First Time Home Buyer Tax Credit Extended with More

On November 9th, 2009, President Barack Obama signed on approving the First Time Home Buyer Tax Credit of up to $8,000 until April 30th, 2010. Anyone who has not owned a house within 3 years of the purchase is eligible. Existing homeowners that have lived in their home for the past 5 consecutive years and are purchasing another home for their principal residence may also be eligible for a $6,500 Credit. Homes purchased after November 6th, 2009 and before April 30th, 2010 will be eligible as long as closings occur before July 1st, 2010. Buyers must be 18 years of age in order to collect. With Mortgage rates at a historical low, combined with the supply of homes for sale, there has never been a better time to be a Buyer. The tax credit is just icing on the cake. If you are going to buy a house in the next year, Don't miss out on this opportunity!!

CONSIDERING INVESTING IN REAL ESTATE? USE THE IRS "1031 TAX DEFERRED EXCHANGE"

OPTIONA 1031 is a tax deferred method of purchasing an investment property, selling it, and purchasing another property of equal or greater value and deferring the tax gain. It's a simple strategy for selling an investment property and acquiring anther property within a specific time frame. The logistics and process is similar to a normal sale/buy transaction. The advantage is the seller (investor) is allowed to defer the "capital gains" on a sale to a later date. When reading the word "exchange" which is attached to the 1031 a person would think that one would exchange a property for another property owned by a person who had the same desire. It would be difficult for an investor to find a person who owns a property that would be desirable to exchange for both parties (buyer and seller). To make it simple, the IRS allows an investor to sell the property to any buyer with all of the seller's proceeds (monies) being held in escrow by an authorized intermediary (title company) and allowing the investor (seller) to name one or more properties within 45 days of the closing of the property being deferred and 180 days to close on the new property.

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