Tax Credit

Turning Your Home Green

And What It Can Do For Your Taxes

Uncle Sam WANTS you… to go green.  Sure, we’re near the end of the tax season, but for those who don’t know or are procrastinating, The United States government is offering tax incentives and credits to people who update their real estate with energy-saving technologies and/or buy hybrid vehicles. The kind of technologies that usually save you money, and with an extra tax break… well, that’s just a bonus.

Now there’s no tax break just yet for urban agriculture, so hold off on turning your Boston home rooftop into Green Acres, but there are plenty of options that can save you some cash.

Here’s the rundown and a few things to keep in mind for next year if you already filed your taxes.

If you made your residency the greenest home in your Boston neighborhood, then the energy saving renovations made from last year could save you $1,500 on your tax bill.

Unfortunately, 2010 is the last year for such a huge energy and environmental tax credit, so for those who already filed your taxes… you’re out of luck. The new residential energy-efficient tax break that just succeeded on Jan. 1 is a much more limited version.

Here’s where it gets tricky.  Home energy upgrades installed between Jan. 1 and Dec. 31 will give you a tax credit that’s about 10 percent of costs up to a maximum of $500.

Depending on the type of renovations you make, your exact credit could be less. So here are the facts that could help you out.

  • 10 percent of costs, capped at $500
    • Insulating such home components as roof, doors, and windows
  • $300 for air conditioners and heat pumps
  • $300 for energy efficient water heaters
  • Capped at $200, 10 percent of costs for Energy Star windows
  • $150 for high efficiency furnaces and boilers
  • $50 for main air circulating fans

Now here’s the bummer for anyone who’s already claimed a total credit of $500 or more on previous energy tax credits since Jan. 1, 2005. The overall $500 tax credit cap will apply to you too.

So if you’ve already claimed that amount or more, you can’t claim any additional real estate energy renovation costs on your 2011 tax return.

But if you’ve received less than $500 over the years on home energy renovations, then you can claim the remaining amount for any improvements you make this year.

Here are the details offered on Energy Star’s website that explains in detail the eligible renovations and credit limits for the 2010 and 2011 tax years.

 

Now to get more out of your “go green” tax credit, you may want to consider investing in more efficient alternative energy systems for your Massachusetts home.

The Residential Energy Efficient Property Credit equals 30 percent of what you spend on any of these systems below:

  • Solar electric systems
  • Solar hot water heaters
  • Geothermal heat pumps
  • Wind turbines
  • Fuel cell property

The good news here is there’s no cap on the credit amount for these energy systems. Whatever the 30 percent of costs, is what you get back.  That even includes installation and labor to your allowable credit.

Credits for these large energy saving upgrades may be more expensive, but you have plenty of time to consider taking on such a project for your real estate since the credits are available until the end of 2016.

Phoenix Realty offers exceptional Boston property management services for your home, investment, or commercial property.  Please contact Phoenix Realty for further information in regards to our specific services offered.

Tags: , , , , , , , ,

Tuesday, April 5th, 2011 Boston First-Time Home Buyers, Boston Homes, Boston Homes for Sale, Boston Real Estate, Tax Credit No Comments

What you need to know about the first-time home buyer tax credit extension

If you’ve been waiting and hoping that the federal government would extend the first-time home buyer tax credit, your patience has paid off. The bill, which was set to expire on November 30th, provides a tax credit of $8,000 to home buyers who have not owned their primary residence for at least 3 years.

ADDITIONALLY…

  • Now home owners who have lived in their primary residence consecutively for five of the past eight years are also eligible for a tax credit of $6250 if they buy a new home.
  • The current income limits to get the full tax credit are $75k for a single person and $150k for a married couple. With the new bill, income limits have been raised to $125k for a single person and $225k for a married couple. The purchase and sale agreement must be signed by April 30, 2010 and the property must change hands by July 1, 2010. The cost of the home must be less than $800k.

The extra money from tax credits can help finance the little changes that a new homeowner wants to make the house their own or can be used toward the down payment. Every little bit helps in these economic times.

The team of professional agents at Phoenix Realty can help you find that perfect home and ensure that you get all the tax credits and incentives possible. If you’re not sure whether this is the right time to move, we’re here to help. We’ll do a free appraisal of your existing home for both sales and rental potential and help work through the pros and cons of your various options. We’re also there to help you find your next great home. It’s easy when you have the right help!

Tags: ,

Friday, November 13th, 2009 Boston, Boston Real Estate, Real Estate News, Tax Credit, Uncategorized No Comments

Buyers must act fast to get First-Time-Home-Buyer Tax Credit

Thinking of buying a home? Act fast and you may save big! The government is offering an $8,000 credit for first-time home buyers. The money comes right off of your tax bill and need never be repaid, unlike some previous home-buying incentives. The home must be your primary residence and you must take possession by November 30, 2009. That means that you’d better start shopping! It takes at least 30 days to close a loan and with the expected rush, it could be even longer.

Even if you’ve owned a home before, you may be a virgin again in the eyes of the federal government. If you don’t own the home where you’ve spent the past 3 years, you’re considered a first-time home buyer and are eligible for the $8000 tax credit. What’s more, if you’re getting a loan from the Federal Housing Administration (FHA), you can even use the $8,000 toward your down payment or closing costs. An FHA loan is a home loan that is guaranteed by the US government and it only requires 3.5% down payment. That means that to buy a house for $100,000, you’ll only need $3,500!

The tax credit is 100% for single people making less than $75,000 or married people making less than $150,000 total gross annual income. The credit is adjusted for those making between $75,000 and $95,000 or between $150,000 and $170,000 for married couples and disappears entirely above $95,000/$170,000.

Here’s a great link with some FAQ’s on the tax credit: www.federalhousingtaxcredit.com/2009/faq.php#2

At Phoenix Realty, we have all the tools to help you locate and purchase your first home. Contact us now or give us a call at 617.731.3311, because now time really is money!

Tags: , ,

Monday, September 14th, 2009 Boston, Boston First-Time Home Buyers, Boston Homes, Boston Homes for Sale, Buying or Selling Homes, Real Estate News, Tax Credit No Comments

Sales Search

Rental Search

Search

 
Real Estate @ WordPress.