People often wonder how I came to be the type of person that doesn’t care what people think. Either that or they wonder why I feel the need to pretend like I don’t care what people think. For those who think the latter, I can assure you that it’s not an act but very much factual. For the rest, here’s my take on the topic.
Here are a few things I truly believe in my heart and live every day.
#1: I do not care what people think of me. The reason: They do not live my life. Just because someone has an opinion of you (good or bad), it does not make it a fact. Face facts. People are going to talk about you whether you like it or not. Your best friends and your family WILL talk about you behind your back. It’s how people relate to other people. Keep in mind that this is an opinion based on third party observation. You know in your heart if their words hold any merit.
#2: I do not get offended by criticism. The reason: I look at it this way: It’s possible that this person is trying to help. Especially if it’s someone close to you, they may be telling you something that you need to hear no matter how much it hurts. I absorb criticisms with an open mind and if I believe it’s something that I can use to improve myself, I work on it. Then there are people who are criticizing things about you that they do not like within themselves. Almost always when people speak badly about one another, it’s regarding something that they, themselves are insecure about.
#3 I’m not flattered by praises/awards. The reason: I do not measure my self-worth by my income, my successes or my failures. When someone praises me, I appreciate it. But I view it with the same mindset as noted in #1. That’s their opinion. I would never refuse an award because the people/organization put time/money into presenting it to me. But I don’t have a shrine to myself hanging in my home either. Awards do not make me the best. And lack of recognition doesn’t make me the worst .
#4 I have no interest in fashion. The reason: I dress how I feel like dressing. If I like it, I’m wearing it. End of story. If people like or don’t like it, that’s okay. It’s fine to have an opinion. But it won’t dictate how I dress.
#5 Don’t ask me if you don’t want to know. The reason: I don’t give false praises. When someone compliments you, I accept it by saying thank you. . I also don’t lie when I’m asked for my opinion. I will not feed into your need for approval.
#6 I stay open minded. The reason: I do not know where these people have been. I usually try to understand where they are coming from to understand their outlook or thought process. I realize that my thoughts and opinions are not the “be all, end all to the universe. I respect the beliefs of others while still holding true to my own.
#7 I don’t keep up with the Jones’. The reason: I am not materialistic. I am not jealous of things that other people have. Material items do not make you happy. Happiness comes from within. I will not buy something because everyone else has it. And I’m really not impressed with the price of one’s possessions.
# 8 I am not bitter towards others. The reason: This isn’t a competition. We are here on earth for our personal journey. You don’t know what it’s like to be someone else. While things may look perfect from your point of view, there is always more to the story. It doesn’t matter if someone has a nice house, good career, happy marriage, etc. Everyone has their cross to bear. I have enough time dealing with my own crosses to want to wish to be in someone else’s shoes and deal with theirs.
#9 I treat everyone the same. The reason: You never know who you are talking to. First impressions can be deceiving. Everyone deserves to be treated with friendliness and respect unless proven otherwise. We are all equals regardless of race, religion, social status, etc.
# 10 I live my life the way I want. The reason: I’m living my life while people are sitting around talking about it.
Sunday, July 5, 2009
Tuesday, June 30, 2009
Record Breaking Temps
In the Past Seven Days Records Have Been Tied or Broken at SeveralLocations in the Forecast Area. Records are Listed Below: New Record(2009) Old Record/year
Lake Charles
June 24 102 99/1937
June 25 102 99/1914
Beaumont
June 24102 97/1995
June 25 100(t)100/1902
June 28100 97/1969
June 29100 96/1969
Lafayette
June 24 102 99/1930
June 25 100(t)100/1930
June 28 99 98/1954
June 29 101 100/1930
Alexandria
June 23 102(t)102/1932
June 24 102 101/1930
June 28104 101/1932
New Iberia
June 23 100 97/1953
June 24 102 97/2005
June 25 101 97/2005
June 26 101 98/1951
June 27 97(t)97/1952
June 28 98 97/1950
June 29 100 97/1950
near Record High Temperatures will Persist Through Much of TheWeek. Additional Records May be Tied or Broken During this TimeFrame. Increased Rain Chances this Weekend Should Bring an End toThe Oppressive Heat.
Olivier/jones
Expires
7/1/09 4:15 PM
County/Area
Lafayette, LA (latitude: 30.2159, longitude: -92.0904)
Lake Charles
June 24 102 99/1937
June 25 102 99/1914
Beaumont
June 24102 97/1995
June 25 100(t)100/1902
June 28100 97/1969
June 29100 96/1969
Lafayette
June 24 102 99/1930
June 25 100(t)100/1930
June 28 99 98/1954
June 29 101 100/1930
Alexandria
June 23 102(t)102/1932
June 24 102 101/1930
June 28104 101/1932
New Iberia
June 23 100 97/1953
June 24 102 97/2005
June 25 101 97/2005
June 26 101 98/1951
June 27 97(t)97/1952
June 28 98 97/1950
June 29 100 97/1950
near Record High Temperatures will Persist Through Much of TheWeek. Additional Records May be Tied or Broken During this TimeFrame. Increased Rain Chances this Weekend Should Bring an End toThe Oppressive Heat.
Olivier/jones
Expires
7/1/09 4:15 PM
County/Area
Lafayette, LA (latitude: 30.2159, longitude: -92.0904)
To the most amazing person I've met
I know being with me is a tall order… I write this to the man who can handle it
When I was younger, I imagined what my husband would be like
Or what I wanted him to be, rather
Then, shortly realized that I’d probably never marry
My ideal man was unrealistic for someone as difficult and complex as myself
I decided that the things I wanted to do in life didn’t have a place for someone who would bring me down
Little did I know that the only way to accomplish the things I wanted to do was to have the man I now call my husband
God sent him to me in spite of myself and my ideas about my life
I have joined forces with someone who completes me
My weaknesses are his strengths
I can confide in him without being judged
I always have his support in everything I go through
He understands me when I don’t understand myself
He challenges me to be the best version of myself
I’m very grateful to walk this earth with the most amazing person I’ve ever known
I can’t wait to see where our path will lead us as we grow and love together
I love you baby
When I was younger, I imagined what my husband would be like
Or what I wanted him to be, rather
Then, shortly realized that I’d probably never marry
My ideal man was unrealistic for someone as difficult and complex as myself
I decided that the things I wanted to do in life didn’t have a place for someone who would bring me down
Little did I know that the only way to accomplish the things I wanted to do was to have the man I now call my husband
God sent him to me in spite of myself and my ideas about my life
I have joined forces with someone who completes me
My weaknesses are his strengths
I can confide in him without being judged
I always have his support in everything I go through
He understands me when I don’t understand myself
He challenges me to be the best version of myself
I’m very grateful to walk this earth with the most amazing person I’ve ever known
I can’t wait to see where our path will lead us as we grow and love together
I love you baby
To the most amazing person I've met
I know being with me is a tall order… I write this to the man who can handle it
When I was younger, I imagined what my husband would be like
Or what I wanted him to be, rather
Then, shortly realized that I’d probably never marry
My ideal man was unrealistic for someone as difficult and complex as myself
I decided that the things I wanted to do in life didn’t have a place for someone who would bring me down
Little did I know that the only way to accomplish the things I wanted to do was to have the man I now call my husband
God sent him to me in spite of myself and my ideas about my life
I have joined forces with someone who completes me
My weaknesses are his strengths
I can confide in him without being judged
I always have his support in everything I go through
He understands me when I don’t understand myself
He challenges me to be the best version of myself
I’m very grateful to walk this earth with the most amazing person I’ve ever known
I can’t wait to see where our path will lead us as we grow and love together
I love you baby
When I was younger, I imagined what my husband would be like
Or what I wanted him to be, rather
Then, shortly realized that I’d probably never marry
My ideal man was unrealistic for someone as difficult and complex as myself
I decided that the things I wanted to do in life didn’t have a place for someone who would bring me down
Little did I know that the only way to accomplish the things I wanted to do was to have the man I now call my husband
God sent him to me in spite of myself and my ideas about my life
I have joined forces with someone who completes me
My weaknesses are his strengths
I can confide in him without being judged
I always have his support in everything I go through
He understands me when I don’t understand myself
He challenges me to be the best version of myself
I’m very grateful to walk this earth with the most amazing person I’ve ever known
I can’t wait to see where our path will lead us as we grow and love together
I love you baby
Monday, June 8, 2009
Real Estate Market Conditions
The following statistics were extracted from reported sales to MLS, courtesy of Van Eaton & Romero.
Analyzing sales from January to May of 2008 in comparison to January to May 2009. All residential sales in Acadiana in all areas were considered.
There was a 20.66% decrease in number of home sales.
The average days on the market have increased by 22 days.
The current average sale price is $175,458, a 1.63% increase.
The current average median sale price is $177,609, a 2.58% increase.
The average list to sold price ratio is 96.63%, a .57% decrease.
For a full report, email me @ Kisha@KishaKana.com
Analyzing sales from January to May of 2008 in comparison to January to May 2009. All residential sales in Acadiana in all areas were considered.
There was a 20.66% decrease in number of home sales.
The average days on the market have increased by 22 days.
The current average sale price is $175,458, a 1.63% increase.
The current average median sale price is $177,609, a 2.58% increase.
The average list to sold price ratio is 96.63%, a .57% decrease.
For a full report, email me @ Kisha@KishaKana.com
Friday, June 5, 2009
Not all yard sales are created equal
Courtesy of Debbie Duplantis with Home Mortgage
Summer is one of the most popular seasons for holding a yard sale. But simply holding a yard sale doesn't necessarily mean you'll end the day with lots of extra money in your pocket. If you're planning on clearing out your clutter this summer, here are ten tips to help make your yard sale a success:
1-Start your yard sale earlier than other yard sales in your area so shoppers will start their shopping day with you.
2-Don't schedule your yard sale on a holiday weekend or during a big event in your area (like a sporting event or festival).
3-If it rains, take down your signs and reschedule your sale so you can maximize traffic on the day of your sale.
4-Before your own yard sale, visit other sales in your neighborhood to get an idea of typical prices.
5-Place all of your items (except for large items) on tables so shoppers don't have to bend.
6-If you plan to sell electrical items, have an outlet and extension cord handy so you can show shoppers that the items work.
7-If you want to sell larger ticket items, look for those items in a local circular and then attach the ad to your item so shoppers can see that they are getting a great deal.
8-If you have a variety of items that men would like, place them on their own table. If married couples stop by your sale, both parties will enjoy looking.
9-Advertise your sale ahead of time in your local newspaper classified section, on community boards at your local food stores, and online at places like www.Craigslist.org.
10-Wait until the morning of your garage sale to hang signs in your neighborhood, and make sure you take them down that day to avoid any fines from your homeowner's association or your town. You don't want to have to use all the cash you earn to pay a fine!
And remember, a successful sale is also a safe sale. Keep money in a pouch around your waist instead of in a cash box (which could get stolen while you are helping shoppers), don't accept checks (which could bounce), and never allow strangers inside your home to use the bathroom or telephone.
Follow these tips, and you'll be well on your way to having less clutter in your home, and more cash in your pocket!
Summer is one of the most popular seasons for holding a yard sale. But simply holding a yard sale doesn't necessarily mean you'll end the day with lots of extra money in your pocket. If you're planning on clearing out your clutter this summer, here are ten tips to help make your yard sale a success:
1-Start your yard sale earlier than other yard sales in your area so shoppers will start their shopping day with you.
2-Don't schedule your yard sale on a holiday weekend or during a big event in your area (like a sporting event or festival).
3-If it rains, take down your signs and reschedule your sale so you can maximize traffic on the day of your sale.
4-Before your own yard sale, visit other sales in your neighborhood to get an idea of typical prices.
5-Place all of your items (except for large items) on tables so shoppers don't have to bend.
6-If you plan to sell electrical items, have an outlet and extension cord handy so you can show shoppers that the items work.
7-If you want to sell larger ticket items, look for those items in a local circular and then attach the ad to your item so shoppers can see that they are getting a great deal.
8-If you have a variety of items that men would like, place them on their own table. If married couples stop by your sale, both parties will enjoy looking.
9-Advertise your sale ahead of time in your local newspaper classified section, on community boards at your local food stores, and online at places like www.Craigslist.org.
10-Wait until the morning of your garage sale to hang signs in your neighborhood, and make sure you take them down that day to avoid any fines from your homeowner's association or your town. You don't want to have to use all the cash you earn to pay a fine!
And remember, a successful sale is also a safe sale. Keep money in a pouch around your waist instead of in a cash box (which could get stolen while you are helping shoppers), don't accept checks (which could bounce), and never allow strangers inside your home to use the bathroom or telephone.
Follow these tips, and you'll be well on your way to having less clutter in your home, and more cash in your pocket!
Monday, March 30, 2009
Downtown Alive! 2009 Schedule
DOWNTOWN ALIVE! 25 YEAR ANNIVESARY CONTINUES WITH SPRING SEASON
Downtown Alive! is now a 25-year-old community tradition and a popular staple in Acadiana’s cultural and social calendar. Downtown Alive! was first produced by Downtown Lafayette Unlimited in fall 1983 and has continued with a spring and fall season of free, family-friendly, outdoor concerts each year since.
The 25th Anniversary continues this spring, with a concert each Friday between March 13 and June 5 from 5:30 to 8:30 pm at two downtown park venues. DTA! is sponsored by Cox, Lafayette Coca Cola, and The Louisiana Campaign for Tobacco-Free Living.
Spring 2009 25th Anniversary Series features four Grammy nominated artists, and DTA! favorites of the past and present with genres from Cajun & Swamp Pop to Reggae and Rock.
Spring 2009 25th Anniversary Season Schedule
March 13 T.K. Hulin, Steve Adams & Smoke w/Special Guest Charlene Howard – Swamp Pop - Parc International
March 20 Louisiana Red - Classic covers & variety - Parc Sans Souci
March 27 Lafayette’s Bayou Boys - Cajun variety - Parc Sans Souci
April 3 Tab Benoit – Blues/Traditional Country/Vintage R&B - Parc International
April 10 Good Friday – No DTA!
April 17 Marcia Ball – New Orleans R&B/ Gulf Coast Blues - Parc International
April 24 Festival International de Louisiane
May 1 Rex Moroux – Roots Rock - Parc Sans Souci
May 8 Steve Riley & The Mamou Playboys w/Special Guest Geno Delafose – Cajun/Zydeco - Parc International
May 15 Krossfyre - R&B/Variety - Parc Sans Souci
May 22 Lil’ Buck Sinegal – Blues - Parc Sans Souci
May 29 Brass Bed w/special guests The Howdies – Rock/Americana - Parc Sans Souci
June 5 True Man Posse – Creole Reggae - Parc Sans Souci
Downtown Alive! is now a 25-year-old community tradition and a popular staple in Acadiana’s cultural and social calendar. Downtown Alive! was first produced by Downtown Lafayette Unlimited in fall 1983 and has continued with a spring and fall season of free, family-friendly, outdoor concerts each year since.
The 25th Anniversary continues this spring, with a concert each Friday between March 13 and June 5 from 5:30 to 8:30 pm at two downtown park venues. DTA! is sponsored by Cox, Lafayette Coca Cola, and The Louisiana Campaign for Tobacco-Free Living.
Spring 2009 25th Anniversary Series features four Grammy nominated artists, and DTA! favorites of the past and present with genres from Cajun & Swamp Pop to Reggae and Rock.
Spring 2009 25th Anniversary Season Schedule
March 13 T.K. Hulin, Steve Adams & Smoke w/Special Guest Charlene Howard – Swamp Pop - Parc International
March 20 Louisiana Red - Classic covers & variety - Parc Sans Souci
March 27 Lafayette’s Bayou Boys - Cajun variety - Parc Sans Souci
April 3 Tab Benoit – Blues/Traditional Country/Vintage R&B - Parc International
April 10 Good Friday – No DTA!
April 17 Marcia Ball – New Orleans R&B/ Gulf Coast Blues - Parc International
April 24 Festival International de Louisiane
May 1 Rex Moroux – Roots Rock - Parc Sans Souci
May 8 Steve Riley & The Mamou Playboys w/Special Guest Geno Delafose – Cajun/Zydeco - Parc International
May 15 Krossfyre - R&B/Variety - Parc Sans Souci
May 22 Lil’ Buck Sinegal – Blues - Parc Sans Souci
May 29 Brass Bed w/special guests The Howdies – Rock/Americana - Parc Sans Souci
June 5 True Man Posse – Creole Reggae - Parc Sans Souci
Thursday, March 19, 2009
Acadiana Residential Market Stats February 2009 vs. 2008
In summary, the number of home sales have dropped by 25% and the time on the market has increased by 21%. The average sales price has only seen a 2% drop in price. These figures are rounded. For a full report courtesy of Van Eaton & Romero and prepared by CEO Bill Bacque...please email me @ Kisha@KishaKana.com
Monday, March 16, 2009
Properties that my realtor can help me with....
Survey Question #6: A realtor can only help me with the homes that their company has listed:
A) True 11%
B) False 84%
C) They can only help me with the properties that they are the listing agent on 5%
I've covered most of this on the other survey Q & A blog. And most of the participants got this question correct. But I still constantly hear that people are confused about this. The correct answer is FALSE. Once again, your designated realtor can assist you with ANY home on the market. That includes homes listed with other realtors, other companies and even for sale by owners. So when you see a sign and you want information, call your realtor before the number advertised for the home. Your realtor can access all of the information and your interest will be represented.
On a different note, the GoGetters have a couple charities we are currently raising money for. Please let us know if you're interested in contributing.
Cystic Fibrosis Foundation. We will be walking in May to raise money to help find a cure for this disease. Our niece, Myla Mistric, was born with this. It is a disease that affects the lungs and causes children and peoople to live a life of constant medical attention. Currently there is no cure and the median life span for someone with CF is 40 years. We are selling donation "certificates" for $1 each.
We are also selling raffle tickets for the Catahoula Church Fair. This is my hometown. Tickets are $2 each and the drawing will be on April 26, 2009. Prizes are as follows:
1st place Homemade Quilt
2nd Cypress Gun Cabinet
3rd Gas BBQ pit
4th 20" digital LCD TV
5th Kitchen Aid Mixer
6th Canon Digital Camera
7th AM/FM/CD player
8th $100 Cash
A) True 11%
B) False 84%
C) They can only help me with the properties that they are the listing agent on 5%
I've covered most of this on the other survey Q & A blog. And most of the participants got this question correct. But I still constantly hear that people are confused about this. The correct answer is FALSE. Once again, your designated realtor can assist you with ANY home on the market. That includes homes listed with other realtors, other companies and even for sale by owners. So when you see a sign and you want information, call your realtor before the number advertised for the home. Your realtor can access all of the information and your interest will be represented.
On a different note, the GoGetters have a couple charities we are currently raising money for. Please let us know if you're interested in contributing.
Cystic Fibrosis Foundation. We will be walking in May to raise money to help find a cure for this disease. Our niece, Myla Mistric, was born with this. It is a disease that affects the lungs and causes children and peoople to live a life of constant medical attention. Currently there is no cure and the median life span for someone with CF is 40 years. We are selling donation "certificates" for $1 each.
We are also selling raffle tickets for the Catahoula Church Fair. This is my hometown. Tickets are $2 each and the drawing will be on April 26, 2009. Prizes are as follows:
1st place Homemade Quilt
2nd Cypress Gun Cabinet
3rd Gas BBQ pit
4th 20" digital LCD TV
5th Kitchen Aid Mixer
6th Canon Digital Camera
7th AM/FM/CD player
8th $100 Cash
Tuesday, March 10, 2009
FIRST‐TIME HOMEBUYER TAX CREDIT
Frequently Asked Questions
In 2008, Congress enacted a $7500 tax credit designed to be an incentive for first‐time homebuyers to purchase a home. The credit was designed as a mechanism to decrease the over‐supply of homes for sale.
For 2009, Congress has increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009.
Tax Credits ‐‐ The Basics
1. What’s this new homebuyer tax incentive for 2009?
The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.
2. Who is eligible?
Only first‐time homebuyers are eligible. A person is considered a first‐time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.
3. How does a tax credit work?
Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual’s income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of
the tax due. ($9,500 ‐ $8000 = $1500)
4. So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000?
This tax credit is what’s called “refundable” credit. Thus, if the eligible purchaser’s total tax liability was $6000, the IRS would send the purchaser a check for $2000. The refundable amount is the difference between $8000 credit amount and the amount of tax liability. ($8000 ‐ $6000 = $2000) Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.
5. How does withholding affect my tax credit and my refund?
A few examples are provided at the end of this document. There are several steps in this calculation, but most income tax software programs are equipped to make that determination.
6. Is there an income restriction?
Yes. The income restriction is based on the tax filing status the purchaser claims when filing his/her income tax return. Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than $75,000. Married couples who file a Joint return may have income of no more than $150,000.
7. How is my “income” determined?
For most individuals, income is defined and calculated in the same manner as their Adjusted Gross Income (AGI) on their 1040 income tax return. AGI includes items like wages, salaries, interest and dividends, pension and retirement earnings, rental income and a host of other elements. AGI is the final number that appears on the bottom line of the front page of an IRS Form 1040.
8. What if I worked abroad for part of the year?
Some individuals have earned income and/or receive housing allowances while working outside the US. Their income will be adjusted to reflect those items to measure Modified Adjusted Gross Income (MAGI). Their eligibility for the credit will be based on their MAGI.
9. Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefit of the credit?
Not always. The credit phases‐out between $75,000 ‐ $95,000 for singles and $150,000 ‐ $170,000 for married filing joint. The closer a buyer comes to the maximum phase‐out amount, the smaller the credit will be. The law provides a formula to gradually withdraw the credit. Thus, the credit will disappear after an individual’s income reaches $95,000 (single return) or $170,000 (joint return).
For example, if a married couple had income of $165,000, their credit would be reduced by 75% as shown:
Couple’s income $165,000
Income limit 150,000
Excess income $15,000
The excess income amount ($15,000 in this example) is used to form a fraction. The numerator of the fraction is the excess income amount ($15,000). The denominator is $20,000 (specified by the statute). In this example, the disallowed portion of the credit is 75% of $8000, or $6000
($15,000/$20,000 = 75% x $8000 = $6000)
Stated another way, only 25% of the credit amount would be allowed.
In this example, the allowable credit would be $2000 (25% x $8000 = $2000)
10. What’s the definition of “principal residence?”
Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%). It is also defined as “owner‐occupied” housing. The term includes single-family detached housing, condos or co‐ops, townhouses or any similar type of new or existing dwelling. Even some houseboats or manufactured homes count as principal residences.
11. Are there restrictions on the location of the property?
Yes. The home must be located in the United States. Property located outside the US is not eligible for the credit.
12. Are there restrictions related to the financing for the mortgage on the property?
In 2009, most financing arrangements are acceptable and will not affect eligibility for the credit.
Congress eliminated the financing restriction that applied in 2008. (In 2008, purchasers were ineligible for the $7500 credit if the financing was obtained by means of mortgage revenue bonds.) Now, mortgage‐revenue bond financing will not disqualify an otherwise‐eligible purchaser. (Mortgage revenue bonds are tax‐exempt bonds issued by a state housing agency. Proceeds from the bonds must be used for below market loans to qualified buyers.)
13. Do I have to repay the 2009 tax credit?
NO. There is no repayment for 2009 tax credits.
14. Do 2008 purchasers still have to repay their tax credit?
YES. The $7500 credit in 2008 was more like an interest‐free loan. All eligible purchasers who claimed the 2008 credit will still be required to repay it over 15 years, starting with their 2010 tax return.
Some Practical Questions
15. How do I apply for the credit?
There is no pre‐purchase authorization, application or similar approval process. All eligible purchasers simply claim the credit on their IRS Form 1040 tax return. The credit will be reflected on a new Form 5405 that will be attached to the 1040. Form 5405 can be found at www.irs.gov.
16. So I can’t use the credit amount as part of my downpayment?
No. Congress tried hard to devise a mechanism that would make the funds available for closing costs, but found that pre‐funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction.
17. So there’s no way to get any cash flow benefits before I file my tax return?
Yes, there is. Any first‐time homebuyers who believe they are eligible for all or part of the credit can modify their income tax withholding (through their employers) or adjust their quarterly estimated tax payments. Individuals subject to income tax withholding would get an IRS Form W‐4 from their employer, follow the instructions on the schedules provided and give the completed Form W‐4 back to the employer. In many cases their withholding would decrease and their take‐home pay would increase. Those who make estimated tax payments would make similar adjustments.
Some “Real World” Examples
18. What if I purchase later this year but can’t get to settlement before December 1?
The credit is available for purchases before December 1, 2009. A home is considered as “purchased” when all events have occurred that transfer the title from the seller to the new purchaser. Thus, closings must occur before December 1, 2009 for purchases to be eligible for the credit.
19. I haven’t even filed my 2008 tax return yet. If I buy in 2009, do I have to wait until next year to get the benefit of the credit?
You’ll have a helpful choice that might speed up the process. Eligible homebuyers who make their purchase between January 1, 2009 and December 1, 2009 can treat the purchase as if it had occurred on December 31, 2008. Thus, they can claim the credit on their 2008 tax return that is due on April 15, 2009. They actually have three filing options.
• If they purchase between January 1, 2009 and April 15, 2009, they can claim the $8000 credit on the 2008 return due on April 15.
• They can extend their 2008 income‐tax filing until as late as October 15, 2009. (The IRS grants automatic extensions, but the taxpayer must file for the extension. See www.irs.gov for
instructions on how to obtain an extension.)
• If they have filed their 2008 return before they purchase the home, they may file an amended
2008 tax return on Form 1040X. (Form 1040X is available at www.irs.gov)
Of course, 2009 purchasers will always have the option of claiming the credit for the 2009 purchase on their 2009 return. Their 2009 tax return is due on April 15, 2010.
20. I purchased my home in early 2009 before the stimulus bill was enacted. I claimed a $7500 tax credit on my 2008 return as prior law had permitted. Am I restricted to just a $7500 credit?
No, you would qualify for the $8000 credit. Eligible purchasers who have already claimed the $7500 credit on a 2008 return for a 2009 purchase may file an amended return (IRS Form 1040X) for the 2008 tax year. This amended return will enable them to obtain the additional $500 credit amount.
21. If I claim my 2009 $8000 credit on my 2008 tax return, will I have to repay the credit just as the 2008 credits are repaid?
No. Congress anticipated this confusion and has made specific provision so that there would be no repayment of 2009 credits that are claimed on 2008 returns.
22. I made an eligible purchase of a principal residence in May 2008 and claimed the $7500 credit on my 2008 tax return. My brother, who has never owned a home, wishes to purchase a partial interest in the home this spring and move in. Will he qualify for the $8000 credit, as well?
No. Any purchase of a principal residence (or interest in a principal residence) from a related party such as a sibling, parent, grandparent, aunt or uncle is ineligible for the tax credit. Since you and your brother are related in this way, he cannot qualify for the credit on any portion of the home that he purchases from you, even if he is a first‐time homebuyer.
23. I live in the District of Columbia. If I qualify as a first‐time homebuyer, can I use both the $5000 DC credit and the $8000 credit?
No; double dipping is not allowed. You would be eligible for only the $8000 credit. This will be an
advantage because of the higher credit amount, plus the eligibility requirements for the $8000 credit are somewhat more easily satisfied than the DC credit.
24. I know there is no repayment requirement for the $8000 credit. Will I ever have to repay any of the credit back to the government?
One situation does require a recapture payment back to the government. If you claim the credit but then sell the property within 3 years of the date of purchase, you are required to pay back the full amount of any credit, including any refund you received from it. A few exceptions apply. (See below, #24). Note that this same 3‐year recapture rule applies, as well, to the $7500 credit available for 2008.
This provision is designed as an anti‐flipping rule.
25. What if I die or get divorced or my property is ruined in a natural disaster within the 3 years?
The repayment rules are eased for many circumstances. If the homeowner who used the credit dies within the first three years of ownership, there is no recapture. Special rules make adjustments for people who sell homes as part of a divorce settlement, as well. Similarly, adjustments are made in the case of a home that is part of an involuntary conversion (property is destroyed in a natural disaster or subject to condemnation by eminent domain by an authorized agency) within the first three years.
26. I have a home under construction. Am I eligible for the credit?
Yes, so long as you actually occupy the home before December 1, 2009.
WITHHOLDING EXAMPLES:
Note: The impact of estimated tax payments would be the same.
Situation 1: Sally plans her withholding so that her withholding is as close as possible to what she
anticipates as her income tax liability for the year. When she fills out her 1040, her liability is $6000.
She has had $6000 withheld from her paycheck. She also qualifies for the $8000 homebuyer credit.
Result: Sally’s withholding satisfies her tax liability and reduces it to zero. She will receive a refund of the full $8000.
Situation 2: Nick and Nora file a joint return. Nick is self‐employed and makes estimated payments; Nora has taxes withheld from her salary. When they compute their taxes, their combined withholding and estimated tax payments are $11,000. Their income tax liability is $9800. They also qualified as first time homebuyers and are eligible for the $8000 refundable tax credit.
Result: Ordinarily, their combined estimated tax payments and withholding would make them eligible for a refund of $1200 ($11,000 ‐ $9800 = $1200). Because they are eligible for the refundable tax credit as well, they will receive a refund of $9200 ($1200 income tax refund + $8000 refundable tax credit =$9200).
Situation 3: Cesar and LuzMaria both have income taxes withheld from their salaries and file a joint return. When they file their income tax return, their combined withholding is $5000. However, their total tax liability is $7200, generating an additional income tax liability of $2200 ($7200 ‐ $5000). They also qualify for the $8000 first‐time homebuyer tax credit.
Result: Cesar and LuzMaria have been under‐withheld by $2200. Ordinarily, they would be required to pay the additional $2200 they owe (plus any applicable interest and penalties). Because they are eligible for the refundable homebuyer tax credit, the credit will cover the $2200 additional liability. In addition, they will receive an income tax refund of $5800 ($8000 ‐ $2200 = $5800). If they owed penalties and/or interest, that amount would reduce the refund.
NOTE: This information was developed by The National Association of REALTORS Governmental Affairs Division. It is being distributed by Van Eaton & Romero, Inc. as a public service and is not intended to replace or supersede the advice of a competent tax professional.
We recommend that you direct any specific questions beyond the scope of the information contained herein to your tax advisor.
Frequently Asked Questions
In 2008, Congress enacted a $7500 tax credit designed to be an incentive for first‐time homebuyers to purchase a home. The credit was designed as a mechanism to decrease the over‐supply of homes for sale.
For 2009, Congress has increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009.
Tax Credits ‐‐ The Basics
1. What’s this new homebuyer tax incentive for 2009?
The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.
2. Who is eligible?
Only first‐time homebuyers are eligible. A person is considered a first‐time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.
3. How does a tax credit work?
Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual’s income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of
the tax due. ($9,500 ‐ $8000 = $1500)
4. So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000?
This tax credit is what’s called “refundable” credit. Thus, if the eligible purchaser’s total tax liability was $6000, the IRS would send the purchaser a check for $2000. The refundable amount is the difference between $8000 credit amount and the amount of tax liability. ($8000 ‐ $6000 = $2000) Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.
5. How does withholding affect my tax credit and my refund?
A few examples are provided at the end of this document. There are several steps in this calculation, but most income tax software programs are equipped to make that determination.
6. Is there an income restriction?
Yes. The income restriction is based on the tax filing status the purchaser claims when filing his/her income tax return. Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than $75,000. Married couples who file a Joint return may have income of no more than $150,000.
7. How is my “income” determined?
For most individuals, income is defined and calculated in the same manner as their Adjusted Gross Income (AGI) on their 1040 income tax return. AGI includes items like wages, salaries, interest and dividends, pension and retirement earnings, rental income and a host of other elements. AGI is the final number that appears on the bottom line of the front page of an IRS Form 1040.
8. What if I worked abroad for part of the year?
Some individuals have earned income and/or receive housing allowances while working outside the US. Their income will be adjusted to reflect those items to measure Modified Adjusted Gross Income (MAGI). Their eligibility for the credit will be based on their MAGI.
9. Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefit of the credit?
Not always. The credit phases‐out between $75,000 ‐ $95,000 for singles and $150,000 ‐ $170,000 for married filing joint. The closer a buyer comes to the maximum phase‐out amount, the smaller the credit will be. The law provides a formula to gradually withdraw the credit. Thus, the credit will disappear after an individual’s income reaches $95,000 (single return) or $170,000 (joint return).
For example, if a married couple had income of $165,000, their credit would be reduced by 75% as shown:
Couple’s income $165,000
Income limit 150,000
Excess income $15,000
The excess income amount ($15,000 in this example) is used to form a fraction. The numerator of the fraction is the excess income amount ($15,000). The denominator is $20,000 (specified by the statute). In this example, the disallowed portion of the credit is 75% of $8000, or $6000
($15,000/$20,000 = 75% x $8000 = $6000)
Stated another way, only 25% of the credit amount would be allowed.
In this example, the allowable credit would be $2000 (25% x $8000 = $2000)
10. What’s the definition of “principal residence?”
Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%). It is also defined as “owner‐occupied” housing. The term includes single-family detached housing, condos or co‐ops, townhouses or any similar type of new or existing dwelling. Even some houseboats or manufactured homes count as principal residences.
11. Are there restrictions on the location of the property?
Yes. The home must be located in the United States. Property located outside the US is not eligible for the credit.
12. Are there restrictions related to the financing for the mortgage on the property?
In 2009, most financing arrangements are acceptable and will not affect eligibility for the credit.
Congress eliminated the financing restriction that applied in 2008. (In 2008, purchasers were ineligible for the $7500 credit if the financing was obtained by means of mortgage revenue bonds.) Now, mortgage‐revenue bond financing will not disqualify an otherwise‐eligible purchaser. (Mortgage revenue bonds are tax‐exempt bonds issued by a state housing agency. Proceeds from the bonds must be used for below market loans to qualified buyers.)
13. Do I have to repay the 2009 tax credit?
NO. There is no repayment for 2009 tax credits.
14. Do 2008 purchasers still have to repay their tax credit?
YES. The $7500 credit in 2008 was more like an interest‐free loan. All eligible purchasers who claimed the 2008 credit will still be required to repay it over 15 years, starting with their 2010 tax return.
Some Practical Questions
15. How do I apply for the credit?
There is no pre‐purchase authorization, application or similar approval process. All eligible purchasers simply claim the credit on their IRS Form 1040 tax return. The credit will be reflected on a new Form 5405 that will be attached to the 1040. Form 5405 can be found at www.irs.gov.
16. So I can’t use the credit amount as part of my downpayment?
No. Congress tried hard to devise a mechanism that would make the funds available for closing costs, but found that pre‐funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction.
17. So there’s no way to get any cash flow benefits before I file my tax return?
Yes, there is. Any first‐time homebuyers who believe they are eligible for all or part of the credit can modify their income tax withholding (through their employers) or adjust their quarterly estimated tax payments. Individuals subject to income tax withholding would get an IRS Form W‐4 from their employer, follow the instructions on the schedules provided and give the completed Form W‐4 back to the employer. In many cases their withholding would decrease and their take‐home pay would increase. Those who make estimated tax payments would make similar adjustments.
Some “Real World” Examples
18. What if I purchase later this year but can’t get to settlement before December 1?
The credit is available for purchases before December 1, 2009. A home is considered as “purchased” when all events have occurred that transfer the title from the seller to the new purchaser. Thus, closings must occur before December 1, 2009 for purchases to be eligible for the credit.
19. I haven’t even filed my 2008 tax return yet. If I buy in 2009, do I have to wait until next year to get the benefit of the credit?
You’ll have a helpful choice that might speed up the process. Eligible homebuyers who make their purchase between January 1, 2009 and December 1, 2009 can treat the purchase as if it had occurred on December 31, 2008. Thus, they can claim the credit on their 2008 tax return that is due on April 15, 2009. They actually have three filing options.
• If they purchase between January 1, 2009 and April 15, 2009, they can claim the $8000 credit on the 2008 return due on April 15.
• They can extend their 2008 income‐tax filing until as late as October 15, 2009. (The IRS grants automatic extensions, but the taxpayer must file for the extension. See www.irs.gov for
instructions on how to obtain an extension.)
• If they have filed their 2008 return before they purchase the home, they may file an amended
2008 tax return on Form 1040X. (Form 1040X is available at www.irs.gov)
Of course, 2009 purchasers will always have the option of claiming the credit for the 2009 purchase on their 2009 return. Their 2009 tax return is due on April 15, 2010.
20. I purchased my home in early 2009 before the stimulus bill was enacted. I claimed a $7500 tax credit on my 2008 return as prior law had permitted. Am I restricted to just a $7500 credit?
No, you would qualify for the $8000 credit. Eligible purchasers who have already claimed the $7500 credit on a 2008 return for a 2009 purchase may file an amended return (IRS Form 1040X) for the 2008 tax year. This amended return will enable them to obtain the additional $500 credit amount.
21. If I claim my 2009 $8000 credit on my 2008 tax return, will I have to repay the credit just as the 2008 credits are repaid?
No. Congress anticipated this confusion and has made specific provision so that there would be no repayment of 2009 credits that are claimed on 2008 returns.
22. I made an eligible purchase of a principal residence in May 2008 and claimed the $7500 credit on my 2008 tax return. My brother, who has never owned a home, wishes to purchase a partial interest in the home this spring and move in. Will he qualify for the $8000 credit, as well?
No. Any purchase of a principal residence (or interest in a principal residence) from a related party such as a sibling, parent, grandparent, aunt or uncle is ineligible for the tax credit. Since you and your brother are related in this way, he cannot qualify for the credit on any portion of the home that he purchases from you, even if he is a first‐time homebuyer.
23. I live in the District of Columbia. If I qualify as a first‐time homebuyer, can I use both the $5000 DC credit and the $8000 credit?
No; double dipping is not allowed. You would be eligible for only the $8000 credit. This will be an
advantage because of the higher credit amount, plus the eligibility requirements for the $8000 credit are somewhat more easily satisfied than the DC credit.
24. I know there is no repayment requirement for the $8000 credit. Will I ever have to repay any of the credit back to the government?
One situation does require a recapture payment back to the government. If you claim the credit but then sell the property within 3 years of the date of purchase, you are required to pay back the full amount of any credit, including any refund you received from it. A few exceptions apply. (See below, #24). Note that this same 3‐year recapture rule applies, as well, to the $7500 credit available for 2008.
This provision is designed as an anti‐flipping rule.
25. What if I die or get divorced or my property is ruined in a natural disaster within the 3 years?
The repayment rules are eased for many circumstances. If the homeowner who used the credit dies within the first three years of ownership, there is no recapture. Special rules make adjustments for people who sell homes as part of a divorce settlement, as well. Similarly, adjustments are made in the case of a home that is part of an involuntary conversion (property is destroyed in a natural disaster or subject to condemnation by eminent domain by an authorized agency) within the first three years.
26. I have a home under construction. Am I eligible for the credit?
Yes, so long as you actually occupy the home before December 1, 2009.
WITHHOLDING EXAMPLES:
Note: The impact of estimated tax payments would be the same.
Situation 1: Sally plans her withholding so that her withholding is as close as possible to what she
anticipates as her income tax liability for the year. When she fills out her 1040, her liability is $6000.
She has had $6000 withheld from her paycheck. She also qualifies for the $8000 homebuyer credit.
Result: Sally’s withholding satisfies her tax liability and reduces it to zero. She will receive a refund of the full $8000.
Situation 2: Nick and Nora file a joint return. Nick is self‐employed and makes estimated payments; Nora has taxes withheld from her salary. When they compute their taxes, their combined withholding and estimated tax payments are $11,000. Their income tax liability is $9800. They also qualified as first time homebuyers and are eligible for the $8000 refundable tax credit.
Result: Ordinarily, their combined estimated tax payments and withholding would make them eligible for a refund of $1200 ($11,000 ‐ $9800 = $1200). Because they are eligible for the refundable tax credit as well, they will receive a refund of $9200 ($1200 income tax refund + $8000 refundable tax credit =$9200).
Situation 3: Cesar and LuzMaria both have income taxes withheld from their salaries and file a joint return. When they file their income tax return, their combined withholding is $5000. However, their total tax liability is $7200, generating an additional income tax liability of $2200 ($7200 ‐ $5000). They also qualify for the $8000 first‐time homebuyer tax credit.
Result: Cesar and LuzMaria have been under‐withheld by $2200. Ordinarily, they would be required to pay the additional $2200 they owe (plus any applicable interest and penalties). Because they are eligible for the refundable homebuyer tax credit, the credit will cover the $2200 additional liability. In addition, they will receive an income tax refund of $5800 ($8000 ‐ $2200 = $5800). If they owed penalties and/or interest, that amount would reduce the refund.
NOTE: This information was developed by The National Association of REALTORS Governmental Affairs Division. It is being distributed by Van Eaton & Romero, Inc. as a public service and is not intended to replace or supersede the advice of a competent tax professional.
We recommend that you direct any specific questions beyond the scope of the information contained herein to your tax advisor.
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