By Les Christie, staff writer
September 9, 2010: 2:40 PM ET
NEW YORK (CNNMoney.com) -- Nearly half of all Americans who claimed the first-time homebuyer tax credit on their 2009 tax returns will have to repay the government.
According to a report from the Inspector General for Tax Administration, released to the public Thursday, about 950,000 of the nearly 1.8 million Americans who claimed the tax credit on their 2009 tax returns will have to return the money.
The confusion comes because homebuyers were eligible for two different credits, depending on when their homes were purchased.
Those who bought properties during 2008 were to deduct, dollar for dollar, up to 10% of the home's purchase price or $7,500, whichever was less. The catch: The money was a no-interest loan that had to be repaid within 15 years.
Had they waited to buy until 2009, they could have gotten a much sweeter deal. Congress extended the credit and made it a refund rather than a loan.
Now, the IRS is developing a strategy for separating the 2009 taxpayers who are required to repay the credit from those who are not.
A review by the Inspector General earlier this year found that the IRS could not easily distinguish between home purchases made in 2008 and 2009. That heightened concerns that some claims could be erroneous or even fraudulent, that buyers could, for example, claim their purchase came later than it actually occurred.
Thursday's release reported that 73,000 claims, more than 4% of the 1.8 million homebuyers who received the credit, had incorrect purchase dates recorded by the IRS.
Some of the inaccuracies counted against the taxpayers, Nearly 60,000 were listed as purchasing in 2008 (meaning they had to repay the credit) or had no purchase dates at all, rather than their correct 2009 purchase dates, which would free them of the obligation to pay it back.
It is also taking a look at all those deceased taxpayers who received credits.
The inspector general reported that 1,326 single people listed as dead by the Social Security Administration claimed more than $10 million in credits. The IRS threw out 528 of those 1,326 claims, saving $4 million.
View original article: http://money.cnn.com/2010/09/09/real_estate/who_repays_tax_credit/index.htm
Blogger Matthew Allan is a specialist in Savannah Real Estate, focusing on Savannah's downtown historic districts, including the Landmark Historic District, Victorian Historic District, Thomas Square Historic District, Starland Historic District, Baldwin Park, and Ardsley Park Historic District.
Friday, September 10, 2010
Thursday, September 9, 2010
Small Spaces and Teeny-Tiny Homes All Under 400 Sq. Feet!
Remember the "Death of the McMansion" blog from a few weeks ago? Now here's how to go smaller. Check out this article and slide show from Re-Nest.com with great ideas for making small spaces work. http://www.re-nest.com/re-nest/small-spaces/small-spaces-and-teenytiny-homes-all-under-400-sq-feet-roundup-104433
Wednesday, September 8, 2010
Run your home on an iPad
The expanded energy tax credit gives homeowners a break on green improvements done by the end of 2010. Here are 8 ways to spend your green.
Friday, September 3, 2010
Long Island Deal of the Week: Half of a House
A complicated deal, to say the least. This reminds me of the story of Jeanne Calment, France's oldest woman, who, when she was 90 years old, sold her apartment to a lawyer who agreed to pay 2500 francs per month until her death, allowing her to remain in the apartment. 21 years later, the lawyer died at age 77. 22 years later, Calment died at age 122! So sometimes these deals backfire.
A complicated bankruptcy means half of a Long Island house will be auctioned off-and the 81-year-old widow living there is part of the deal, the New York Post reports.
For decades, Joan Fleming has lived alone in a modest Bay Shore ranch home. She reportedly transferred the title of the Lombardy Boulevard address to her two children, but things went awry after son Michael, 49, declared bankruptcy in April.
His share of the home is expected to be auctioned off to the highest bidder Oct. 7. Here’s the twist: Ms. Fleming can live in the house alone until her death.
And, if that’s not enough, sources tell the Post that any buyer of the son’s share can’t move in — even if Ms. Fleming dies — without striking a deal with his sister on payment of an outstanding $66,000 mortgage. “If they can’t reach an agreement on the mortgage, the buyer would have to litigate in order to sell the home,” the Post writes.
Ms. Fleming, whose house is assessed at about $300,000, did not return a request for comment.
Auctioneer Richard Maltz says he can’t get inside the home to see what will be on the block. While interest the site will likely be sold at a steep discount, this is a deal for sophisticated investors, he tells Developments.
“Basically it’s not going to produce any return on investment until the life tenant, the woman living there, passes away,” he says. “It’s kind of a morbid thing to be betting on, but the longer she lives, the lower the rate of return on your investment.”
View original article here: http://blogs.wsj.com/developments/2010/08/12/long-island-deal-of-the-week-half-of-a-house/
Blogger Matthew Allan is a specialist in Savannah Real Estate, focusing on Savannah's downtown historic districts, including the Landmark Historic District, Victorian Historic District, Thomas Square Historic District, Starland Historic District, Baldwin Park, and Ardsley Park Historic District.
A complicated bankruptcy means half of a Long Island house will be auctioned off-and the 81-year-old widow living there is part of the deal, the New York Post reports.
For decades, Joan Fleming has lived alone in a modest Bay Shore ranch home. She reportedly transferred the title of the Lombardy Boulevard address to her two children, but things went awry after son Michael, 49, declared bankruptcy in April.
His share of the home is expected to be auctioned off to the highest bidder Oct. 7. Here’s the twist: Ms. Fleming can live in the house alone until her death.
And, if that’s not enough, sources tell the Post that any buyer of the son’s share can’t move in — even if Ms. Fleming dies — without striking a deal with his sister on payment of an outstanding $66,000 mortgage. “If they can’t reach an agreement on the mortgage, the buyer would have to litigate in order to sell the home,” the Post writes.
Ms. Fleming, whose house is assessed at about $300,000, did not return a request for comment.
Auctioneer Richard Maltz says he can’t get inside the home to see what will be on the block. While interest the site will likely be sold at a steep discount, this is a deal for sophisticated investors, he tells Developments.
“Basically it’s not going to produce any return on investment until the life tenant, the woman living there, passes away,” he says. “It’s kind of a morbid thing to be betting on, but the longer she lives, the lower the rate of return on your investment.”
View original article here: http://blogs.wsj.com/developments/2010/08/12/long-island-deal-of-the-week-half-of-a-house/
Blogger Matthew Allan is a specialist in Savannah Real Estate, focusing on Savannah's downtown historic districts, including the Landmark Historic District, Victorian Historic District, Thomas Square Historic District, Starland Historic District, Baldwin Park, and Ardsley Park Historic District.
Thursday, September 2, 2010
5 Simple Money-Saving Green Remodeling Ideas
I remember as a kid in the late 1970s, there were kiosks at the mall demonstrating low-flow shower nozzles. 30 years later and it's still an "option." When will this country get with the program? Anyway, onto the green remodeling tips.
It's a rough, uncertain time to be a homeowner. Plunging value, tightening credit and a soft economy mean fewer people have the funds to invest in major home-renovation projects. This trend is reflected in the slumps facing Home Depot, Lowe's and other home-improvement stores.
But there is some (green-tinged) light at the end of this dark tunnel; there are easy ways you can make quick fixes to your abode to boost its property value, without needing to refinance or inherit a fortune from a deceased uncle. Here are 5 steps that will save you money on those rising home bills, while improving your dwelling.
1. Dodge Drafts and Seal Air Leaks
Perhaps one of the easiest ways to save money around the house is to seal off drafts, which can reduce your energy bills 5 to 30 percent, according to the U.S. Department of Energy. With today's heating and cooling prices, that amounts to real money.
Check for window drafts by carefully holding an incense stick up to each frame and watch the smoke to see if there is a leak. (Be sure to remove all curtains first to avoid a fire.) Then use caulking or weather-stripping to seal the cracks. Make sure you cover any pipe outlets or cracks in the foundation. Also roll up an old towel, or buy or make a cute 'draft snake' to put over the crack in the bottom of doors (at the 'sill' or 'saddle').
You'll find that a less drafty house will also win applause from your residents and guests, as no one wants to feel like they're getting a cold shoulder.
2. Install a Programmable Thermostat
It may not be the most thrilling piece of electronics you could buy yourself, but a programmable thermostat will pay for itself in one season, and save you time and hassle. By maintaining more constant heating and cooling levels, and always 'remembering' to turn down the heat at night, the average family will save $150 a year, according to the EPA.
That's impressive, considering that programmable thermostats can be picked up from major manufacturers for as little as $50. They don't contain mercury like the olden days, and are available at most home-improvement and hardware stores.
Installing one is usually only a matter of connecting up a few wires in the back once you remove your old one (shut off the power to the area). Generally anyone can do it with a screwdriver and the instructions. But if you have any doubt, it's a quick fix for an electrician or handyman.
3. Fix Those Water Leaks
A dripping faucet or pipe joint is more than just an auditory annoyance. Besides driving you crazy, it can really add up to substantial water waste. One faulty faucet wastes 3 gallons of water per day, reports the U.S. Geological Survey.
Sometimes a leak is just a matter of a quick tighten, which almost anyone can do with pliers or a pipe wrench. Other times you get befuddled, or have a leak that is too hard to get to. In those cases it is worth calling a plumber, because not only will you see lower water bills over time, but you decrease the risk of mold, which is a serious threat both to home value and indoor air quality.
It may be a cliché, but every drop does add up.
4. Install Low-Flow Showerheads and Toilets
You'd probably rather not spend much time thinking about toilets, but it's a fact that most older models waste large amounts of water. In fact, more than 30 percent of indoor residential water use is flushed down the porcelain throne.
Decades ago, toilets used 5 gallons per flush, but readily available low-flow models use less than a gallon, and work great. American Standard, Toto and Kohler are leaders in the field.
Also save water and money, and still have ample water pressure, with a low-flow showerhead, which can slash bathing-water consumption 50 to 70 percent. The devices are simple to install and start at around $8. Many styles and features are available, including flow-adjusting dials and a pause button.
5. Buy Energy Star Appliances
Energy Star was designed by the EPA to take the guesswork out of appliance buying. Look for the blue-and-white label, which means the item is at least 10 to 50 percent more efficient than standard models (depending on the class of product). That means lower energy bills and less pollution, like you'll find with this Asko 'hidden' dishwasher.
More than 18,000 products in 35 different categories are covered in the Energy Star program, and most major manufacturers participate. Energy Star is a fixture in the showrooms of most retailers coast to coast.
A home fully equipped with Energy Star products will use about 30 percent less energy than a typical house, saving $600 a year. But remember, you don't have to rush out and replace every whiz-bang you own tomorrow. Go to energystar.gov to see qualified products and learn more.
View original article here: http://www.thedailygreen.com/green-homes/latest/5-simple-green-remodeling-ideas-460205
Blogger Matthew Allan is a specialist in Savannah Real Estate, focusing on Savannah's downtown historic districts, including the Landmark Historic District, Victorian Historic District, Thomas Square Historic District, Starland Historic District, Baldwin Park, and Ardsley Park Historic District.
It's a rough, uncertain time to be a homeowner. Plunging value, tightening credit and a soft economy mean fewer people have the funds to invest in major home-renovation projects. This trend is reflected in the slumps facing Home Depot, Lowe's and other home-improvement stores.
But there is some (green-tinged) light at the end of this dark tunnel; there are easy ways you can make quick fixes to your abode to boost its property value, without needing to refinance or inherit a fortune from a deceased uncle. Here are 5 steps that will save you money on those rising home bills, while improving your dwelling.
1. Dodge Drafts and Seal Air Leaks
Perhaps one of the easiest ways to save money around the house is to seal off drafts, which can reduce your energy bills 5 to 30 percent, according to the U.S. Department of Energy. With today's heating and cooling prices, that amounts to real money.
Check for window drafts by carefully holding an incense stick up to each frame and watch the smoke to see if there is a leak. (Be sure to remove all curtains first to avoid a fire.) Then use caulking or weather-stripping to seal the cracks. Make sure you cover any pipe outlets or cracks in the foundation. Also roll up an old towel, or buy or make a cute 'draft snake' to put over the crack in the bottom of doors (at the 'sill' or 'saddle').
You'll find that a less drafty house will also win applause from your residents and guests, as no one wants to feel like they're getting a cold shoulder.
2. Install a Programmable Thermostat
It may not be the most thrilling piece of electronics you could buy yourself, but a programmable thermostat will pay for itself in one season, and save you time and hassle. By maintaining more constant heating and cooling levels, and always 'remembering' to turn down the heat at night, the average family will save $150 a year, according to the EPA.
That's impressive, considering that programmable thermostats can be picked up from major manufacturers for as little as $50. They don't contain mercury like the olden days, and are available at most home-improvement and hardware stores.
Installing one is usually only a matter of connecting up a few wires in the back once you remove your old one (shut off the power to the area). Generally anyone can do it with a screwdriver and the instructions. But if you have any doubt, it's a quick fix for an electrician or handyman.
3. Fix Those Water Leaks
A dripping faucet or pipe joint is more than just an auditory annoyance. Besides driving you crazy, it can really add up to substantial water waste. One faulty faucet wastes 3 gallons of water per day, reports the U.S. Geological Survey.
Sometimes a leak is just a matter of a quick tighten, which almost anyone can do with pliers or a pipe wrench. Other times you get befuddled, or have a leak that is too hard to get to. In those cases it is worth calling a plumber, because not only will you see lower water bills over time, but you decrease the risk of mold, which is a serious threat both to home value and indoor air quality.
It may be a cliché, but every drop does add up.
4. Install Low-Flow Showerheads and Toilets
You'd probably rather not spend much time thinking about toilets, but it's a fact that most older models waste large amounts of water. In fact, more than 30 percent of indoor residential water use is flushed down the porcelain throne.
Decades ago, toilets used 5 gallons per flush, but readily available low-flow models use less than a gallon, and work great. American Standard, Toto and Kohler are leaders in the field.
Also save water and money, and still have ample water pressure, with a low-flow showerhead, which can slash bathing-water consumption 50 to 70 percent. The devices are simple to install and start at around $8. Many styles and features are available, including flow-adjusting dials and a pause button.
5. Buy Energy Star Appliances
Energy Star was designed by the EPA to take the guesswork out of appliance buying. Look for the blue-and-white label, which means the item is at least 10 to 50 percent more efficient than standard models (depending on the class of product). That means lower energy bills and less pollution, like you'll find with this Asko 'hidden' dishwasher.
More than 18,000 products in 35 different categories are covered in the Energy Star program, and most major manufacturers participate. Energy Star is a fixture in the showrooms of most retailers coast to coast.
A home fully equipped with Energy Star products will use about 30 percent less energy than a typical house, saving $600 a year. But remember, you don't have to rush out and replace every whiz-bang you own tomorrow. Go to energystar.gov to see qualified products and learn more.
View original article here: http://www.thedailygreen.com/green-homes/latest/5-simple-green-remodeling-ideas-460205
Blogger Matthew Allan is a specialist in Savannah Real Estate, focusing on Savannah's downtown historic districts, including the Landmark Historic District, Victorian Historic District, Thomas Square Historic District, Starland Historic District, Baldwin Park, and Ardsley Park Historic District.
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