Hello all! I have officially made the leap. The goal of this blog will be to keep you up to date on what is happening in the real estate world, as it pertains to Durango, La Plata County, and beyond. If you have questions, or subject ideas, or anything of the sort, I would love to hear about them. Please let your friends, business associates, and anyone you come in contact with that might want to know about these matters. I will post links to helpful sites, highlight listings, talk about trends in the marketplace, and all types of things. The first link that I have concerns new tax forms and was brought to me by our office administrator, James Kreger:
Disclaimer: I am not an accountant… nor do I ever want to be. I am not a lawyer… nor do I ever want to be. Always consult an accountant or lawyer for info regarding tax advice or legal advice in general.
Below is an ecerp from an interesting WSJ article that I read. The highlights are that taxes implications are changing rapidly and can be quite a bit different than last year, to see the entire article you can go to: http://online.wsj.com/article/SB123552003020864433.html
Otherwise I have summed up some interesting points that Realtors should know:
“Home-buyer credit. This new credit for first-time home buyers could help many taxpayers, but it's complex. In general, you're considered a "first-time home buyer" if you buy your main home in the U.S. after April 8, 2008, and before Dec. 1, 2009, and if you (and your spouse, if you're married) didn't own any other main home during the three-year period ending on the date of purchase, according to the IRS's new Form 5405.The maximum amount of the credit depends on when you bought the home, says IRS spokesman Eric Smith. Generally, the maximum credit is $7,500, or $8,000 if you buy the home in 2009 (or half that amount if married filing separately), or 10% of the home's purchase price, whichever is smaller.For homes purchased in 2008, the credit operates "much like an interest-free loan," the IRS says. You generally have to repay it over a 15-year period. But for homes purchased this year, you don't have to repay the credit if the home remains your main home for 36 months after the purchase date, says the IRS's Mr. Smith. If you bought the home this year and qualify for the credit, you can claim it either on your 2008 return this year or on your 2009 return to be filed next year, he says.You can't claim it if your adjusted gross income, with certain modifications, is $95,000 or more, or $170,000 or more if you're married and filing jointly. You also can't claim it if you bought it from "a related person," such as your spouse or parents. For more details, see the new Form 5405 and the accompanying instructions. Mileage rates if you use your car for work, you have a choice on how to deduct the cost. You can use your actual expenses or rely on the IRS's optional standard mileage rates. The business mileage rate was 50.5 cents a mile for the first half of 2008 and 58.5 cents in the second half. This applies also to the use of vans, pickups or panel trucks.The IRS rates for medical and moving purposes were 19 cents for the first half of 2008 and 27 cents in the second half. For 2009, the IRS rates are 55 cents for business mileage and 24 cents for medical or moving purposes.There's a separate rate for using your vehicle for charitable purposes: 14 cents a mile for 2008 and 2009.
Otherwise I have summed up some interesting points that Realtors should know:
“Home-buyer credit. This new credit for first-time home buyers could help many taxpayers, but it's complex. In general, you're considered a "first-time home buyer" if you buy your main home in the U.S. after April 8, 2008, and before Dec. 1, 2009, and if you (and your spouse, if you're married) didn't own any other main home during the three-year period ending on the date of purchase, according to the IRS's new Form 5405.The maximum amount of the credit depends on when you bought the home, says IRS spokesman Eric Smith. Generally, the maximum credit is $7,500, or $8,000 if you buy the home in 2009 (or half that amount if married filing separately), or 10% of the home's purchase price, whichever is smaller.For homes purchased in 2008, the credit operates "much like an interest-free loan," the IRS says. You generally have to repay it over a 15-year period. But for homes purchased this year, you don't have to repay the credit if the home remains your main home for 36 months after the purchase date, says the IRS's Mr. Smith. If you bought the home this year and qualify for the credit, you can claim it either on your 2008 return this year or on your 2009 return to be filed next year, he says.You can't claim it if your adjusted gross income, with certain modifications, is $95,000 or more, or $170,000 or more if you're married and filing jointly. You also can't claim it if you bought it from "a related person," such as your spouse or parents. For more details, see the new Form 5405 and the accompanying instructions. Mileage rates if you use your car for work, you have a choice on how to deduct the cost. You can use your actual expenses or rely on the IRS's optional standard mileage rates. The business mileage rate was 50.5 cents a mile for the first half of 2008 and 58.5 cents in the second half. This applies also to the use of vans, pickups or panel trucks.The IRS rates for medical and moving purposes were 19 cents for the first half of 2008 and 27 cents in the second half. For 2009, the IRS rates are 55 cents for business mileage and 24 cents for medical or moving purposes.There's a separate rate for using your vehicle for charitable purposes: 14 cents a mile for 2008 and 2009.
So, there you have it. Let me know what you think and what you would like to see! Remember it is a good time to buy or sell, it is just a little more challenging.
Sweet blog Jerome - Danial Ciluffo
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