Tax Credit
Take Advantage of the First Time Homebuyer’s Tax Credit!
July 29, 2009 by staff · Leave a Comment
Now is the time to take advantage of the first time homebuyer’s tax credit. Check out this video to learn more on how to take advantage of this opportunity. If you have any questions please email me at lindsey@jimbigelow.com.
Using First-Time Homebuyer Tax Credits for the Downpayment
May 18, 2009 by Jim Bigelow · Leave a Comment
The American Recovery and Reinvestment Act of 2009 (Recovery Act) provides for as much as an
$8000 tax credit to qualified first-time homebuyers. FHA supports this important Administration
initiative to promote homeownership. This mortgagee letter provides:
- Basic information on the first-time homebuyer credit obtained from the Internal Revenue Service (IRS) website. Complete information on how the first time homebuyer tax credit works, including the eligibility requirements for the tax credit, the amount of the tax credit that a first-time homebuyer may be eligible to receive, and how a homebuyer may claim the tax credit is available on the IRS website.
- Guidance on how Federal, state, and local government agencies, nonprofits instrumentalities of government and FHA-approved nonprofits may assist homebuyers that are eligible for the tax credit.
About the First-Time Homebuyer Tax Credit
(Please check the IRS website to ensure you have up-to-date information)
Amount of the tax credit:
Generally, the credit is the smaller of:
- .. $8000 or
- .. 10% of the purchase price of the home
A phase-out of the credit begins when the taxpayer’s modified adjusted income exceeds
$75,000 or $150,000 if married filing jointly, and is eliminated completely at $95,000 or
$170,000 if married filing jointly.
As a “refundable” tax credit, taxes owed by or refunds due to the taxpayer are factored
into the calculation.
Claiming the tax credit:
Filing form IRS 5405 , “First-Time Homebuyer Credit” along with filing:
- The 2008 tax return (if not yet filed)
- An amended 2008 tax return (if already filed)
- The 2009 tax return
Eligibility for the tax credit
- First-time homebuyers, defined by IRS as those not having had any ownership, including that with a spouse if married, during the three-year period ending on the date of purchase.
- Owner-occupants who purchase a principal residence and close on the mortgage before December 1, 2009.
- First-time homebuyers must purchase the property from a source unrelated to them, i.e., they cannot purchase the house from a spouse, parent, grandparent, child, or acquire the property by gift or inheritance and obtain the tax credit.
FHA Guidance
The Tax Credit: Secondary Financing:
Entities that can offer tax credit advances with second liens.
- Federal, state, and local governmental agencies and nonprofit instrumentalities of government.
- FHA-approved nonprofits.
Additional information about these entities:
- Government agencies and instrumentalities of government are described in handbook HUD- 4155.1 REV-5, paragraphs 1-13 A and B.
- FHA-approved nonprofits can be found, per each Homeownership Center jurisdiction, at: http://www.hud.gov/offices/hsg/sfh/np/np_hoc.cfm
How the secondary financing works:
- The tax credit advance, when combined with the FHA-insured first mortgage may not result in cash back to the borrower. The second lien may not exceed the total needed for the down payment, closing costs and prepaid expenses.
- The tax credit advance must provide that if the borrower does not repay the amount borrowed by the designated deadline, that principal and interest payments begin automatically.
- If payments on the tax credit advance are required, they must be included in qualifying the borrower and, when combined with the first mortgage, cannot exceed the borrower’s reasonable ability to pay.
- If payments on the tax credit are deferred, the deferment must be for a minimum of 36 months in order for the payment to not be included in the qualifying ratios.
- The tax credit advance second mortgage must not provide for a balloon payment before ten years.
Entities that can offer the tax credit advance with short-term loans:
- Federal, state, and local governmental agencies and nonprofit instrumentalities of government, FHA-approved nonprofits, and FHA-approved mortgagees may provide short term or “bridge loans” secured only by the anticipated tax credit due the homebuyer as collateral.
How the short-term tax credit advance loan works:
- The amount that may be borrowed in this manner may not exceed the anticipated tax credit due the homebuyer based on the computations of form IRS 5405.
- Fees and charges for the tax credit advance loan are not to exceed a nominal amount necessary for preparing and administering the loan.
If you have any questions regarding this mortgagee letter, please call FHA’s Resource Center at
1-800-CALL-FHA (1-800-225-5342). Persons with hearing or speech impairments may access this
number via TDD/TTY by calling 1-877-TDD-2HUD (1-877-833-2483).
American Recovery/Reinvestment Act of 2008
April 23, 2009 by Jim Bigelow · Leave a Comment
American Recovery/Reinvestment Act of 2008
First time home buyers purchasing any kind of home, new or resale are eligible for the tax credit. To qualify a home purchase must occur on or after January 1, 2009 and December 2009. The purchase date is when closing occurs, and the title to the property transfers to the new home owner.
For married tax payers, this law test the home ownership of the buyer and his/her spouse. For example: if you have not owned a home in the last three years, but your spouse owned a principal residence, neither you or your spouse qualifies for the tax credit.
However, unmarried joint purchasers can allocate the credit amount to any buyer who qualifies as a first time home buyer.
Ownership of a vacation home or rental property does not qualify as a first time home buyer.
The tax credit is equal to 10 percent of the purchase price up to a maximum of $8,000 dollars.
The income limits for single tax payers is $75,000 and the limit for married tax payers is $150,000 filing a joint return.
This tax credit does not have to be repaid. You claim the tax credit on your Federal Income Tax return. Home buyers should complete IRS Form 5405 to determine their tax credit amount, and claim this amount on line 69 of their 1040 income tax return. No other forms or applications are required, and no approval is necessary.
Any home that will be used as a principal residence will qualify for the credit. The tax credit is refundable, which involves the government sending the tax payer a check for a portion or maybe all of the refundable tax credit.
For qualified veterans 100 percent financing is available through VA Guaranteed Loan Program. Veterans with 100 percent disabilities, certified by the Veterans Administration as service connected are eligible for property exempt status in the State of Oklahoma.
As a military retiree, dedicated to the military personnel and their families, I urge you to contact Coleman White@Jimbigelow.com for all your real estate needs.
Coleman White 918-760-1317
coleman@jimbigelow.com www.jimbigelow.com
Jim Bigelow Bigelow Group Realtors 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
Oklahoma Tax Exemption
April 9, 2009 by Jim Bigelow · Leave a Comment
Oklahoma Tax Exemption
Due to current housing market trends it is necessary and informative for all qualified veterans and some surviving spouses to know that the State of Oklahoma is unique in that it is the only State that offers tax exemptions for certain classes of disabled veterans and some surviving spouses. Please review the article dated January 22, 2009. Section 9 of Oklahoma House Bill 154.7/1131
Would you believe Oklahoma is the only State that offers Tax Exempt Status to veterans with 100% disabilities?
This program benefits nearly 9,600 Oklahoma Veterans who have sacrificed their lives and health for this Country. These veterans are exempt from all sales tax which includes: City, County, and State that shall not exceed 25,000 per year, per individual. Americans are united in their belief that Congress and the President have a responsibility to make sure that veterans receive their benefits after service. This exemption is the latest attempt from Oklahoma to accommodate those who have sacrificed for our nation. This tax exemption is the least that any State can offer to those men and women who have given their lives and time.
Oklahoma should be the catalyst for this nation who owes their very existence to men and women veterans that have served their country with honor and valor in times of war and peace.
House Bill 1131 allows surviving spouses of veterans with a 100% service connected disability to keep the Veterans Sales Tax Exemption.
As a retired Viet-Nam Veteran, I can truly say that spouses of disabled veterans endure severe hardships when their love one’s die in defense of our nation. The freedom Americans enjoy should not die with the warriors; it must extend to the surviving spouses.
Again Oklahoma leads the nation with new household personal property tax exemption that is offered to 100% service connected veterans or their surviving spouses.
Our service members returning from the mid-east and their devoted families relocating or returning to Oklahoma are also entitled to 100% motor vehicle tax exemption, 100% disable veteran property tax exemption, Oklahoma tuition aid grant, Oklahoma National Guard Tuition Waiver, and many other benefits that are inclusive to Oklahoma.
In today’s world, we welcome your move to a State that honors our veterans.
As a military retiree, dedicated to the military personnel and their families, I urge you to contact Coleman White@Jimbigelow.com for all your real estate needs.
Coleman White 918-760-1317
coleman@jimbigelow.com www.jimbigelow.com
Jim Bigelow 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
Thinking About Buying Your First Home?
March 20, 2009 by Jim Bigelow · Leave a Comment
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Thinking About Buying Your First Home? |
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How long you plan to live in the home. The length of time that it will take to cover those costs depends on various economic factors in the area of the home. Most parts of the country have an average of 5% appreciation per year. In this case, you should plan to stay in your home at least 3-4 years to cover buying and selling costs. If the area you buy your home in experiences an economic up turn, the length of the time to cover these costs could be shortened, and the opposite is also true. How long the home will meet your needs. Your financial health – your credit and home affordability. Some say that you should refrain from borrowing as much as you qualify for because it is wiser not to stretch your financial boundaries. The other school of thought says you should stretch to buy as much home as you can afford, because with regular pay raises and increased earning potential, the big payment today will seem like less of a payment tomorrow. This is a decision only you can make. Are you in a position where you expect to make more money soon? Would you rather be conservative and fairly certain that you can make your payment without stretching financially? Make sure that whatever you do, it’s within your comfort zone. To determine how much home you can afford, talk to a lender or go online and use a “home affordability” calculator. Good calculators will give you a range of what you may qualify for. Then call a lender. While some may say that the “28/36″ rule applies, in today’s home mortgage market, lenders are making loans customized to a particular person’s situation. The “28/36″ rule means that your monthly housing costs can’t exceed 28 percent of your income and your total debt load can’t exceed 36 percent of your total monthly income. Depending on your assets, credit history, job potential and other factors, lenders can push the ratios up to 40-60% or higher. While we’re not advocating you purchase a home utilizing the higher ratios, its important for you to know your options. Where the money for the transaction will come from. The ongoing costs of home ownership. If you are still unsure if you should buy a home after making these considerations, you may want to consult with an accountant or financial planner to help you assess how a home purchase fits into your overall financial goals. |
Jim Bigelow 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
Homebuyer tax credit for 2009:
March 2, 2009 by Jim Bigelow · Leave a Comment
Homebuyer tax credit for 2009:
Last week I presented a shorter version of the points of the tax credit…after many phone calls, here is some more detail for you:
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.
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.
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.
Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.
Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.
Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.
8. 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.
9. 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.
10. 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.
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).
12. 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.
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.
In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.
14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.
15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
No. You can claim only one.
16. I am not a U.S. citizen. Can I claim the tax credit?
Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of “nonresident alien” in IRS Publication 519.
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.
18. 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.
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.
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.
21. 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.
Source: National Association of Homebuilders NAHB website
Link: http://www.federalhousingtaxcredit.com/2009/faq.php#1
Disclaimer – This information is for general purposes only and you should seek professionals in buying a home. The federal tax credit or other tax benefits information should be reviewed with your accountant or other professionals. The information is presented with no guarantee of the total or correct information on the subject
Steve Bell
Mortgage Consultant
Capital Mortgage Corporation
9014 S Yale Avenue
Tulsa, OK 74137
918-633-8909 Cell
918-481-8810 Office
918-481-8832 Fax
Jim Bigelow 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Do You Know What Your Home is Worth?
February 24, 2009 by Jim Bigelow · Leave a Comment
Do You know what your home is worth?
Do you Know why you should know what your home is work?
If not here are the answers to both questions.
Here’s one I will bet you have never checked on – are you being over taxed on your property. Did you know if the county over evaluates you homes worth you can challenge it and get your property taxes reduced.
If you do not know what your home is really worth – - How do you know if you are properly insured encase a disaster strikes like a fire, interior Waterline break, Tornado, hail storm or anything else.
It is free and easy to check on what your home is worth Just call me I will be happy to do a Competitive Market analysis on your home – Knowing you are not even thinking of selling. I think this is part of my professional service and community responsibility. Who knows you may appreciate it enough to refer me to someone that is ready to buy or sell a home.
John Buchanan Jr. 918-693-8820
John.buchanan@countryfinacial.com
Jim Bigelow 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
Stimulus Package – Tax Credit
February 18, 2009 by Jim Bigelow · Leave a Comment
Stimulus Package – Tax Credit
As you probably know, the House and Senate passed the stimulus package known as the “American Recovery and Reinvestment Act of 2009″ and now it just awaits the President’s signature.
One of the key provisions was a tax credit for 1st time homebuyers – here is what we know, further details or requirements may follow:
*1st time homebuyers only (must not have owned home as principal residence in 3 years prior to purchase date)
*Credit up to $8,000 (up to 10% of purchase price)
*Credit is “refundable,” meaning if your tax liability is less than the credit, you get money back.
*Credit does not have to be paid back if the buyer stays in home 3 years. (if home is sold before 3 years, the credit is recaptured)
*Good for purchases from Jan, 1, 2009 to Nov. 30, 2009
*Eligible for single filers with $75,000 modified adjusted gross income or less ($150,000 for joint filers)…phases out after those amounts up to $95,000 for single filers and $170,000 for joint filers.
What does this mean to you? Buyers now have more money to purchase a home and make update or improvements to their home.
Call me today and let’s discuss how this helps you market and sell your home. You may reach me at (918)640-4657, Email me at Jim@jimbigelow.com or visit my website www.jimbigelow.com.
Jim Bigelow 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
$15,000 Tax Credit Bill
February 13, 2009 by Jim Bigelow · Leave a Comment
$15,000 Tax Credit Bill
Wednesday February 4, 2009 the United States Senate unanimously approved an amendment to the economic stimulus bill that gives a $15,000 tax CREDIT to ANYONE who buys a home in the next year.
This is NOT law yet, Just Senate Approved Bill.
The amendment would provide a direct tax credit to ANY homebuyer who buys a home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchase must be made within one year of the legislation’s enactment, and the tax credit would not have to be repaid.
The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of principle residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.
RECAP:
The Amendment:
1. Makes the tax credit $15,000 or 10% of purchase price whichever is less instead of $7,500
2. Makes the tax credit for ALL buyers, not just first time buyers.
3. Eliminates income limits.
4. Extends the tax credit deadline for buying a home to one year from date bill is passed.
5. Remains only for primary owner occupied residences.
6. The tax credit is NOT REFUNDABLE, meaning a buyer will not receive a “refund” check from the IRS.
The credit, however can be claimed over two years, so buyers whose tax liability is less than $15,000 would have two years to capture the credit.
This amendment favors taxpayers in higher income brackets and should significantly boost sales of higher priced properties.
Remember at the time of this writing this is only a Senate approved bill.
Jim Bigelow 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
Helpful Websites
February 8, 2009 by Jim Bigelow · Leave a Comment
Helpful Websites
General: www.seniors.com
US Census: www.census.gov
Partnerships:
Client Assurance: www.squaretrade.com/sres
Moving for Seniors: www.movingforseniors.com
Home inspections: www.usinspect.com/sres
Retirement Housing: www.retirementhousingonline.com
Buyers Home Warranty: www.buyershomewarrenty.com
SAREC: www.seniorsrealestate.com
Long Term Care Planning—price quotes: www.itcq.net
Medicare Info-National Council on the Aging: www.noca.org
Talking with Parents about Health Coverage—The Kiaser Family: www.kff.org
Home Maintenance: www.theinspector-home.com/life
Kipler’s Your Family Records Organizer: www.kipler.com/organizer
The Five Wishes: www.agingwithdignity.org
AARP: www.aarp.org
National Association of Elder Law Attorneys: www.naela.org
Area agencies on aging: www.eldercare.gov
American Institute of Financing Gerontology: www.aifg.org
American Association or Daily Money Managers: www.aadmn.com
Reverse Mortgage: www.reversemortgage.org
Estate Planning Links: www.estateplanninglinks.com
National Center on Elder Abuse: www.elderabusecenter.org
National committee for prevention of elder abuse: www.preventelderabuse.org
Help Victims: http://preventelderabuse.org/help/help.html
The Directory of Crime Victim Services: http://ovc.ncjrs.org/fiindvictimservices
American Psychological Assn.: www.apa.org/pi/aging/eldabuse.html
Oklahoma: 1-800-522-3511
Jim Bigelow 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
Selling a Home in Tulsa, Oklahoma
February 7, 2009 by Jim Bigelow · Leave a Comment
Selling a Home in Tulsa, Oklahoma
Please contact me if you have any questions about selling your Tulsa home. Below, select desired reports and complete the form provided. |
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Common Selling Mistakes |
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Selling Your Home |
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Surviving the Sale |
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The Right Selling Price |
Jim Bigelow 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
New GI Bill Can Help You Earn a College Degree
February 5, 2009 by Jim Bigelow · Leave a Comment
New GI Bill Can Help You Earn a College Degree
Your father and grandfather may have used the GI Bill to pay for the college education that ultimately helped them provide for their families. You can too, thanks to a new GI Bill that provides the most comprehensive education benefits package since the original legislation was signed into law 64 years ago.
To find out more about pursuing your education, visit Military.com
Under the post Sept. 11, 2001 bill, you can:
* Receive up to 100 percent tuition if you’ve served more than 36 months of active duty after Sept. 11, 2001. Tuition percentages vary based on length of service, but the minimum you can receive is 40 percent for 90 consecutive days of active-duty service. Check out the tuition table at Military.com
* Get a monthly stipend for housing expenses if you are enrolled full-time or three-quarters time in a traditional college program. The average monthly stipend is about $1,100.
* Receive $1,000 per year towards books and supplies.
You are eligible for educational benefits if you:
* Served as an active-duty member in any Armed Forces branch for more than 90 consecutive days since Sept. 11, 2001.
* Are a Reserve or Guard member who has been activated for more than 90 days since Sept. 11, 2001.
More than 1,800 schools across the country – both traditional brick-and-mortar and online institutions – work with the Department of Defense to provide veterans education through the GI Bill. You can pursue your education either through traditional, in-person enrollment or through distance learning. To get started finding the right school for you, go to Military.com
Copyright © 2008, ARAnet, Inc.
Jim Bigelow 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
Money & Finance
January 27, 2009 by Jim Bigelow · Leave a Comment
Money & Finance
These are just a few of the types of articals and information you will find on the Bigelow Group Website in addition to Real Estate and MLS Home search capabilities.
How To Handle a Cash Crunch
In the world of living paycheck to paycheck, unforeseen expenses create a very stressful situation. If you don’t have an emergency savings account, the alternatives of how to pay for these situations are limited. Here are a few options for you to pay for emergencies and to make solid but simple changes in how you manage your finances. More
What to do if You Can’t Pay the IRS
Are you one of the millions of frustrated taxpayers who cannot afford to pay their IRS tax debt? There are solutions for reducing or paying back your IRS liability. Professionals can help. More
Do You Qualify for Tuition Reimbursement?
Looking to finish a degree or seeking a new one to advance your career? If you are, you’re probably wondering how you’ll pay for your education. You may be surprised to find out you could qualify for financial aid, in the form of tuition reimbursement from your employer. More
Get Peace of Mind, Get Life Insurance
Life can be unpredictable. As you plan for the future, it’s a good idea to have all your financial bases covered. One thing that can provide some peace of mind: a life insurance policy. More
Economy Squeezing Your Insurance Budget? Think Term Life
In these shaky financial times, you know it’s more important than ever to protect your family’s solvency with life insurance. But these days, you don’t have a lot of money to spend on monthly premiums. Term life may be the solution. More
Top Tips for Purchasing Life Insurance
How to choose the right life insurance. More
Turn Your Phone Into a Virtual Office
Times have changed for small businesses. Previously, only big companies with large budgets could afford the tools to create a professional, established image. One of the most significant examples of this change is the offering of virtual phone systems with toll-free telephone numbers. More
Fund Your Business or Franchise with Your IRA
If you’ve ever had visions of being your own boss, but don’t think you can afford to be your own boss, now there’s a way to get your hands on the money that will allow you to live out your dream of business ownership. The best part — you probably already have the money in your possession. More
Use Auto Refinancing to Ease the Family Budget
With gas prices at an all-time high and no relief in site, families are finding it necessary to cut back their spending on other items in order to fill up the car’s tank. Consider refinancing your car. More
Managing Your Credit Card Debts
Consolidating debt into a single low-interest monthly payment has helped many people get back on the winning side of the credit card game and get a fresh start. One company that has helped many people out of debt and guided them into a positive financial future is Consolidated Credit Counseling Services who suggests you start by asking these questions… More
Jim Bigelow 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
How to Not Pay Too Much for Your Home
January 24, 2009 by Jim Bigelow · Leave a Comment
How to Not Pay Too Much for Your Home
Whether you are buying your first home, or your fifth, the process of buying a home is a detailed, time-consuming venture. At the same time, it’s an emotional period laden with difficult choices. You want to ensure that the home you purchase meets your family’s needs now, and in the future.
Each of these decisions often involves money. When you consider all that money represents, you’ll want to ensure that you don’t pay too much. This article helps you become a savvy buyer, by pointing out some of the pitfalls inherent in the home-buying process. These include such things as knowing what you want before you begin shopping, taking your time to shop, choosing the right realtor, and remaining objective while viewing potential homes. With this information, you’ll be closer to finding your ideal home.
1. Before you shop, develop a needs vs. wants list
Everyone has a picture of an ideal home. This would include all the features you not only need, but have long desired. However, when it comes time to buying a home, the desires cost more. While it’s nice to think about having a beautifully landscaped backyard, or a solarium, perhaps even some built-in appliances, these are usually considered luxury items, which can add considerably to the price of your home.
That’s why it’s a good idea to develop a needs and wants lists. With this list, begin with items you really need like adequate space, garage and number of bedrooms. For most people, basic needs should be considered first. After that, you could consider additional desires, if you can manage these benefits financially.
With such a list in your hands, you’re less likely to be caught up in the excitement of the pursuit. You’ll have a good idea of what you want, within you price range, and if you can afford those additional items.
2, Get pre-approved prior to shopping
Visit your financial or lending institution prior to home buying. Quickly, you’ll know the amount of mortgage you’ll receive. Be sure to get a mortgage commitment in writing. Most importantly, you’ll tell sellers that you are a serious prospect. Depending upon market conditions, a seller may lean towards an unconditional offer. You’ll have less negotiating power if you have to wait for mortgage approval.
Banks and financial institutions have developed many programs especially for home buyers, be that first-time buyers or those with equity in their homes. When you review your needs and objectives with a lending officer, you’ll be one step closer to purchasing your home.
Jim Bigelow 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
Oklahoma Disability Exemption
January 22, 2009 by Coleman White · 1 Comment
Re: Section 9 of Oklahoma House bill 154.7/1131
Would you believe Oklahoma is the only State that offers Tax Exempt Status to veterans with 100% disabilities?
This program benefits nearly 9,600 Oklahoma Veterans who have sacrificed their lives and health for this Country. These veterans are exempt from all sales tax which includes: City, County, and State that shall not exceed 25,000 per year, per individual. Americans are united in their belief that Congress and the President have a responsibility to make sure that veterans receive their benefits after service. This exemption is the latest attempt from Oklahoma to accommodate those who have sacrificed for our nation. This tax exemption is the least that any State can offer to those men and women who have given their lives and time.
Oklahoma should be the catalyst for this nation who owes their very existence to men and women veterans that have served their country with honor and valor in times of war and peace.
House Bill 1131 allows surviving spouses of veterans with a 100% service connected disability to keep the Veterans Sales Tax Exemption.
As a retired Viet-Nam Veteran, I can truly say that spouses of disabled veterans endure severe hardships when their love one’s die in defense of our nation. The freedom Americans enjoy should not die with the warriors; it must extend to the surviving spouses.
Again Oklahoma leads the nation with new household personal property tax exemption that is offered to 100% service connected veterans or their surviving spouses.
Our service members returning from the mid-east and their devoted families relocating or returning to Oklahoma are also entitled to 100% motor vehicle tax exemption, 100% disable veteran property tax exemption, Oklahoma tuition aid grant, Oklahoma National Guard Tuition Waiver, and many other benefits that are inclusive to Oklahoma.
In today’s world, we welcome your move to a State that honors our veterans.
If we can ease your transition in any way please contact Coleman White at JimBigelow.com
Understanding Capital Gains in Real Estate
January 21, 2009 by Jim Bigelow · Leave a Comment
Understanding Capital Gains in Real Estate
When you sell a stock, you owe taxes on your gain — the difference between what you paid for the stock and what you sold it for. The same holds true when selling a home (or a second home), but there are some special considerations.
How to Calculate Gain
In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate, follow these steps:
1. Purchase price: _______________________
The purchase price of the home is the sale price, not the amount of money you actually contributed at closing.
2. Total adjustments: _______________________
To calculate this, add the following:
• Cost of the purchase — including transfer fees, attorney fees, and inspections, but not points you paid on your mortgage.
• Cost of sale — including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale.
• Cost of improvements — including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.
3. Your home’s adjusted cost basis: _______________________
The total of your purchase price and adjustments is the adjusted cost basis of your home.
4. Your capital gain: _______________________
Subtract the adjusted cost basis from the amount your home sells for to get your capital gain.
A Special Real Estate Exemption for Capital Gains
Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:
• You have lived in the home as your principal residence for two out of the last five years.
• You have not sold or exchanged another home during the two years preceding the sale.
• You meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.
Jim Bigelow 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
A $7500 “Gift”
December 20, 2008 by Jim Bigelow · Leave a Comment
A $7500 “Gift”
Among the programs already instituted by the federal government to help the national housing slump is the $7500 tax credit available to first time homebuyers. Designed to encourage activity at the base level of the housing market, this program is available not just to anymore buying their first home, but also to anyone who has not owned a home for the past three years. There are income limits of $150,000 on a joint return, but a large number of people are eligible.
Buyers who qualify can receive an immediate $7500 as a credit against their 2008 taxes. The $7500 can be used for any purpose including down payment, closing cost, home improvements, etc. As the program now stands, buyers are required to repay the $7500 credit at the rate of $500 per year for 15 years. However, the mortgage interest deduction should more than offset the additional taxes.
If you know of anyone who has not owned a home for at least three years and would like to take advantage of this tremendous opportunity, have them contact Jim Bigelow at 918-640-4657 or Jim@jimbigelow.com as soon as possible. With the high cost of rent, the current low mortgage rates, the affordability of homes in this market, and this $7500 “GIFT”, it just makes sense for those eligible to buy a home.
Jim Bigelow 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
Preparing for Homeownership
December 17, 2008 by Jim Bigelow · 1 Comment
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Preparing for Homeownership |
1. Decide what you can afford.
2. Develop your home wish list.
3. Select where you want to live
4. Start saving.
5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.
6. Determine your mortgage qualifications.
7. Get preapproved. Organize all the documentation a lender will need to preapproved you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.
8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.
9. Calculate the costs of homeownership.
10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process.
Jim Bigelow 918-640-4657
www.jimbigelow.com jim@jimbigelow.com
Coldwell Banker Select
