Monday March 23rd 2009.
Tax Credit
The American Recovery and Reinvestment Act of 2009 was just signed into law. One of the major provisions provides an $8,000 tax credit to qualified First Time Home Buyers (as well as those who have not owned a home in the last three years)
$8000 tax credit highlights:
The $8000 tax credit or 10% of the home’s purchase price, whichever is less, is available only for first time home buyers (Definition of a “first time home buyer” is a buyer who has not owned a principal residence during the three-year period prior to the purchase)
There is a $75,000 adjusted gross income limit for tax filers filing as single and $150,000 limit for joint return filers.
The $8000 tax credit is available only for primary residence purchases.
The tax credit does not require a repayment in most cases.
The tax credit does have a repayment provision if the homeowner does not occupy the property for a minimum of 3 years from the closing date.
The home buyer must purchase a home between January 1, 2009 and December 1, 2009.
The $8000 tax credit is received when you file your tax return. And you can amend your 2008 return and receive the credit this year even if you have already filed.
Frequently Asked Questions:
How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. 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 69 of their 1040 income tax return. No other applications or forms 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 first-time home buyer tests.
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.
For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).
I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.
For additional Frequently Asked Questions please visit the FAQ section of the Federal Housing Tax Website
IRS Form 5405
Federal Housing Tax Credit website
2009 Federal Housing Tax Credit Frequently Asked Questions page
Wednesday March 4th 2009
Builder Of The Year
LONG TIME ANN ARBOR RESIDENT BUSINESS OWNER BOB GUENTHER NAMED BUILDER OF YEAR BY HOME BUILDERS ASSN. OF WASHTENAW COUNTY
ANN ARBOR, MI. – Long time Ann Arbor resident Bob Guenther, second generation member of his family to run Guenther Homes, an iconic and established homebuilder based here, was named Builder of the Year by the Home Builders of Washtenaw County Association, which represents some 750 companies and persons involved in home building in Washtenaw County, located here and about 45 minutes west of Detroit.
Bob Guenther, who began going to work with his father Reuben at the age of 12, took over the family business in 1963 and never looked back. Today, Bob Guenther continues to apply his skills as a home designer, draftsman, and developer with his daughter Natalie Ceccolini and Rob Guenther assuming day to day activities of running the company.
Guenther has managed to survive by pursuing an aggressive and creative strategy of cost cutting and business diversification despite the current economic downturn.
Tuesday February 10th 2009
Going Green
Like all industries these days the homebuilding industry has heard the call to “Go Green”. Customers are expecting the new homes they buy to be more energy efficient, more comfortable and to create less waste when being built.
But the problem can be deciding whether your builder is simply using the green label as a marketing tool, while not really changing their building practices, or whether they have embraced the new techniques and technologies that can really make a difference in the way a new home performs.
So having said that what is green building anyway? The best definition of green building, I have discovered, is in a Weyerhaeuser iLevel publication, Green Simplified:
“While there is no commonly accepted definition, a green home is one that minimizes impacts on the human and natural environment. This can include actions to boost energy efficiency, reduce construction waste, improve indoor air quality, and use water more wisely, among other considerations.”
Here at Guenther Homes we incorporate “Green” building practices!
- Reducing construction waste: When we construct our homes we use wall panels, roof trusses and floor trusses made off site in indoor facilities. These facilities use the wood products very efficiently and engineer the production and assembly of the panels to create as little waste as possible. And the waste that is generated can be recycled.
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Boosting energy efficiency: The biggest loss of energy in a home is through air leakage. We incorporate an energy seal into each home that seals cracks throughout the entire structure. This step is done twice during the construction. Once upon the completion of the rough framing and then again after drywall. Studies have shown that this step alone can save up to 30% of the homes’ utility costs! To make the most of the fuel that is needed in the home we use a 95% efficient furnace and high efficient water heater.
- Indoor air quality. The energy seal also assists in keeping dust and airborne debris from the outside from entering the home. And fresh air is ducted in from the outside to the combustion area near the furnace and hot water heater. To ensure that all fuel-burning appliances operate safely, air must be provided while they are operating. Without this make up air, your house can quickly become polluted with unhealthy gases, including deadly carbon monoxide (CO).
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Reduce water use. By using low-consumption toilets and faucets we reduce the amount of water used in the home.
- Land Conservation and Erosion control. As we plan and develop our neighborhoods we put an emphasis on set aside conservation areas and water run off erosion control. In a Guenther neighborhood it is very common to see deer, fox, waterfowl and other wildlife flourishing in the woods and wetlands that are protected as part of the overall development plan. In Plum Grove in Monroe there is a bald eagle that visits the ponds that we created as well as bufflehead ducks and egrets.
Many of us here at Guenther spend hours with our families in Michigan’s great outdoors. Our commitment to environmental responsibility is more then a slogan.
Sunday February 1st 2009
Understanding Short Sales
Many people these days find themselves in the tough situation of owning a home that is worth less then the mortgage amount and needing to sell.
They may be facing economic hardship such as the loss of a job or struggling with medical bills and have found that they can no longer make their monthly mortgage payment. Foreclosure may seem to be the only option but a short sale might be a better alternative for the homeowner and the bank.
As the name implies a short sales is when a property is sold “short” or for less then the outstanding mortgage amount. The first question many people ask is why would a bank allow a short sale? The answer is that if they foreclose they could lose even more.
Let’s look at it from the banks perspective. Let’s say the mortgage amount on a home is $200,000 but the value is now only $175,000. If the bank forecloses they will receive no payments for up to a year while the legal process and redemption period run their course. Then when they take possession of a home the will need to change the locks, maintain the home, make any necessary repairs, insure the property and pay a real estate agent a commission to sell the home. When it is sold it will probably sell for less then $175,000 because buyers usually bid low on these types of properties. So if the bank sells the property for $160,000 and has spent $20,000 in fees and maintenance then they will only recoup about $140,000 of the original $200,000 mortgage amount.
Now imagine that the bank gets a call from the homeowner saying, “ I am a few months behind in my payments, I can not afford to continue to make these payments and I may have to let the home fall into foreclosure and I may need to file bankruptcy. But the good news is I have an offer on the home for $175,000 and they can close as soon as you approve the short sale.”
The math for the bank is clear. They will come out much father ahead if they approve the short sale.
Will It Always Work?
No. Most lenders don’t even consider a possible short sale situation if the mortgage payments are not behind by at least two or three months. Also you will need to prove that a hardship exists and navigate the paperwork requirements. Below is a list of some of the items the lender may require. The process can seem daunting. But if you or someone you know needs to take advantage of a short sale Guenther Homes can help. We have all the forms required and we will deal directly with your mortgage company to negotiate a short sale.
Tuesday October 14th, 2008
Sales, sales, sales!! When the going gets tough the tough get going! While other builders are rolling up the sidewalk and closing shop Guenther Homes continues to sell homes!
Plum Grove in Monroe has sold two condos at
The Park, one Town Home at the
Village and 3 single family homes in
The Estates in the last 30 days!!!
At
Middlebrook Meadows in Adrian we have closed one sale and entered into contracts to build two homes all in the last ninety days!
Foxfire, Guenther's premier Ann Arbor City Location, completely sold out in summer 2008!
Inverness Woods, a spectacular community located north of Chelsea Michigan, completely sold out in summer 2008!
11/30/1999$8000 Tax Credit!11/30/1999Builder of the Year11/30/1999Meeting the GREEN challange.11/30/1999Understanding Short Sales11/30/1999Sales! Sales! Sales! 
