Detailed Information on Tax Credit

Here are details on the extension and expansion of the U.S. tax credit for homebuyers signed into law on November 6, 2009 by President Obama:

Deadline Extended Into 2010
The tax credit was originally to end November 30, 2009. It has now been extended into 2010. If you have a signed purchase agreement by April 30, and close the transaction before July 1, you’re eligible for the credit.

Most Other Buyers Now Eligible
First-time homebuyers are eligible for a credit of 10 percent of the price of the home, up to $8,000. (Married couples filing individually can receive $4,000 each.) You are considered a first-time buyer if you haven’t owned a principal home in the U.S. in the last three years.

The tax credit has also been expanded to buyers who have owned a home at some period during the last three years and used it as their principal residence for five consecutive years in the last eight. They can receive up to $6,500 - or $3,250 for couples filing as individuals.

No Repayment if You Stay in Home for Three Years
The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount of the credit will be recouped on the sale.

Caps on Income, Home Price
Individuals who earn up to $125,000, and couples who earn up to $225,000, are eligible for the full credit. Individuals who earn between $125,000 and $145,000 – and couples who earn between $225,000 and $245,000 - can receive a percentage of the full credit.

The maximum purchase price is $800,000. Any home selling for more than that makes the buyer ineligible for the credit.

Taking Advantage of the Credit
You can claim the credit on your 2009 or 2010 tax return. There are also programs in place to enable you to use the funds to help with the down payment.

Applying the Credit to Your 2009 Taxes
You will need to do three things to claim the credit on your 2009 tax return:

• Fill out the applicable IRS form to determine the amount of your available credit.
• Apply the credit when you file your 2009 tax return or an amended return.
• Attach documentation of purchase to your return or amended return.

If You Purchase in 2010
Buyers purchasing in 2010 will have the option to:

• Claim the credit on their 2009 return, even if the purchase is completed after December 31, 2009.
• File an amended return for 2009 if their purchase is completed after April 15, 2010.
• Claim the credit on their 2010 tax return.

Contribution to the Economy
National Association of REALTORS® economists estimate that the tax credit has contributed more than $22 billion to the economy, and that 2 million people will take advantage of it this year.

Did You Know…

An average of a quarter-million families have their homes ruined and their
lives disrupted each winter, all because of water pipes that freeze and
burst.
Recovering from frozen pipes is not as simple as calling a plumber. An
eighth-inch crack in a pipe can spew up to 250 gallons of water a day.
By taking a few simple precautions, you can save yourself the mess, money
and aggravation frozen pipes cause.


Before The Cold Hits:

Insulate pipes in your home’s crawl spaces and attic. These exposed pipes
are most susceptible to freezing. Remember - the more insulation you use,
the better protected your pipes will be.
Heat tape or thermostatically-controlled heat cables can be used to wrap
pipes. Be sure to use products approved by an independent testing
organization, such as Underwriters Laboratories Inc., and only for the use
intended (exterior or interior). Closely follow all manufacturers’
installation and operation instructions.
Seal leaks that allow cold air inside near where pipes are located. Look for
air leaks around electrical wiring, dryer vents and pipes. Use caulk or
insulation to keep the cold out and the heat in. With severe cold, even a
tiny opening can let in enough cold air to cause a pipe to freeze.
Disconnect garden hoses and, if practical, use an indoor valve to shut off
and drain water from pipes leading to outside faucets. This reduces the
chance of freezing in the short span of pipe just inside the house.

When The Mercury Drops:

A trickle of hot and cold water might be all it takes to keep your pipes
from freezing. Let warm water drip overnight, preferably from a faucet on an
outside wall.
Open cabinet doors to allow heat to get to uninsulated pipes under sinks and
appliances near exterior walls.

If Your Pipes Freeze:

If a resident has no water and thinks a pipe may be frozen, follow the steps listed below:

• Call the Water Department’s emergency number at 817-FW-24-HRS (817-392-4477) so a representative can check to see if your meter is frozen.
• If the meter is not frozen, the private plumbing is probably frozen at the point where the pipe goes under the house. Check there first.
• If a pipe is frozen, it is safest to call a plumber to handle the problem. The pipe may be cracked and will burst when thawed. If an electrical appliance is used to heat the pipe, spraying water from a burst pipe could get onto it, creating the risk of electrocution.
• If you decide to thaw the pipe yourself, apply heat slowly with a light bulb, a hair dryer set on low, exhaust from a vacuum cleaner or heat tape. Use your hands to find the coldest point on the pipe, which is usually where the ice is. Keep the heat moving in that general area, but never concentrate heat on one spot.
• If someone suspects a water main is broken, immediately contact the Water Department’s emergency number at 817-FW-24-HRS (817-392-4477) so it can be repaired as soon as possible. Signs of a broken water main are water running down the street and buckled pavement. Don’t assume your neighbor called..

If you need a good plumber, please let us know and we will be happy to refer
one to you.

Stay safe and warm!

Tracey, Cassy, Sophie and Kate

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