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New Listing at 1521 Second – Open House 3-1

February 28, 2009 by  
Filed under Uncategorized

Come by this Sunday to tour this 180 degree view unit at Fifteen Twenty-One Second from 1:00 to 4:00.  Visit our Fifteen Twenty-One Second website to view a large image photo gallery.

$1,649,000 ($948/Sq.Ft.)
MLS# 29026202 – Active

Interior Size: 1,740 Sq.Ft.
Building: FIFTEEN TWENTY-ONE (building profile)
Beds: 2   Baths: 1.75
Community: Downtown

Remarkable views, refined quality, seduction at every turn. 29th floor featuring sweeping views of sound, skyline, market & mountains. Gourmet Kit w/slab granite, Subzero & Wolf Appl; Spa Bath w/heated floor, California Closets, Toto jetted tub; power blinds; 2 car parking; pre-wire for audio/video & home integrated system; 10′-1” ceiling–highest of any floor in building! Premier building w/24 hr Concierge, Gym, Conference Rm, Sky Lounge. Best location downtown–overlooking Pike Place Market.

2902_kitchenPhoto Gallery

2902_livingPhoto Gallery

2902_bathPhoto Gallery

New Stimulus Package: Part I – Homebuyer Tax Credit

February 25, 2009 by  
Filed under Uncategorized

Now that the dust has settled, Congress has voted, and the decisions has been made, questions about the new stimulus package can finally be answered.  Since there were several provisions made, we’re breaking up the stimulus into 10 parts over the next week or two.  Here’s what areas of the stimulus has been revised/improved.

  • Homebuyer Tax Credit
  • FHA, Fannie Mae and Freddie Mac Loan Limits
  • Neighborhood Stabilization
  • Commercial Real Estate
  • Rural Housing Service
  • Low Income-Housing Grants
  • Tax Exempt Housing Bonds
  • Energy Efficient Housing Tax Credits & Grants
  • Transportation Investments
  • Broadband Deployment

Homebuyer Tax Credit

This provision is very exciting for first-time buyers in that the credit has been increase from $7,500 to $8,000, and the credit does not require repayment.  Most importantly, anyone wanting to take advantage of the first-time homebuyer credit must do so before December 1st, 2009.  The National Association of Realtors (NAR) did make a run at making the credit $15,000, but it was considered “too rich for this program.”  Here are a list of FAQ’s provided by NAR.


1. What’s this new homebuyer tax incentive for 2009?

The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount.  If the house costs less than $80,000, the credit will be 10% of the cost.  Thus, if an individual purchased a home for $75,000, the credit would be $7500.  It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.

2. Who is eligible?

Only first-time homebuyers are eligible.  A person is considered a first-time buyer if they have not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.

3. How does a tax credit work?

Every dollar of a tax credit reduces income taxes by a dollar.  Credits are claimed on an individual’s income tax return.  Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due.  Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill.  So, if before taking any credits on a tax return a person has total tax liability of $9,500, an $8,000 credit would wipe out all but $1,500 of the tax due ($9,500 – $8000 = $1500).

4. So what happens if the purchaser is eligible for an $8,000 credit but their entire income tax liability for the year is only $6,000?

This tax credit is what’s called “refundable” credit.  Thus, if the eligible purchaser’s total tax liability was $6,000, the IRS would send the purchaser a check for $2,000.  The refundable amount is the difference between $8,000 credit amount and the amount of tax liability ($8000 – $6000 = $2000).  Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.

5. Is there an income restriction?

Yes.  The income restriction is based on the tax filing status the purchaser claims when filing his/her income tax return.  Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than $75,000.  Married couples who file a Joint return may have income of no more than $150,000.

6. How is my “income” determined?

For most individuals, income is defined and calculated in the same manner as their Adjusted Gross Income (AGI) on their 1040 income tax return.  AGI includes items like wages, salaries, interest and dividends, pension and retirement earnings, rental income and a host of other elements.  AGI is the final number that appears on the bottom line of the front page of an IRS Form 1040.

7. What if I worked abroad for part of the year?

Some individuals have earned income and/or receive housing allowances while working outside the US.  Their income will be adjusted to reflect those items to measure Modified Adjusted Gross Income (MAGI).  Their eligibility for the credit will be based on their MAGI.

8. Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefit of the credit?

Not always.  The credit phases-out between $75,000 – $95,000 for singles and $150,000 – $170,000 for married filing joint.  The closer a buyer comes to the maximum phase-out amount, the smaller the credit will be. The law provides a formula to gradually withdraw the credit.  Thus, the credit will disappear after an individual’s income reaches $95,000 (single return) or $170,000 (joint return).  For example, if a married couple had income of $165,000, their credit would be reduced by 75% as shown: couple’s income $165,000 income limit 150,000 excess income $15,000 the excess income amount ($15,000 in this example) is used to form a fraction.  The numerator of the fraction is the excess income amount ($15,000).  The denominator is $20,000 (specified by the statute).  In this example, the disallowed portion of the credit is 75% of $8,000, or $6,000 ($15,000/$20,000 = 75% x $8000 = $6000).  Stated another way, only 25% of the credit amount would be allowed.  In this example, the allowable credit would be $2000 (25% x $8000 = $2000).

9. What’s the definition of “principal residence?”

Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%).  It is also defined as “owner-occupied” housing.  The term includes single-family detached housing, condos or co-ops, townhouses or any similar type of new or existing dwelling.  Even some houseboats or manufactured homes count as principal residences.

10. Are there restrictions on the location of the property?

Yes.  The home must be located in the United States.  Property located outside the US is not eligible for the credit.

11. Are there restrictions related to the financing for the mortgage on the property?

In 2009, most financing arrangements are acceptable and will not affect eligibility for the credit.  Congress eliminated the financing restriction that applied in 2008 (in 2008, purchasers were ineligible for the $7500 c