Looking for a tax credit on home purchase? Owning a home means that your monthly housing expense is similar to a savings plan, while renters only support the savings plans of their landlords. Homes appreciate in value over time; just as your retirement accounts earn interest on monies BEFORE the taxes come out, so does real estate, and so will your home. Houses come in many shapes and varieties, as do people who rent them or those smarter people who own them. Owning the space you live in is the key to capturing this benefit. Whether you choose to buy a single family residence, or a multi family home that allows you to rent out part of the house, or a condo or a coop, getting out of the renter group and into the owner group makes financial sense.

You may think that this all sounds great, but you are wondering how the magical increase in your take home pay comes about with the home buy tax credit. Well, when you took your job your employer had you complete an IRS form which set the number of dependents upon which taxes would be withdrawn from your paycheck. Your account can assist you in calculating just how many extra dependents you can claim to receive the income tax savings benefit each week instead of waiting until the end of the year for a refund. By this simple act of completing a form with the assistance of your accountant, you can see the tax savings benefit of your new home purchase immediately, from the very first paycheck you receive after the closing.

There is another pleasant surprise you get when you buy a home…Read More

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First Time Buyer’s Huge (temporary) Tax Credit

17. December 2009 · Write a comment · Categories: General Tax · Tags: , , , , ,

You lucky bunch! First time buyers can get a tax credit for as much as ten per cent of a first home purchase (but it must be less than a 00 refund) . Yep, this is all part of the recently-passed and much publicized Housing and Economic Recovery Act of 2008 .

However, the fact that it is much publicized should mean that every young renting family should know about it – but according to a recent survey, at least 77% of renters do not.

This lack of knowledge could be costly because the tax credit is only designed to be a temporary boost and will not be there for long. This concession by the Government offers quite a substantial saving.

Think about it – ten per cent on a home that costs ,000 means that you will be allowed the maximum tax credit of ,500! Free tax credits! Substantial free tax credits!

However, just a reminder: if you buy a home of 0,000 on which the ten per cent is calculated to be ,000, you will still only be able to claim a tax credit of ,500 as this is the maximum allowable.

Alternatively, if you purchase a home of ,000 on which the ten per cent is calculated at ,000, you will only qualify to claim the tax credit on the maximum 10% of the purchase price i.e. the ,000.

New (brand new) housing sales are predicted to bottom out in the spring of 2009 and then they may start rising according to a comment made by Lawrence Yun, National Association of Realtors (NAR) Chief economist.

Now is an excellent time to get ‘your house in order’. Ensure that your credit rating is up to par, approach your bank or broker to arrange pre-approval to finance a mortgage for you, and check that you have enough savings to deposit a down payment as well as moving and closing costs.

Part of your pre-approval will point you to which price properties you will be able to consider. Of course, we always want the homes in the next price bracket up – but you can lose a home this way.

Be wise and be content with ‘starting’ on the bottom rung of the realty ladder; its not often that there is the chance to have a safety net put in place by the government!