First Time Homebuyer

H.R. 4853: Real Estate Provisions in the 2010 Tax Relief Bill

On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853) extending the Bush-era tax rates and a host of other expired and expiring provisions. The legislation is not "paid for," so there are no revenue raisers taken from real estate or other industry groups. The package provides temporary extensions of its numerous provisions. Some are retroactive, as well, so that the rules that had been in place previously will operate as if they had never expired. Included in the bill are provisions that affect real estate investment and operationssuch as energy-efficiency tax credits, capital gains, and more. A few key provisions of interest to REALTORS include:
  • Retention of Bush-era tax brackets through the 2011 and 2012 tax years;
  • Retention of the capital gains tax rate of 15 percent for assets sold or disposed of during 2011 and 2012;
  • Reduction of payroll taxes for employees and self-employed individuals during 2011;
  • Extension of numerous energy efficiency credits through December 31, 2011, including: the Energy Efficient New Homes, Energy Efficient Existing Homes, and Energy Efficient Buildings credits.
For more detailed information on the provisions of this bill affecting real estate, home owners, and REALTORS as small business owners, please see the see the full summary. Article Courtesy of National Association of REALTORS

HOME OWNERSHIP MATTERS

HOME

OWNERSHIP

MATTERS

TO PEOPLE...TO COMMUNITIES... TO AMERICA.

Studies show that home ownership has a significant positive impact on net worth, educational achievement, civic participation, health and overall quality of life. That's why, more than 100 years, REALTORS have helped people find their piece of the American Dream. Now, with some questioning whether home ownership is still good for America, it's more important than ever to stand up for home ownership...in your community and it the nation's capital. Find out more about why Home Ownership Matters, how the NATIONAL ASSOCIATION OF REALTORS, is standing up for it, and how you can help spread the word, at REALTOR.org/homeownership.

WHY HOME OWNERSHIP MATTERS

TO PEOPLE...

  • Home owners are happier and healthier and enjoy a greater feeling of control over their lives.
  • Owning a home is one of the best ways to build long-term wealth. Historically, a home owner's net worth has ranged from 31 to 46 times that of a renter.
  • Home owners are free to redecorate, renovate, and modify their homes as they wish.
  • most home owners enjoy stable housing costs-a fixed-rate mortgage payment might not change for 15 to 30 years while rent typically increases 3% a year.
  • Home owners can typically deduct mortgage interest and property taxes on their federal individual income tax return.
TO COMMUNITIES...
  • People who own homes vote more, volunteer more and contribute more to their neighborhoods.
  • Home owners do not more as frequently as renters, providing more neighborhood stability. In turn this stability helps reduce crime and supports neighborhood upkeep.
  • Children of home owners do better in school, stay in school longer, are more likely to participate in organized activities and spend less time on front of the television.
TO AMERICA...
  • 67% of American households are owner-occupied. America is a nation of home owners.
  • Home owners pay 80 to 90% of federal individual income taxes, contributing to federal programs that benefit all Americans.
  • Every home purchased pumps $60,000 into the economy for furniture, home improvements and related items.
  • Housing accounts for more than 15% of the national Gross Domestic Product, a key driver of our natioinal economy.
  • For these reasons and more, home ownership is the American Dream!
--Courtesy of the NATIONAL ASSOCIATION OF REALTORS

Check out Lynnfield Homes: Congress Extended the Tax Credit!

Congress heard our need to both extend and expand the homebuyer tax credit to continue stimulating the housing sector of the economy.The Senate voted 98-0 and the House voted 403-12 on legislation that includes the extension and expansion of the credit. This is a perfect time for first time homebuyers, or experienced buyers, to check out some of the Lynnfield Homes Northrup Associate Realtors offers to Boston area home buyers.
Explore this Lynnfield home. An ample amount of space, extensive utilities, beautiful landscaping, and a fresh new look make it a perfect piece of Lynnfield real estate to take advantage of the tax credit with! lynnfield home
While markets differ from area to area, overall interest rates are low and housing choices are abundant. Let a Northrup realtor help you, someone who understands the nuances of each neighborhood and can apply real time local market expertise to your situation. Now more than ever, a Northrup REALTOR can answer all your questions and help you sell or buy your home. To read more about the consumer tax credit log, click here.