BOSTON HOMES BLOG

December data are down

— By: Marilyn Jackson

December home sales data reflect a slow market with soft prices, according to Timothy M. Warren Jr., CEO of the Warren Group, which publishes Banker & Tradesman. Its report was released Jan. 24. Home sales of single-family homes across the state dropped 5 percent in December in a year-over-year comparison, while condo sales dropped 15.75 [...]

City collects $9.4 million from non-profits

— By: Marilyn Jackson

The city has collected $9.4 million from non-profit, tax-exempt organizations for the first half of fiscal year 2012, a 24 percent increase from fiscal year 2011, Mayor Thomas M. Menino stated in a press release Friday. The city had requested $10.8 million. Guidelines for the PILOT or payment in lieu of taxes program were revised [...]

— By: Linda Goodspeed

Homeowners can claim some tax credits

 

Q:

Are there any new tax credits or writeoffs for homeowners this year? I got laid off last month and am starting to think about my taxes and what kinds of credits I might be able to use.

A:

The biggest news on the tax front for homeowners is the first-time homebuyer tax credit. The credit, worth up to a maximum of $8,000, was scheduled to expire Nov. 30, 2009. Instead, Congress extended the credit until April 30, 2010.

To qualify, the homebuyer must be a first-timer (not owned a primary residence in the last three years), and must have the home under agreement by April 30, 2010, and close on it by June 30, 2010.

The home must be a primary residence. Vacation properties are not eligible. If you bought the home in 2009, you can apply the tax credit to your ’08 tax return and get the funds back now, rather than waiting to file your ’09 return.

Buyers who close in 2010 can apply the tax credit to either their ’09 or ’10 return.

At the same time Congress extended the first-time homebuyer tax credit, it also expanded the credit to existing homeowners who are buying replacement homes. The replacement credit is worth a maximum of $6,500. The buyer must have lived in the home being sold for at least the last five years and must have the replacement home under agreement by April 30, 2010, and close on it by June 30, 2010.

The home must be a primary residence. In addition to claiming the $6,500 tax credit, the homeowner can also exclude from capital gains taxes up to $500,000 worth of profit on the home being sold.

Congress also extended the home energy tax credit available to homeowners. This tax credit first became available in 2007. It was eliminated in 2008, but reappeared this year. It, too, has been extended into 2010.

The tax credit is worth a maximum of $1,500 based on 30 percent of the qualifying energy improvement. For example, if you spent $5,000 to replace the windows in your home with new energy efficient ones, you would be able to take the full $1,500 tax credit.

 

If you spent only $3,000 to replace the windows, you would be able to take a $900 tax credit. Some alternative energy improvements, such as installing a solar hot water heater or wind turbine, qualify for a tax credit of 30 percent of the cost of the improvement with no cap.

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