Montgomery Talk

Mortgage Interest Rates Dec 2, 2009

noreply@blogger.com (Montgomery Talk) — Sat, 05 Dec 2009 21:13:00 +0000

FHA
5% 30 Year Fixed
3.875% 5/1 ARM

Conventional
4.875% 30 Year Fixed
4% 5/1 ARM

Jumbo (Over $729,750)
5.875% 30 Year Fixed
5.125% 5/1 ARM

Home Buyer Tax Credit Extended!

noreply@blogger.com (Montgomery Talk) — Sat, 05 Dec 2009 21:10:00 +0000

Home Buyer Tax Credit has not only been extended, but it has also been expanded to include current homeowners. The following are features of the new bill:

Deadline for new and improved credit is April 30, 2010, as long as the home is under contract by that date; deal must close within 60 days.

Eligibility and amount of new credit:

$8,000 for first-time home buyers (those who have not owned a home in the last three years).

Up to $6,500 credit for homeowners who have lived in the home they are selling, or have sold, as a principal residence for five consecutive years in the past eight.

Buyers with income exceeding $125,000 for single and $225,000 for married couples are not eligible.

Homes valued at more than $800,000 are also ineligible.

Hearthstone Village Townhouse style condo Close to Metro

noreply@blogger.com (Montgomery Talk) — Sun, 06 Sep 2009 18:26:00 +0000

$8,000 TAX CREDIT FOR FIRST-TIME BUYERS

noreply@blogger.com (Montgomery Talk) — Thu, 19 Feb 2009 20:27:00 +0000

First-time home buyers will get a tax credit windfall if they buy before December 2009. As part of the economic stimulus bill, first-time home buyers can claim a credit worth $8,000 (or 10% of the homes value, whichever is less) on their 2008 or 2009 taxes.

This credit is refundable, meaning that tax filers see a refund of the full $8,000 even if their total tax bill was less than that amount. Unlike the earlier version of the tax credit which really was a loan, this tax credit does not have to be paid back if the buyers live in the home for at least 3 years.

To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers must be first-time home buyers, meaning they cannot have owned a home in the past three years.

There also are income restrictions. To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. Higher income buyers may receive a partial credit up to a certain amount of income.

Taxpayers who already have completed their 2008 returns can file amended returns for 2008 in order to claim the credit.

Mortgage Foregiveness Debt Relief Act of 2007

noreply@blogger.com (Montgomery Talk) — Thu, 14 Feb 2008 21:18:00 +0000

On December 20, 2007, President Bush signed into law the new Mortgage Forgiveness Debt Relief Act of 2007, H.R. 3648; Pub. Law 110-142. That law includes several tax changes relating to real estate transactions. The first major change pertains to forgiveness of mortgage debt resulting from short sales, foreclosures, etc. Prior to the new law, any forgiven debt would be taxable as income. The change now states that any forgiven mortgage debt is excluded from income if:

- The property subject to the mortgage is a Principal Residence;
- The mortgage indebtedness is related to Acquisition Indebtedness; and
- The forgiven indebtedness is NOT related to services performed on behalf of the lender or is directly related to a decline in the value of the residence or to the financial condition of the taxpayer.
The amount excluded from gross income shall be applied to reduce the basis of the principal residence of the taxpayer.

The foregoing requirements would appear to exclude forgiveness of mortgages acquired through refinances and home equity loans or lines of credit obtained after purchasing the property. Before advising your clients that they will not have to pay income tax on any forgiven mortgage amount, be sure to have your clients consult with an accountant or tax attorney to be sure this law would apply. Additionally, this change is applicable only for forgiven indebtedness from January 1, 2007 to December 31, 2009 and is limited to $2 million of debt forgiven.

Another change affects homeowners’ deductions of private mortgage insurance. Prior to the new law, effective 2007, homeowners were able to deduct payments of private mortgage insurance on the income tax return. This deduction was only to have been for 2007, terminating as of December 31, 2007. The change in the law now extends private mortgage insurance deductions through December 31, 2010.

Additionally, the new law affects a surviving spouse’s ability to take the joint capital gains exclusion for property owned when their spouse was alive. Prior to the new law, a surviving spouse could only take the joint exclusion of $500,000 if the principal residence was sold within one year of the spouse’s death. The new law retains the joint exclusion but extends a surviving spouse’s ability to use the exclusion for two years from date of death if the property was used as a principal residence for at least two out of the previous five years prior to the spouse’s death.

This is not intended as legal advice . Any additional detailed questions should be directed to an accountant or a tax attorney.

New Montgomery County Recordation Tax Law

noreply@blogger.com (Montgomery Talk) — Wed, 13 Feb 2008 17:52:00 +0000

New Montgomery County Recordation Tax Law
Effective March 1, 2008

Effective March 1, 2008, the recordation taxes for Montgomery County, Maryland will be increased to $10 per $1000 for consideration payable over $500,000.00. Consideration payable of $500,000.00 or less will continue to be taxed at the current rate of $6.90 per $1000.00. The tax calculation will continue to exempt the first $50,000.00 of the sales price from recordation tax if the property is to be owner occupied. The new Act applies to any transaction that occurs on or after March 1, 2008. The new Act, however, does not affect the existing State and Montgomery County transfer taxes. To avoid any confusion in advising or preparing net sheets for your clients, we are providing the following examples as to how the new Montgomery County recordation tax will be applied.

Consideration (i.e. Sales Price) of $600,000.00 for a Principal Residence:
First $50,000 of sales price is exempt from recordation tax
The next $450,000 of sales price is taxed at $6.90/$1000
The remaining $100,000 of sale price is taxed at $10/$1000
Total Recordation Tax: $4,105.00
Total County Transfer Tax (1%): $6,000.00
Total State Transfer Tax (.50%): $3,000.00

Consideration (i.e. Sales Price) of $600,000.00 but will NOT be a Principal Residence:
First $500,000 of sales price is taxed at $6.90/$1000
Next $100,000 of sales price is taxed at $10/$1000
Total Recordation Tax: $4,450.00
Total County Transfer Tax (1%): $6,000.00
Total State Transfer Tax (.50%): $3,000.00

Consideration (i.e. Sales Price) of $375,000.00 for a Principal Residence:
First $50,000 of sales price is exempt from recordation tax
Remaining $325,000 of sales price is taxed at $6.90/$1000
Total Recordation Tax: $2,242.50
Total County Transfer Tax (1%): $3,750.00
Total State Transfer Tax (.50%): $1,875.00

Consideration (i.e. Sales Price) of $375,000.00 but will NOT be a Principal Residence:
Full sales price of $375,000 is taxed at $6.90/$1000
Total Recordation Tax: $2,587.50
Total County Transfer Tax (1%): $3,750.00
Total State Transfer Tax (.50%): $1,875.00

The foregoing is not intended as legal advice and additional questions should be directed to the Montgomery County Tax Office.

Does anyone else care?

noreply@blogger.com (Unknown) — Tue, 11 Dec 2007 12:42:00 +0000

That Montrose Parkway will be up and running in a matter of days?

I did not think so.

In Memory of Sean Taylor

noreply@blogger.com (Montgomery Talk) — Sat, 01 Dec 2007 00:48:00 +0000

Sean..............you will be missed! Now we can only imagine what you would have accomplished.

Friday Discussion

noreply@blogger.com (Unknown) — Fri, 23 Nov 2007 19:06:00 +0000

Increasing your credit limit...yay or nay?

Discuss.

Happy Thanksgiving!

noreply@blogger.com (Unknown) — Thu, 22 Nov 2007 18:16:00 +0000

Feast all...for I declare Thanksgiving a verb.

Friday Discussion

noreply@blogger.com (Unknown) — Fri, 16 Nov 2007 17:08:00 +0000

Why are you so surprised that it is cold out...? It is NOVEMBER.

Discuss.

The lack of evidence is overwhelming!

noreply@blogger.com (Unknown) — Tue, 13 Nov 2007 13:20:00 +0000

I am all for new home construction...within reason of course. I am all for finding ways to fund schools, as it seems enrollment continues to rise although census data can't see where all these children could possibly be coming from**.

Come on already, give me concrete data to support raising fees for builders. I am not opposed to said fees rising...I just like to see facts and figures and a little put your money where your mouth is. That's right, YOU, county council and your growth policy.

**I have no comments on this issue.

Friday Discussion: Going Green

noreply@blogger.com (Unknown) — Fri, 09 Nov 2007 12:44:00 +0000

What does this mean to you? Your children? Your future?

Hand sanitizer anyone?

noreply@blogger.com (Unknown) — Tue, 06 Nov 2007 12:20:00 +0000

A health report released on Monday by the United Health Foundation finds that the state of Maryland has the third-highest rate of infectious disease in the nation, climbing four spots this year to 28th.

Oh goodie!

Quite a feat...considering that medical advances in only the last few decades have all but erradicated most common ailments. The study conducted includes data which encompasses but is not limited to; infectious diseases such as HIV/AIDS, the flu, and common ailments which can be prevented through immunizations...and hand-washing.

While the most concentrated cases are in densely populated urban areas where poverty, mis-information and a lack of education are prevelant, the problem is state-wide.

What do we do with this information? Arm yourselves...literally speaking. Do your research, immunize your children, practice safe sex and for God's sake...wash your hands.

Go Play!

noreply@blogger.com (Unknown) — Mon, 05 Nov 2007 21:47:00 +0000

For those so inclined. Visit this website. Call some folks. Voice your opinion.

Look...we all know Bethesda used to be a less than desireable city, literally the 'wrong side of the tracks', but enough is enough!

ENLIGHTEN HERE

Friday Discussion - delayed

noreply@blogger.com (Unknown) — Fri, 02 Nov 2007 17:31:00 +0000

Question:

Who do you think Joel Osteen will vote for?

Discuss

'It's as far as we'll go...'

noreply@blogger.com (Unknown) — Thu, 01 Nov 2007 12:37:00 +0000

Well then...the Fed cut rates.

1/4 percent.

Have fun with your Christmas shopping folks.

Happy Halloween!

noreply@blogger.com (Unknown) — Wed, 31 Oct 2007 15:51:00 +0000

Have a great day folks, dress up, have fun...go to a party and get plastered.

BUT PLEASE, exercise caution on your way home. Grab a cab, watch out for kids and generally be safe. Your boss expects you at the office bright and early tomorrow.

BOO!

Circus

noreply@blogger.com (Unknown) — Tue, 30 Oct 2007 14:03:00 +0000

$1.44 against the Euro.

Numbers on unemployment expected to hold steady.

Credit un-uncrunch.

GM tries to boost hybrid car sales (in China).

80000 new jobs in October (I will wait for the polls)?

What do all these headlines mean?

Not a darn thing until we hear what the FED has to say about rates tomorrow.

Bah humbug.

Slot and effect...

noreply@blogger.com (Unknown) — Thu, 25 Oct 2007 11:32:00 +0000

What do YOU think?

The Examiner - D.C. Edition WEB PDF

The Washington Post - Online Edition

Note:The articles referenced are the opinions of the writers, editors and copywriters of the above referenced media outlets.

Note: This post is NOT a subsitute for tomorrow's discussion.

SUB-urban renewal...at its finest.

noreply@blogger.com (Unknown) — Fri, 19 Oct 2007 17:44:00 +0000

An ongoing proposal just got hotter. A close-in Bethesda neighborhood with an aging populus must decide between dying in their homes or watching their homes being bulldozed...at least they can watch their nest egg grow!

Washington Post Article

Friday Discussion: Peaceful Protest?

noreply@blogger.com (Unknown) — Fri, 19 Oct 2007 10:48:00 +0000

You know what I am talking about...if not, turn on the news.

Discuss.

Animal Welfare League of Montgomery County

noreply@blogger.com (Montgomery Talk) — Mon, 15 Oct 2007 20:49:00 +0000

The mission of the Animal Welfare League of Montgomery County: to enhance the lives of Montgomery County Maryland residents and animals through programs directed at education, adoption, animal shelter, and low cost spay/neuter.

"The AWLMC is committed to ending the euthanasia of adoptable animals in Montgomery County Maryland. With this in mind, we are partnering with the county shelter to help save the most at-risk animals. Currently, we are only working with cats. We hope to be able to add a dog program soon.

In order to save as many cats as possible, we have opened a no-kill shelter in Gaithersburg. We need your help in the form of direct financial donations and by volunteering your time. Our organization is strong and full of highly dedicated volunteers of all ages, backgrounds, professions and abilities. We are working together to save the lives of cats and kittens, to find them loving, forever homes and to have them spay/neutered. "

The AWL provides a wonderful service for the residents and animals of Montgomery County. Check out their website http://www.awlmc.org/. If you have room in your home to help an animal in need, want to volunteer or would like to donate they could certainly use your help.

Salt. Pepper. Wolfgang Puck.

noreply@blogger.com (Unknown) — Mon, 15 Oct 2007 16:44:00 +0000

My recommendation would be to stop by this tasty spot and sample the wares.

The Newseum/Wolfgang Puck/Scott Drewno three-level dining attempt may pay off!

New Feature: Friday Discussion

noreply@blogger.com (Unknown) — Fri, 12 Oct 2007 11:44:00 +0000

In an attempt to rile up the community and offer lively discussion...I will be offering a topic every Friday (and taking suggestions for new topics). I am sure it could take months for this to sky-rocket. In the meantime, it will be lively discussions between the blog contributors (should be fun!).

Today's topic:

Winchester Homes will build at least 730 homes in the newly-named Poplar Run subdivision of Silver Spring (for those who know the area, this is the former site of the Indian Spring Country Club). Residents are outraged...the MCPS school board needs to decide if/when they will build a school. MCPS has two years from yesterday to build the school or Winchester Homes can build as many as 773 units of which 390 can be townhome style.

Discuss.