I just love every time a new “Best Places to Live” report is published, Boise scores high marks every time. Here is the lastest report - Click Here.

Also, last week Moody’s named us to be one of the first five states to come out of the recession, great news!

Our local real estate market has seen our sales increase and prices start to level, first step to recovery.

Right now is an awesome time to buy a home, here are just a few reasons:

1. Prices are low

2. Interest rates are low (but starting to creep up)

3. First time homebuyer incentive of $8,000 (but you have to close by 12/01/09)

To start your home search visit www.IdahoHomeAgent.com or contact me Megan@IdahoHomeAgent.com, I look forward to working with you!

Awesomedeal!

$199,900- 3 bedroom- 2 bathroom- 1,714 square feet- 3 car garage

Quite cul-de-sac location. Beautiful, well maintained home remodeled last year, with new rustic maple hardwood floors, upgraded carpet, travertine kitchen and bathrooms backsplash, plus granite to be installed soon!

Large corner lot .24 acre with RV parking, poured concrete pad and large access gates.

Bright office with French doors, 2’ blinds throughout, wanes coating in kitchen and two bedrooms. Laundry room with tons of storage and built in sink. Large bonus room above garage with room to expand. Too much to list call to see this beautiful home today!

American Recovery and Reinvestment Act of 2009

$8000 First Time Home Buyer Tax Credit

1- Who is eligible to claim the tax credit?
First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.

2- What is the definition of a first-time home buyer?
The law defines “first-time home buyer” as a buyer 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, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. 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.

3- How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

4- Are there any income limits for claiming the tax credit?
The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

5- What is “modified adjusted gross income”?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine “adjusted gross income” or AGI. AGI is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.
To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

6- If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.

7- How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous “credit” was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.

8- How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.

9- What types of homes will qualify for the tax credit?
Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

10- I read that the tax credit is “refundable.” What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.
For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

11- I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.

12- Is a tax credit the same as a tax deduction?
No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.
A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.

13- I bought a home in 2008. Do I qualify for this credit?
No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit.

14- Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.
Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.
Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a downpayment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

15- If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.
Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.

16- For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

For more information or to get preapproved for a home loan contact:

                                 “Providing Dream Loans for Dream Homes”

                      546 E 52nd St Boise, Idaho

                          2 bedrooms - 2.5 bathrooms - 1356 square feet

Super cute condo in awesome, private location! Open floor plan that would be great for entertaining. Private patio with yard area. 2 bedrooms each with their own full bathroom. Custom side by side refrigerator and 47” high definition LCD tv included! Right next to green belt and the Boise river, Hawks Stadium, Le Bois park, Expo center, fairgrounds, close to downtown, shopping and dining. Short sale.

                                             $109,900

Visit www.IdahoHomeAgent.com for more information or to schedule an
appointment to see this great deal today!

  My past week I had a shadow, literally. It was Daniel Seddiqui from www.LivingtheMap.com . His objective is to travel all 50 states to work 50 different jobs in 50 weeks!  

 He is on a mission to explore various careers, environments, and cultures that America has to offer. After he graduated from the University of Southern California, he experienced uncertaintyregarding his career path. After failing 40+ interviews, he realized that “I had to find a position that motivated me to wake up every morning” So this last week he was trying out the real estate business with me at RE/MAX Elite Properties… 

  This week we refilled fliers, checked on vacant listings, dealt with a property management company and tenants, created a listing presentation, completed contracts and various other forms, previewed homes for a buyer, had a closing, handed over keys, worked with a buyer and showed homes, took pictures for a listing, a preview, and  my blog, worked on a blog and many other real estate duties. Real estate is not a 9-5 job, agents’ work a lot of nights, weekends and being flexible with your schedule is a must. The reason; most of my clients work 9-5 type jobs and they need me to be available when it works for them.        

We had several unique situations come up, letting Daniel see how adaptable a real estate agent is: One (of many) being at a closing the buyers were rushed in last minute after much chaos, their two small children had fallen asleep in the back of the car but we needed both of the parents to sign right then in order for everything to go through that night, they had already been staying in a hotel and we all wanted them in their new home, so… I went to their car with the sleeping little ones while the both signed, they woke up just as the closing finished. Everyone was happy!   

Open house

Showing homes

                                                           New homeowners receiving their keys

Filling out forms