Tax Credit

Free electric cars shows what happens when legislation goes wrong

Tom Barlow Dec 22nd 2009 @ 3:00PM EST Filed Under: Transportation, Taxes-tax credits

You may have seen reports about how you can get a free $6,500 electric runabout thanks to the government's energy tax credit for what they call Neighborhood Electric Vehicles. The first time you encounter a golf cart merrily clogging traffic as it putts down the street 10 mph below the speed limit, though, you might not think so highly of this "bargain".

The vehicle in question here is Drive Electric's NEV-48 EV, a golf-cart-like, open-sided, four-wheeled, two-seater with a top speed of 25 mph. The company claims that current legislation (which changes Jan. 1) will cover the entire purchase price of $6,496.53 (shipping and sales tax extra).

Continue reading Free electric cars shows what happens when legislation goes wrong

Home Depot, Obama and sexy: 3 terms not normally found together

Tom Kraeutler Dec 16th 2009 @ 12:30PM EST Filed Under: Sex Sells, Home, Real Estate, Recession, Taxes-tax credits

Adding an entertaining dimension to the appeal of energy-saving home improvements and building on the promise of new tax incentives for homeowners, President Barack Obama termed insulation "a sexy subject" during a Home Depot visit in Alexandria, Va., on Tuesday.

"Here's what's sexy about it. It saves money," Obama noted in comments aimed at encouraging Congress to pass incentives for homeowners who insulate and otherwise upgrade their homes to make them more energy efficient.

Continue reading Home Depot, Obama and sexy: 3 terms not normally found together

Surprise! There's no news on tax credits

Kelly Phillips Erb Nov 17th 2009 @ 2:30PM EST Filed Under: Tax, Taxes-tax credits

Headlines across the country are blasting that millions of taxpayers may owe come tax time because "the government was too generous with their new Making Work Pay tax credit," as the New York Daily News put it.

It sure makes for dramatic news coverage... only it's not quite right.

The government didn't make a mistake when calculating the Making Work Pay tax credit and this most definitely isn't something just hitting the radar of taxpayers. It just makes good headlines now.

The issue of too much withholding has been making news since the inception of the credit in early 2009. Yahoo even appeared to revamp an earlier version of the CNNMoney.com story released on this past Tuesday, titled "Stimulus surprise: 15 million people may owe taxes" from a piece released six months ago. Clicking on the link from the prior story, formerly here, now gives you a 404 error. Hmm.

Continue reading Surprise! There's no news on tax credits

Myth Buster: No jail time for uninsured

Lita Epstein Nov 16th 2009 @ 10:00AM EST Filed Under: Health, Taxes-tax credits, Insurance-health

You'll find numerous blogs out there threatening jail time for the uninsured, but don't believe them. This is just another scare tactic to prevent health insurance reform.

While it's true there are penalties for those who choose not to get insurance, that penalty is 2.5% of one's income and the penalties will be collected by the IRS. Jail time is not likely. In fact criminal prosecutions by the IRS are rare. Of 156 million individual tax returns filed in 2008, only 100 resulted in criminal prosecutions for those who willfully defrauded the system. The penalty will only impact those who are wealthy enough to pay for insurance and choose not to pay. The intent is that this penalty will be used to pay for the medical needs of those who choose not to get insurance.

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Home buyer tax credit extended & improved!

Ryan Minick Nov 12th 2009 @ 11:00AM EST Filed Under: Borrowing, Real Estate, Tax, Video, The2MortgageGuys, Mortgages, Taxes-advice, Taxes-tax credits

The first time home buyer tax credit has officially been extended. If you're an existing home owner you may also qualify for the tax credit if you're planning on buying a new house! Check out this week's episode of Show & Tell with The 2 Mortgage Guys and we'll fill you in with the "nuts & bolts" of this new program. You can also get the complete details by visiting federalhousingtaxcredit.com.

Ryan Minick and Steve DeLon are The 2 Mortgage Guys. Subscribe to their newsletter or visit them at www.The2MortgageGuys.com.

Looming tax credit deadline spurs return of real estate bidding wars

Troy McMullen Oct 29th 2009 @ 5:30PM EST Filed Under: Credit, Home, Real Estate, Mortgages, Taxes-tax credits

The deadline for first-time home buyers to take advantage of the government's $8,000 tax credit appears in line for an extension. But the popular tax break has already been fueling a phenomenon that many struggling real estate markets haven't experienced in years: bidding wars.

Lower-priced homes on the market in many once-beleaguered areas have seen a flood of offers, say real estate brokers from Boston to Portland, Ore. Though the original tax credit is good on homes sales completed by Nov. 30, because home deals can take months to complete, new buyers are rushing to close escrows so they don't miss out on the credit.

"It's a welcome change from the way things have been around here," says Carrie Novotny, a realtor in Edina, Minn., outside Minneapolis. She says a recent open house for a two-bedroom, Craftsman-style home listed at $213,000 drew several dozen prospective buyers and more than five serious bidders. The home eventually went into contract for $217,000, Novotny says. "It's been a bit crazy," she says. "People really want to nail down a sale to cash in on the tax break."

Continue reading Looming tax credit deadline spurs return of real estate bidding wars

My preschooler is now a homeowner, and other tales of fraud

Sarah Gilbert Oct 28th 2009 @ 12:30PM EST Filed Under: Borrowing, Home, Kids and Money, Ripoffs and Scams, Tax, Fraud, Mortgages, Taxes-tax credits

Homebuyers did not have to truly be first-timers in order to qualify for the "first time homebuyer" tax credit, expiring Nov. 30; they only had to meet the limitation of not having owned a primary residence for the past three years, with income limits of $75,000 for individuals and $150,000 for married taxpayers.

According to the Treasury Department, however, 4-year-olds (and other individuals incapable of legally signing a purchase agreement) don't count.

In an Internal Audit Report meant to assess the 2008 filings in anticipation of a surge in claims for the 2009 tax season, as many as 90,000 claims were determined to be potentially ineligible, and 528 of those were to homebuyers under 18.

The federal tax credit for first-time homebuyers is $8,000.

Continue reading My preschooler is now a homeowner, and other tales of fraud

Property tax exemptions you can learn from by example

Ryan Minick Oct 26th 2009 @ 2:00PM EST Filed Under: Home, Real Estate, Saving Money, Tax, Video, The2MortgageGuys, Mortgages, Taxes-tax credits, Taxes-tax deduction, Refinancing

If you live in Indiana and you're planning on buying or refinancing a home then you'll definitely want to file for you eligible property tax exemptions. And if you don't, then follow along and we'll explain some of the common exemptions as well as the impact it could make on your tax savings.

Ryan Minick and Steve DeLon are The 2 Mortgage Guys. Subscribe to their newsletter or visit them at www.The2MortgageGuys.com.

Clean up with green tax credits

Martha C. White Oct 12th 2009 @ 9:00AM EST Filed Under: Home, Green, Taxes-tax credits

While the $8,000 first-time homebuyer tax credit is scheduled to expire next month, there are ways that everyone - not just first-time buyers -- can collect thousands of dollars in tax credits by installing or upgrading eco-friendly elements to their homes.

This Wall Street Journal article details several different types of credits available this year and next year for eco-upgrades. For starters, there's a federal credit of up to $1,500 available for switching to energy-efficient doors, windows, air-conditioning, insulation, water heaters and roofing. The credit is good for 30% of the purchase price, up to the $1,500 cap if spread between this year and next year. It's only good for your primary home, so if you have a vacation home you planned to trick out, that still has to come out of your own pocket. The Department of Energy has a webpage with more details about the credit program.

Another, larger credit program, also administered by the Department of Energy, lets homeowners deduct up to 30% of the cost of fuel cells, solar cells or solar water heaters, wind energy and geothermal energy generators. These credits have no cap and are in place until 2016. Also, all but the fuel-cell credit can be used for non-primary residences.

Two caveats to be aware of, the Journal article cautions: The items for which homeowners file for a credit can only be used inside a house, so implements to heat a pool or hot tub don't qualify. Also, keep in mind that some of these credits just let you count the cost of the new items, not their installation. The details of which items qualify for installation credits are available on the Energy Department's website. There are also variations to the rules if you're building a new house as opposed to upgrading an existing one.

To consumers who are overwhelmed by the possibilities, the Journal article offers a bit of sound advice: Start small. Upgrading windows and insulation is almost always a good investment, even without the added incentive of the tax credit. These two relatively quick fixes can even be tackled by a relatively handy amateur.

Fast fixes for drafty windows

Tom Kraeutler Oct 3rd 2009 @ 9:00AM EST Filed Under: Home, Taxes-tax credits

October is Energy Awareness Month and if you are like most, you're about to get pretty "aware" of just how un-energy inefficient your home may be. As temperatures start to drop and heating systems kick on, receiving that first heating bill is likely to grab your attention pretty quick.

According to the U.S. Department of Energy, the typical home loses more than 25% of its heat through windows. So, here are a few ways to lock down energy loss from leaky windows before that first big bill show's up:

Test your windows
The first step towards sealing out drafty, inefficient windows is to figure out where the problems lie. Look for condensation inside the glass on double- or triple-glazed windows. This could indicate seal failure. If this is the case, you might need to replace the glass or the entire window.

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First-time home buyers face looming tax-credit deadline

David Schepp Sep 18th 2009 @ 5:00PM EST Filed Under: Home, Real Estate, Recession, Mortgages, Taxes-tax credits

Just as "cash for clunkers" boosted auto sales, another federal program introduced this year aimed at first-time home buyers is driving home sales and helping to salvage the nation's beleaguered residential real-estate market. And if you want to get in on the action -- up to $8,000 worth -- you'd better hurry, as the incentive is set to expire Nov. 30.

So far, 1.4 million Americans have taken advantage of the first-time home buyer provision, contained with the American Recovery and Reinvestment Act, according to the Internal Revenue Service. It gives those who have never owned a home or haven't owned one within the last three years a credit of 10% of the price of the home, up to an $8,000 maximum.

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Energy tax credits abound, but windows may be cheapest

Aaron Crowe Sep 1st 2009 @ 11:00AM EST Filed Under: Stimulate US, Green, Taxes-tax credits

While cashing a federal tax rebate check is the easiest way get some of the federal stimulus funds, probably the next easiest is to get a tax rebate for work you were going to do on your home anyway.

The American Recovery and Reinvestment Act of 2009 has plenty of energy provisions to save taxpayers money while helping to save the environment, but most look like they're expensive for consumers to afford.

There are tax credits for residential alternative energy equipment, such as solar hot water heaters, geothermal heat pumps and wind turbines. Ever get a quote for a wind turbine? They're not cheap. There are also tax credits for plug-in electric cars, which cost a lot of money, too.

Probably one of the best deals, at least in terms of tax credit for money spent, is getting back 30% of the cost of improvements by homeowners for energy savings, called the Residential Energy Property Credit. The credit applies to improvements such as adding insulation, energy-efficient exterior windows and energy-efficient heating and air-conditioning systems.

Continue reading Energy tax credits abound, but windows may be cheapest

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