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.

Great News for First Time Home Buyers – Home Stimulus Package Now Expanded!

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

Has it been three years since you last purchased a home as your primary residence?  Are you now thinking about buying a new home but are worried about the perilous state of the housing market and the financial burdens of making a down payment and making your monthly mortgage payments?  If so, there is great news for you.  The federal government will help you pay a portion of your down payment so you don’t have to come up with the full 10 percent on your own.  To further sweeten the deal, interest rates have been slashed by a couple of percentage points.  And to top it all off, you can get a tax credit of ten percent of the purchase price of your home – that’s up to ,000 in your pocket!  

If you’ve been keeping up with the latest developments, the news just keeps getting better.  The deadline for entering into a contract for buying a home was extended until April 30th of next year.  (You actually have until June 30th of next year to close).  If you are a member of the armed services, Foreign Service, or Intelligence community serving overseas you get an extra year.  This means you have until April 30th, 2011 to enter into an agreement and until June 30th, 2011 to close.  The income limits for qualifying for the tax credit have also been increased for purchases made after November 6th, 2009.  This means more people will now qualify.  Are you picturing your dream home yet?

President Obama and the federal government want the housing market to get back on its feet so if you are seriously thinking about buying a new home, now could very well be the best time.  The incentives will not last forever so make sure plan accordingly, do all your research, and take action.  There are some caveats and restrictions that could impact your eligibility for the tax credit so make sure you familiarize yourself with those provisions.  If you are confident in your financial future, however, you really have nothing to lose and everything to gain by taking advantage of the first time home buyer stimulus package.

Stimulus Energy Incentives Passed In Congress

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

As the new US administration seek to steer a new direction as recession worsened, the American Recovery and Reinvestment Act of 2009 was passed into law which inclusively considered provisions for efficiency in energy use within.

Significantly, stimulus energy incentives allowed billion for our aging power grid to be upgraded to smart grid technologies. A total of .9 billion was allocated to renewable energy transmission and projects, .3 billion is given to individual states for their energy efficient programs and .5 billion was allocated to overhaul federally owned buildings.

Some future-oriented principles are contained within and 0 million stimulus energy incentives that were allocated to research in order to help in creating the Advanced Research Project Agency – Energy. Through collaboration with industries and the government, it is designed to promote research which are ‘high payoff, high risk’.

Since the act was introduced when investments were tight in the middle of recession, projects which are geared towards renewable energy are able to qualify for a loan instead of just tax credit. Previously, investors have no sufficient income to make companies qualify for the 30% tax credit, thus, making this privilege very important. The same goals can be achieved through availing of a loan at 30% of the project value.

Companies in the renewable energy industry will be able to benefit from the incentives in the provisions of the stimulus energy incentives and would have additional access to capitalization. Tax credits will be given as incentives to those who invest in solar installation projects and other energy saving facilities for government buildings, schools and military bases.

These tax credits will now be available through 2012 for wind power investments, and for programs which enable electricity to be generated from ocean power, geothermal, hydropower, biomass or landfill initiatives and are extended where they would have expired.

Over billion have been allocated to fund research and experiments through the ARRA Act in relation to funding experiments and research for carbon capture and storage projects, sequestration. The original content of this bill was adjusted during its passage through the House and the Senate. Loan guarantees intended for the nuclear industry and coal industry allocations were removed from the provisions. Meanwhile, energy-related infrastructure spending was retained largely as part of the stimulus energy incentives passed.

In finding ways to regulate business energy consumption through the cap and trade program, the Stimulus Energy Incentives Act may be joined in 2009 as a result of the American Clean Energy and Security Act (ACES). Overall government action is already aggressively pinning in the direction of addressing environmental problems caused by energy related emissions, climate change, and greenhouse gas emissions.

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First Time Home Buyer stimulus

22. April 2011 · Write a comment · Categories: General Tax · Tags: , , , ,

First Time Home buyer stimulus

In response to the sub prime crisis which has crippled the US as well as world economy, the federal government has come up with different responses that have been fairly successful in encouraging the home buyer to go ahead with his purchase. The biggest and best target that the government has in mind has been the first time home buyer, most of whom have been postponing their plans to purchase their dream home, due to recession and also expecting the markets to lower real estate rates.

Of the various programs introduced, the stimulus in the form of tax credits has been most promising in terms of result achieved. The tax stimulus has been aimed at making the home more affordable to the common man, considering the fact that most citizens always have dreamt of purchasing their own house. The latest version of the tax credit package, which is designed for the period of 209 has in it, different advantages to facilitate easier purchase.

To start with, the policy aims at giving tax credits to any first time home buyer, who purchases a home in the period starting from 1st January 2009 to 31st December 2009.  The upper limit for the tax credit is 00 and is calculated as ten percent of the value of the home purchased. This is a very useful advantage as this helps the citizen to save on his taxes, apart from using that amount to invest in other interest earning mechanisms. Another important reason that a person would want to use this policy is the fact that the interest rates have touched a bottom level and the government is making all efforts to keep the rates at that level for some time to come. The government is also assisting in down payments by either reducing the down payments required or by way of financial assistance. The criterion to be eligible as a first time home buyer is that the person should not have made any property purchases in the last three years.

The only catch as far utilizing this package is that the salary of the buyer should not exceed 000 for a single buyer or 0000 for a joint buyer. This is infact a good condition as such a step would help the government and real estate companies tap into the hitherto untouched middle class and upper middle class segment of the population.

Real estate has always been considered as a strong driver of the economy and hence all steps taken by the government to stabilize the real estate market and generate good returns shall, on the long run, translate into a better and strong economy.

Stimulus, Stimuli, Just Creates A Bigger Pie

17. April 2011 · Write a comment · Categories: General Tax · Tags: , , , ,

How The Federal Tax Credit Saves You Money

Great time of year for a homebuyers’ stimulus package! With spring coming (real estate hot season), and financial incentives to boot, this should be a pretty good season for the real estate industry. Homeowners who have cowered in fear over the current Recession can rest a little easier knowing that the end is in sight. While incentive plans only slow, rather than stop steep housing value declines and marginally improve consumer spending, they definitely prove that our governments have decided to do something about the mess we’re in.

Unfamiliar with what a “Stimulus Package” can do for you?

Well, first of all, it means the things you want will cost less. With tax incentives, like Obama’s ,000 Home Buyers Tax Credit, and Stephen Harper’s Home Renovation Tax Credit put the money back in your pocket when making big purchases for your home. By spending the money on buying or renovating your home, you’re essentially paying for it with pre-tax dollars.

If you’ve ever visited a good accountant, she’ll tell you that spending pre-tax dollars is even better than sliced bread! Pre-tax means that you spend the money that is normally taken by the government in your payroll deductions. It means that at the end of the year, your tax refund check will be much larger than usual if you choose to spend your hard earned money on home improvements (in Canada) or home purchases (in the U.S.).

What are other benefits?

Since you’re actually living in these hard times, it’s likely that you know someone who has been laid off recently. Not only does it harm their family, but layoffs as a whole negatively affect the standard of living for all citizens. By making large purchases, like buying a home, we create more jobs and more opportunities in the industries that have crumbled as a result of economic hardships.

The real estate and auto industries are what provide the backbone of our economy. With real estate values slumping and auto sales nearly disappearing, much of the cash generated from these industries no longer filters back into the public, thereby increasing the cost of living, and reducing the need for employees. By purchasing or renovating a home, you put the cash back into places that keep our economy going. So by remodeling your bathroom, you’re actually doing your part to move our economy out of this Recession.

The Bottom Line

Whether you read the news or not, you’ve noticed something’s not quite right lately. The doom and gloom is in the air and frankly we’re getting sick of it. Using tax incentives to encourage big purchases is our governments’ version of a life line. We only benefit from taking these incentives and profiting from the value they provide.

Ask yourself this, “Is your money really better off in the tax man’s hands?” Or could you see yourself finally improving the upstairs bathroom courtesy of the federal government?

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