My Real Estate Blog

It's official, we are on the road to recovery.  We can speculate all we want, and there has been much speculation, but time will tell what really will happen.

President Obama called his $787 billion stimulus package the "most sweeping economic recovery act in our history" as he signed legislation in Denver Tuesday to create works projects and tax cuts designed to stimulate the sagging economy.

"I don't want to pretend that today marks the end of our economic problems," Obama said. "But today does mark the beginning of the end ... the beginning of what we need to do to provide relief" for families that can't pay their billls.

Before the signing Obama toured a solar panel installation project at the Denver Museum of Nature & Science in order to highlight the "green jobs" projects that are part of the stimulus package.

Real Estate Related:

First-time homebuyer credit:

The tax package increases the $7,500 first-time homebuyer credit to $8,000 for primary residences purchased between Jan. 1, 2009 and Nov. 30, 2009, and eliminates the requirement that the credit be repaid, as long as the house isn’t sold within three years. Also, "First-Time" means as long as you have not owned a home in the last three years.

Extended homeowner energy-saving credits:

The 10 percent tax credit for energy-saving home improvements climbs to 30 percent and is extended through 2010. Improvements that qualify for the credit include energy-efficient skylights, windows and outer doors, along with energy-saving water heaters, central air conditioners and biomass stoves.
The bill also eliminates individual credit caps for the different types of property, and instead imposes a $1,500 cap on all qualifying property.

Non Real Estate Related:

Making work pay credit:

Workers and the self-employed would get a payroll tax credit for 2009 and 2010 of up to $400 a year for single taxpayers, and up to $800 for couples filing jointly.

The IRS will get the money to taxpayers by adjusting the withholding tables, thereby boosting paychecks. The increase could be as much as $40 per month per worker, depending on when the withholding tables are changed. Self-employed workers will claim the credit on their tax returns.  In the meantime, they can reduce their estimated tax payments for 2009.
For single tax filers, the credit will begin phasing out at an Adjusted Gross Income (AGI) of $75,000. For couples filing jointly, the phaseout zone will start at $150,000 of AGI. (Adjusted Gross Income is your total income from wages and other income minus certain adjustments, such as deductible IRA contributions and alimony paid.)

Of course with any tax related stuff you should always check with your CPA, Tax Advisor.