Foreclosures are still rising, unemployment numbers are up, and yet banks are posting profits. How do banks make money? Don't foreclosures hurt banks? Do they lose money? How are banks making money in the struggling economy? Where do the banks profits come from?
To qualify for the $8000 first-time home buyer tax credit, you must live in the house as your primary residence for at lease three years after buying the house. If you are buying an investment property, you will not qualify for the $8000 first-time home buyer tax credit or the $6500 repeat or trade-up buyer tax credit. Even if you plan on living in your home later, to qualify for the home buyer tax credits now, you must live in the house now.
It’s the last show of the year today, and so with only four business days left in the year, it’s the Special Tax episode of the Ilyce Glink Show. Ilyce invited her friends from the Georgia Association of Enrolled Agents, including: Merry Brodie, enrolled agent and CPA, enrolled agent Bill Nemeth and Chet Burgess, enrolled agent and President of the Association, in to discuss tax changes and make April 15 easier for all our listeners. Ilyce wraps up 2009 by reminding everyone to take advantage of early bird ticket specials for her March 27, 2010 event How to Invest in 2010. Listen to the full show here, or download from iTunes. Check Ilyce's blog for more show notes and helpful links.
Want to know how to get federal tax credits for installing energy efficient equipment? Make sure you qualify for the tax incentives by researching the products and find out how much of a tax credit you will qualify for. The tax credit for home replacement windows in 2009 and 2010 must meet certain energy performance criteria. You can also qualify for tax incentives by installing energy efficient heat pumps, air conditioners, windows, roofs and more. Make sure you are eligible for the tax incentive by keeping documentation for the energy efficient products and for the tax credit.
Ilyce Glink Show Notes - December 27, 2009. Today is the last show day of the year, so it's a special tax show. We have Merry Brodie, Bill Nemeth, and Chet Burgess from the Georgia Association of Enrolled Agents answering your tax questions. Merry, Bill and Chet each complete hundreds of tax returns each year, and Merry's company completes 10,000 tax returns each tax year. Don't forget to sign up for my free weekly newsletter. THE TICKET WINDOW IS OPEN FOR OUR NEXT EVENT: HOW TO INVEST IN 2010. Sign up today at the super-low early bird rate. FREE BOOKS and the EBOOK SPECIAL.
is it possible to refinance investment property? In the current tough real estate market it has become even more difficult to refinance investment property. You need enough equity in the investment property to convince any lender to let you refinance. Most will require at least 25 percent in equity, but some lenders will require 40 or 50 percent in equity to refinance an investment property.
Make a New Year's Resolution to clean up your personal finances. Stick to a budget, live within your means, and put away savings every month. Below are the top three financial new year's resolutions. Make 2010 the year to stick to your financial new year's resolutions.
How long are you required to keep your tax records? The IRS only requires you to hold onto your tax records for seven years. A lender might want to see your tax records from the last few years, but they should not require anything further back than that. If a lender wants to see older tax records than the IRS requires, find out what they are looking for, or consider working with another lender.
A 3-2-1 mortgage buydown will reduce the interest you pay on your mortgage. A mortgage buydown is used by some companies as an incentive for work relocation and to help with changes in cost of living. A 3-2-1 mortgage buydown can help make your expenses more manageable, but should not be used as a tool for profiting from real estate. You won't be able to time real estate exactly and a 3-2-1 mortgage buydown will probably only be helpful if you're going to be staying in the house for several years.
IRS: 401k Hardship Withdrawal Information. The IRS recently updated its 401k Hardship Withdrawal information. This information is for anyone who is out of work, had extremely high medical expenses or needed, for some other reason, to make a withdrawal from a 401(k) plan. If you qualify for a hardship withdrawal, you will not owe penalties on the withdrawal. You will still owe taxes to the IRS. For more details, consult a qualified tax planner or preparer.
