Tax Credits for Energy Efficiency

Homeowners can now qualify for tax credits up to $1500. (in most cases) for home improvements made between Jan. 1, 2009- Dec. 31, 2010. Whether you are building a new home or renovating an existing one, there are ways to take advantage of this tax credit.

For existing homes, tax credits are available at 30% of the cost, up to $1500. in 2009 and 2010 for windows and doors, insulation, roofs, HVAC systems, water heaters (non solar) and biomass stoves. For existing new homes, tax credits are available at 30% of the cost, with no upper limit through 2016 for geothermal heat pumps, solr panels, solar water heaters, small wind energy systems and fuel cells.

For home improvements:

• must be 'placed in service" 1/1/2009 through 12/31/2010



• must be owner's primary residence



• must have a Manufacturer Certification statement to qualify



• for record keeping , save receipts and manufacturer certification statement.

For more information on how to qualify for and /or apply for these tax credits visit-

www.energystar.gov/taxcredits

Real Estate Update- Twin Cities

Low mortgage rates, affordable supply and the home buyer tax credit kept home sales moving in October.

There were 4,676 signed purchase agreements during the month, up 34.4 percent from a year ago—the 16th consecutive month of year-over-year increases in pending sales. The recent extension and expansion of the home-buyer tax credit should mean continued buyer movement into early 2010.

Traditional pending sales (excluding foreclosures and short sales) were up 55.0 percent from last October, a sure sign that demand is beginning to spill over into that segment.
The October median sales price of $169,000 is a slight dip from the prior month, but the dip is much less extreme than typical entering the fourth quarter. Compared to last October, it's a 6.1 percent decline—the lowest year-over-year decline in 24 months.

The median sales price of traditional homes in October was $193,500, down 13.2 percent from a year ago. Lender-mediated homes posted a October figure of $129,000, down 4.4 percent from a year ago.

Foreclosures are still selling much more frequently than short sales, bringing the months supply of foreclosures to 1.4, while short sales still have 13.2 months of supply. More information on these market segments is available with the October 2009 Update to Foreclosures and Short Sales in the Twin Cities.

Good news for sellers: Homes are selling quicker and sellers are receiving closer to their original asking price than they were a year ago. But the experience varies by price point. For example, activity in the upper-bracket price ranges is still pretty slow.

The lower and middle price brackets will probably see a lot of movement over the next nine months," said MAAR President-Elect, Brad Fisher. "If you're a buyer in those ranges, action is your best weapon

."

information provided by MAAR

Midwest Home Show

This coming weekend... November 13-15th, Friday, Saturday & Sunday.

Home Remoldeling, Design and Landscaping.

Friday 1-6, Saturday 11-6, Sunday 11-5

Minneapolis Convention Center

www.midwesthomeshow.com

Admission: Adults: $8.00, Children: $3.00---Buy one ticket at Cub Foods, get one free.

Stop by and see me at Rongitsch Homes Booth

Tax Credit Extension & Expansion is Approved!

BREAKING NEWS!
Tax Credit Extension & Expansion is Approved!

President Obama has approved a bill for the Housing Tax Credit Expansion and Extension. Here’s what it means:

The $8,000 First-Time Homebuyer Tax Credit is Extended!

· Now, qualified first-time home buyers would receive their $8000 tax credit if they sign a purchase contract by April 30, 2010 and close by June 30, 2010.
· The home purchased must be their primary residence
· Buyer cannot have owned a home during the past three years
· Tax credit is up to 10% of the home value (not to exceed $8,000)
· Annual income caps to qualify for the tax credit have increased ($125K for single filers / $225K for joint filers). Partial tax credit can be granted for incomes up to $145K for single filers / $245K for joint filers.
·

PLUS New $6,500 Tax Credit for Current Home Owners Purchasing a Primary Residence

· Eligible home buyers must have lived in their current home for 5 consecutive years of the past 8 years.
· The new home does not have to cost more than the old home.
· Eligible for homes with purchase agreements written by April 30, 2010 and that close between November 6, 2009 and June 30, 2010
· Annual income caps to qualify for the full tax credit ($125K for single filers / $225K for joint filers). Partial tax credit can be granted for incomes up to $145K for single filers / $245K for joint filers.

Changes Chart and FAQs from www.realtor.org (National Association of Realtors® website) are attached.

For any tax credit eligibility questions please contact your certified public accountant.