Home prices up in Central Indiana 8.2 percent over 2009 According to the F.C. Tucker Company Marketwatch report released Jan. 14, home prices in all nine Central Indiana counties are higher in December 2010 than they were in 2009; it's the sixth straight month that Central Indiana has seen gains in average sales price.
However, home sales were down about 1.54 percent in December 2010 compared to 2009.
“While home sales were not where we wanted them to be in 2010, we still saw significant positive movement in the market,” said Jim Litten, president of F.C. Tucker Company. “With historically low mortgage rates, a healthy supply of competitively priced homes and a slow, but steadily improving economy, I’m confident the market will only improve over the next few years.”
New sponsors help keep music playing at Fishers Town Hall
Kelly Dather Real Estate Group to sponsor June 15 concert
FISHERS – The Kelly Dather Real Estate Group, part of the F.C. Tucker Company in Fishers, announced it will sponsor the June 15 concert, Big Daddy Caddy, which is part of the Fishers Summer Concert Series. The real estate team – which includes Fishers Realtors Kelly Dather, Laura Musall, Leah Duffy, Ed Wieckowski and Deanna Baird – not only will sponsor the free concert, but it also will be giving away an overnight trip to a floating cabin at Lake Patoka Marina in Southern Indiana, among other prizes. The Town of Fishers hosts the free Concert Series on the Town Hall lawn each Tuesday from June 1 through July 13. Concerts are from 7 p.m. to 9 p.m. Thousands of Fishers-area residents pack a picnic, bring lawn chairs and sprawl out on the lawn to listen to (and dance to) music under the stars. "It's thanks to generous sponsors like The Kelly Dather Real Estate Group that allows us to bring great entertainment and create free events for the whole community," said Fishers Town Manager Gary Huff. The Kelly Dather Real Estate Group is one of six corporate sponsors to help fund bands for the Summer Concert Series. "Events such as the summer concerts are among the reasons that Fishers is one of the top places to live in the U.S.," said Realtor Kelly Dather. "We're thrilled to be able to help keep the music alive this summer and bring people together from all over our community." During the 2009 concert series, an estimated 3,000 people attended each Tuesday night. Fishers officials expect that number to grow as the popularity of the concert series continues to expand. The concerts kick off Tuesday, June 1.
For more information about the Fishers Summer Concert Series, go to www.fishers.in.us/parks.
Tips and info for homeowners, home buyers and home sellers in the Indianapolis area
Congress passes $6,500 tax credit for repeat buyers
Who is eligible to claim the $6,500 tax credit? Qualified move-up or repeat home buyers purchasing any kind of home are eligible to claim this credit. What is the definition of a move-up or repeat home buyer? The law defines a tax credit qualified move-up home buyer (“long-time resident”) as a home owner who has owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.
How is the amount of the tax credit determined? The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit.
Are there any income limits for claiming the tax credit? Yes. The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits.
How do I claim the tax credit? Do I need to complete a form or application? Are there documentation requirements? You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns).
No other applications are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and repeat home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase. Home buyers must attach a copy of their HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase.
What types of homes will qualify for the tax credit? Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences. It is important to note that you cannot purchase a home from, among other family members, your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse or your spouse’s family members. Please consult with your tax advisor for more information. Also see IRS Form 5405.
I read that the tax credit is “refundable.” What does that mean? The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.
Is a tax credit the same as a tax deduction? No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $6,500 in income taxes and who receives an $6,500 tax credit would owe nothing to the IRS. A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $6,500 in income taxes. If the taxpayer receives a $6,500 deduction, the taxpayer’s tax liability would be reduced by $975 (15 percent of $6,500), or lowered from $6,500 to $5,525.
Is there a way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 or 2010 tax return? Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.
Source: National Association of Home Builders Disclaimer: F.C. Tucker Company is providing this information for your general understanding. F.C. Tucker does not offer legal advice. Only a CPA, Attorney or Tax Preparer can advise you of the tax implications and/or benefits of this available tax credit. Consult a qualified advisor prior to taking action with this information.
In the news
U.S. News & World Report, Indiana Chamber Independently Rank HSE High Among Best
U.S. News & World Report places HSEHS on its ‘Best High School’ silver list. The local school also was designated a “Head of the Class” school for 2008 by the Indiana Chamber of Commerce’s 10th annual Indiana’s Best Buys report.
