By JANICE PODSADA
The Hartford Courant
September 6, 2009
Is your water heater or oil furnace an energy glutton? There's hope — even better than hope, federal tax credits — if you replace it with an energy-efficient product.The American Recovery and Reinvestment Act of 2009, the same federal stimulus program that produced Cash for Clunkers, provides tax credits to consumers who purchase qualifying energy-efficient products, including insulation, storm windows and metal and reflective asphalt shingles.Buying new windows and doors? Replacing an old water heater with a solar-powered water heater? Putting a new roof over your head? You may be eligible for a tax credit equal to 30 percent of the cost of materials, up to $1,500 for qualifying products placed into service between Jan. 1, 2009, and Dec. 31, 2010.And the best part about this "clunker" program is that you don't have to physically trade in your old drafty windows or central air conditioning unit. Just save your purchase receipts and the Manufacturer Certification Statement.Here's how it works:A tax credit reduces the amount of taxes you owe. For example: If you owe $2,000 in federal taxes, a $1,500 refundable tax credit would lower your bill to $500.In most cases, qualifying home improvements must be made to your primary residence. In some cases, you may receive tax credits for improvements to a second home.So what's on the list?In some cases, not only is the product eligible for a tax credit, but the installation costs also are covered by the program. If they meet the criteria, the installation of heating, ventilation and air conditioning systems, biomass stoves, water heaters, solar panels, geothermal heat pumps, wind energy systems or fuel cells are covered by the tax-credit program. The tax credit is 30 percent of the total cost (the product plus installation), up to $1,500.Installation costs are not covered by the tax credit for roofs, insulation, windows or doors.And if you can't make the improvement this year or next, remember that some tax credits are available until 2016 — at 30 percent of the cost, with no upper limit — for geothermal heat pumps, solar panels, solar water heaters, small wind-energy systems and fuel cells.For a complete list of restrictions and requirements, go to www.energystar.gov/taxcredits.
For 2009, Congress has increased the credit to $8000, removed the repayment feature for some buyers, and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009.For home purchasesbetween Jan 1, 2009 and Dec 31, 2009...You may be eligible for a $8,000 tax credit. Please review detailed information on this page to determine eligibility.Frequently Asked Questions:
What's this new homebuyer tax incentive for 2009?
Who is eligible?
How does a tax credit work?
So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000?
How does withholding affect my tax credit and my refund?
What are the filing options to consider?
Is there an income restriction?
How is my "income" determined?
What if I worked abroad for part of the year?
How do I apply for the credit? ?
Sales of existing homes perked up in February, according to data from the National Association of Realtors. The number of sales grew to a seasonally adjusted annual pace of 4.72 million units, up from 4.49 million in January. The current pace is still down however; over February 2008, figures when sales reached a seasonally adjusted 5.03 million units.
The national median home price actually increased in February for the first time in seven months. The price rose to $165,400 from $164,800 in January, led by strong gains in the Northeast. One year ago, the national median price was higher at $195,600.
The NAR defines existing homes as all previously owned single-family homes, townhouses, condominiums, and co-ops. The group “seasonally adjusts” the sales numbers to factor in things like inclement weather, school sessions, winter holidays, etc to smooth out the trends. The NAR also describes its sales data based on an annual pace. The monthly figure represents the total number of housing units sold in one year if the current rate were to continue unchanged.
Home sales were up across the board in February for an average 5.1 percent nationwide, with the Northeast leading the way. Sales there increased by 15.6 percent to 740,000 units, up from 640,000 the previous month. From the February 2008 sales, however, the numbers are still down 14.9 percent.
The South also showed a significant increase in sales, with numbers growing to 1.74 million units, up 6.1 percent from 1.64 million in January. In year-over-year comparisons, sales in the South are still down 11.2 percent though.
The West had a slower monthly growth rate, with sales rising 2.6 percent to 1.2 million from 1.17 million the previous month. Compared with last year, however, sales are up an incredible 30.4 percent!
The Midwest saw a slight increase in sales in February, with a 1.0 percent up-tick to 1.04 million homes, from 1.03 million in January. Sales in that region are still down 14.0 percent over February 2008 figures.
The median home price, the point at which half of all homes sold for more and half sold for less, rose in February in the Northeast and South, stayed constant in the Midwest, and fell in the West.
The median price in the Northeast jumped up to $251,200 from 227,000 in January, but it is down 4.8 percent from a year ago when the price was $264,000.
The South experienced a median price growth to 146,700 from 143,300, although the price is down 10.0 percent over the previous year.
In the Midwest, the median price remained $131,000 for the second month, but it is still down 4.8 percent from February 2008.
The median price took a deep plunge in the West in February, falling to $204,600 from $215,500 the month before. The current price is down 30.3 percent over last year, a sign of how over-inflated Western home prices grew during the housing boom.
The number of existing homes for sale rose 5.2 percent to 3.8 million units from 3.6 million in January. However, at the current higher sales pace, the homes on the market represent a 9.7-month supply, the same amount as the previous month. Total housing inventory has still fallen 5.5 percent in the last year.
Data for March existing home sales, prices, and inventory will be available at the end of April.
Complete Self-Moving The two essential ingredients of a successful move are "personpower" and hauling capacity. Whether you rely on friends and borrowed vehicles or hire local college students and rent a truck to do the job, you need not only enough strong helpers but also the right hauling capacity. If you lack either of these, it's best not to self-move. Consider whether moving yourself actually makes economic sense. If you are moving a long distance, calculate the cost of travel: gas, tolls, meals, lodging, and so on. Add in the costs of renting a truck large enough to handle all your belongings, insuring valuable possessions, hiring additional help, and even the cost of pizza at the post-move party. Then get some estimates from professional moving companies and decide how costs compare with a self-move. Following is a guideline for estimating how much truck you'll need:
Storage
Green living is catching on. Home builders are building energy efficient homes and green communities, and individuals across the nation are taking steps to make their homes conserve more. Knowing your energy and water conservation options is half the battle, below are five things you can do to make your home greener in 2009.
1. CFL Light Bulbs – Compact florescent light bulbs. Probably the most popular (and easy) thing to do in your home TODAY. By replacing five of the most frequently used incandescent bulbs with CFL bulbs you could save about $100 a year on your electric bill. And going for Energy Star qualified CFL bulbs can last up to 10 times longer than regular bulbs and use 75% less energy. This means that just one bulb can save you $30 or more in electricity costs in its lifetime.
2. High Efficiency Toilets – Toilets make up about 30% of your home’s indoor water usage. Advancements in technology have helped produce toilets using 20% less water than standard and past models. Models like those found at Kohler and TOTO offer both high water efficiency and high performance.
3. Water Efficient Faucets – Using water efficient faucets throughout your home can save about 3-5% of your indoor water usage. Doesn’t sound like much, but energy savings though reduced hot-water use will repay the cost of the faucet within the year. According to the EPA, if every American home used a WaterSense faucet, we would save 60 billion Gallons of water annually.
4. Energy Star Appliances – From the water heater and fridge to the DVD player and computer you use every day, even the smallest plug-in appliances waste energy and electricity. Using Energy Star certified appliances guarantees the appliance is as energy efficient as possible. Energy Star certified computers can use 70% less energy than one that is not certified. Certified televisions can use about 25% less. When making a new purchase, check for the Energy Star label/certification.
5. Efficient Washing Machines – Washing machines can be big water wasters. Replacing your old washer with a newer, more efficient model can decrease your water usage by up to 60%, saving your family about 7,000 gallons of water each year. You will also save on detergent and energy. In addition to saving water, the newer front load washers get clothes cleaner than the standard washers.
What you should know about your state tax obligations.
Will You Purchase a Home or Business Property, Apply for a Mortgage or Loan, or Purchase Bonds?
Documentary stamp tax is levied on documents that transfer interest in Florida real property, such as warranty deeds and quit claim deeds. This tax is typically paid to the Clerk of Court at the time the document is recorded.
Documentary stamp tax is also levied on notes, certain renewal notes, bonds, and other written obligations to pay money executed, signed or delivered in Florida and mortgages and other liens filed or recorded in Florida. The tax is paid to the Clerk of Court if the document is recorded, or sent directly to the Department of Revenue, if not recorded.
Florida's general sales tax rate is 6 percent. Each retail sale, admission charge, storage, use, or rental is taxable, along with some services. Some items are specifically exempt. Some counties impose a discretionary sales surtax in addition to the 6 percent state tax. The county tax rates can range from .25 to 2.5 percent, and are levied on the first $5,000 of the purchase price. The $5,000 limit does not apply to commercial rentals, transient rentals, or services. Consumers pay sales tax and any county-imposed taxes to the seller at the time of purchase.
Unless specifically exempt, merchandise purchased out of state is subject to tax when brought into Florida within 6 months of the purchase date. This "use tax," as it is commonly called, is also assessed at the rate of 6 percent. Examples of such taxable purchases include purchases made by mail order or the Internet, furniture delivered from dealers located in another state, and computer equipment delivered by common carrier. Items purchased and used in another state for 6 months or longer are not subject to use tax when the items are later brought into Florida.
No use tax is due if the out-of-state dealer charged sales tax of 6 percent or more. If the dealer charged less than 6 percent, you must pay the difference to equal 6 percent. For example, if the dealer charged 4 percent, you must pay the additional 2 percent to Florida. Complete an Out-of-State Purchase Return (Form DR-15MO) to file and pay use tax. To obtain this form, see "For Information and Forms" on the back panel. If the tax owed is less than $1.00, you do not have to file.
If you purchase a home in Florida, you will pay ad valorem or "property" tax based on the taxable value of the property. Ad valorem taxes are assessed by the county property appraiser and collected annually by the county tax collector's office.
A $25,000 homestead exemption and cap on assessed value is available to homeowners who meet certain requirements. Certain exemptions are also available to blind persons and other physically challenged residents. Call your county property appraiser for details.
Florida's 6 percent use tax applies to and is due on motor vehicles brought into this state within 6 months from the date of purchase. If the purchaser resides in a county that imposes a discretionary sales surtax, that tax also will apply. Use tax and discretionary sales surtax do not apply if a like tax equal to or greater than 6 percent has been lawfully imposed and paid to another state or District of Columbia.
It is presumed that a motor vehicle used in another state, territory of the United States, or District of Columbia for 6 months or longer before being brought into Florida was not purchased for use in Florida. To qualify for exemption from use tax, you must provide documents to prove that the vehicle was used outside Florida for 6 months or longer.
The full amount of use tax (6 percent) applies and is due on any motor vehicle imported from a foreign country into Florida. It does not matter if the motor vehicle was used in another country for a period of 6 months or more prior to the time it is brought into Florida. Furthermore, Florida does not recognize tax paid to another country when calculating the tax due. The tax is calculated on the value of the vehicle at the time it is brought into Florida, not on the original purchase price.
For information on registration costs, regulations, driver licenses and minimum liability insurance coverage requirements, contact the Department of Highway Safety and Motor Vehicles. Visit their Internet site at www.hsmv.state.fl.us/dhsmv/newflres.html or call 850-617-2000.
Payment of tax due on motor vehicle registrations and the purchase of Florida license tags may be handled at the local county tax collector's office.
Florida does not impose personal income, inheritance, or gift taxes. However, there are other taxes and fees that, in certain counties or circumstances, Florida residents may be required to pay, such as: convention development tax, local option tourist tax, fuel, communications services tax, gross receipts tax, lead-acid battery fee, new tire fee, motor vehicle fee (Lemon Law), or rental car surcharge.
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