Great News on Tax Credit

Thank you to one of our clients for passing along this article on the tax credit extension from www.thehill.com


Sens announce deal to extend and expand homebuyer tax credit
By Walter Alarkon - 10/29/09 06:44 PM ET

A bipartisan group of senators announced a deal Thursday to extend the first-time homebuyer's tax credit set to expire within weeks.
Under the agreement struck by Sens. Chris Dodd (D-Conn.) and Johnny Isakson (R-Ga.), the credit will last until the end of April and can be applied to homes worth up to $800,000. Dodd and Isakson said that as many as 70 percent of Americans will be eligible for it.

The home credit's backers, which include Senate Majority Leader Harry Reid (D-Nev.), have said that it can help the economy recover and has already led to the jump in home sales seen around the country in recent months.

Isakson called the provision a "once-in-a-lifetime" credit that can "bring the housing market back to some sense of vitality and values."

Though the previous provision could only be used by individuals making up to $75,000 and couples making up to $150,000, the extended credit can be used by individuals with incomes of up to $125,000 and couples of up to $225,000.

The deal also provides a new $6,500 credit to homebuyers looking to move out of their current homes into more expensive ones.

The first-time homebuyer's credit was initially passed as part of the stimulus in February and was set to expire at the end of next month.

Isakson and Dodd said Democratic leaders plan to attach the proposed extension to legislation that also prolongs expiring unemployment benefits by at least 14 weeks and a tax provision known as the net operating loss carryback, which allows small businesses to write-off losses incurred during the recession.

The unemployment benefits and the carryback tax provision were both parts of the $787 billion stimulus. The package of stimulus extenders is likely to hit the Senate floor next week. The House has passed a 13-week extension of the unemployment insurance but it has yet to approve home credit and carryback extensions.

The homebuyer credit extension will cost $10.2 billion. Senate Finance Chairman Max Baucus (D-Mont.) said that the cost will be offset by delaying a tax break for U.S.-based international corporations that was scheduled to start in 2010. Instead, the new tax provision will begin in 2017, Baucus said.

The Obama administration, which had withheld support for the credit as lawmakers were negotiating a deal, expressed support for it Thursday.

"This credit has brought new families into the housing market and contributed to three consecutive months of rising home prices nationwide," said Treasury Secretary Timothy Geithner and Housing and Urban Development Secretary Shaun Donovan in a statement. They also urged lawmakers to include provisions to prevent tax fraud.

The Senate deal does provide the Internal Revenue Service with the ability to review a home purchase as it's being processed instead of waiting until its completion.

Though lawmakers have touted it as a successful stimulus provision, economists have said that the credit isn't doing that much to boost the economy. Most of the people -- approximately 80 percent -- who have used it would have bought a home without it, said Dean Baker, co-director of the Center for Economic and Policy Research.

"This means that we just gave these people $8,000 for nothing," Baker said.

We always love compliments!

Thank you to one of our clients for sending us these kind words!


"Thanks again for all your hard work… I am very impressed by your office and all the folks I’ve come into contact with…

And we are relieved that we are working with you….

Until Brandon recommended you, I was on the verge of going mad because we could not find a Realtor who took our needs and interests to heart..

As Brandon says of you and your firm, “They’re good people.”

Indeed you all are.."

Thank you!!!

City of Alexandria has been awarded $7.7 million for affordable homeownership programs

From the Alexandria Office of Housing:

The City of Alexandria has been awarded $7.7 million from the Virginia
Housing Development Authority (VHDA) to help make homeownership more
affordable for households with members who live or work in the City.
This funding is being provided through VHDA’s Sponsoring Partnerships
and Revitalizing Communities (SPARC) Program.

The funding will be used in conjunction with the City’s Homeownership
Assistance Program, which assists lower income households with annual
incomes of up to $82,160 for a family of four, and Moderate Income
Homeownership Program, which assists households with incomes of up to
$102,700 for a family of four. SPARC funding will be enhanced with
$936,955 in federal funds from the Neighborhood Stabilization Program,
which targets communities that have been most affected by
foreclosures.

“These funds provide an important complement to the City’s home
purchase assistance programs,” said Alexandria Mayor William Euille.
“The City has a long history of helping first-time homebuyers and we
are dedicated to making homeownership both achievable and affordable
for lower and moderate income City residents and workers.”

Individuals who wish to apply for assistance through the City’s
homeownership programs must be first-time homebuyers, must have lived
or worked in the City during the most recent six month period, and
must purchase a home located within the City of Alexandria. All funds
are limited, so interested households are encouraged to begin the
process by registering to participate in a mandatory, free
homeownership training offered through the City’s Office of Housing.
For more information, call the City of Alexandria’s Office of Housing
at 703.746.4990, TDD: 703.838.5056.

For more information, contact Shane Cochran at 703.746.4990 or
Shane.Cochran@alexandriava.gov

As always, please feel free to contact us here at The Goodhart Group if you have any questions or are in need of any assistance! We are always happy to help.

Enjoy your weekends and check out our website for this weekends open houses.

Alexandria Tops the List in Charitable Giving!

We just received word that the City of Alexandria has topped the list for online charitable giving! Below is an excerpt from Volunteer Alexandria:

We at Volunteer Alexandria are well aware of how generous our fellow Alexandrians are and were excited to see our city top the list in online charitable giving! Convio, a company that provides support for charities in processing online donations, reported that for the last two years Alexandria has donated more money online than any other large city, with Arlington and DC also making the list. In 2008, residents of Alexandria contributed roughly $15,000 online per 1,000 people.

Please click here for more information on Volunteer Alexandria.