You will find a new look when you surf by www.npdodge.com as of today. We have made some significant changes to our website that will allow our end users to get dialed in on a specific search right from our home page which saves time and effort! We could go on and on about the changes and enhancements but think it better just to tell you that it has been enhanced and let you experience it for yourself.  Please take the new www.npdodge.com for a spin and let us know what you think!

Feel free to try the site out in Spanish, Russian, French...OK, that is really all we are going to say. Please try it out and let us know what you think!

 

We have created a section within npdodge.com to answer a multitude of questions that we have received over the past few weeks and general information that you might be interested in so that you too can take advantage of this valuable credit! The links below the video screen on the right side will refresh the page and automatically play a new video. Leave us a comment below if you have a question or simply email us at info1@npdodge.com as we are here to help!

 Click the image below for our full $6,500 tax credit resource:

If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

Robert Wiebusch ~ NP Dodge Blog Author

You must have lived in the same principal residence for any five-consecutive-year period during the eight-year period that ended on the date the replacement home is purchased. For example, if you bought a home on Nov. 30, 2009, the eight-year period would run from Dec. 1, 2001, through Nov. 30, 2009.
NP Dodge Real Estate Blog Author - Robert Wiebusch

I just spent an hour on hold with the Internal Revenue Service to gain clarity on something and here is what I found out:

Q:  I'm already a homeowner. If I buy another home after Nov. 6, 2009, to use as my principal residence, do I have to sell my home to qualify for the homebuyer tax credit?

A: No. If you meet all of the requirements for the credit, the law does not require you to sell or otherwise dispose of your current principal residence to qualify for a credit of up to $6,500 when you buy a replacement home to use as your principal residence. The requirements are that you must buy, or enter into a binding contract to buy, the replacement principal residence after Nov. 6, 2009, and on or before April 30, 2010, and close on the home by June 30, 2010. Additionally, you must have lived in the same principal residence for any five-consecutive-year period during the eight-year period that ended on the date the replacement home is purchased. For example, if you bought a home on Nov. 30, 2009, the eight-year period would run from Dec. 1, 2001, through Nov. 30, 2009. (11/17/09)

Learn more about the $6,500 tax-credit straight from the IRS website: CLICK HERE

This is a great opportunity for those homeowners that otherwise qualify for this credit but want to keep their currnet personal residence as a rental property or a vacation home. The key is in bold above: You just need to buy a replacement personal residnece!

The IRS is updating information about this tax-credit often. It appears from the footnote on the link provided above that the IRS webpage was updated today. With that said, we urge you to consult with your lender and/or tax professional and/or the IRS directly if you have a spcific circumstance or question about the $6,500 tax-credit.

Robert Wiebusch ~ NP Dodge Blog Author

Below are a few Special Added Benefits for Members of the Military, the Foreign Service
and the Intelligence Communities...

 Congress has acknowledged the unique circumstances affecting members of the  military, the foreign service and the intelligence community by making the following  exceptions that apply to both the $8,000 tax credit for first-time home buyers and the  $6,500 tax credit for repeat home buyers.

Exemption From Tax Credit Recapture Rules:

•  Typically, homes that are sold or that cease to be used as a principal residence within  three years of the initial purchase are subject to recapture of the tax credit.
•  
•  However, qualified service members who sell or move from a tax credit home  within three years of the initial purchase due to official extended duty are  exempt from the recapture rule.

 Extension of Tax Credit Deadlines

•  The home buyer tax credit is available for qualified purchases with a binding sales  contract in place on or before April 30, 2010 and closed by June 30, 2010.
•  
•  However, for qualified service members who are ordered on a period of official  extended duty, these dates are extended for one year. For these home buyers, the  tax credit applies to sales with a binding sales contract in place on or before April 30,  2011 and closed by June 30, 2011.

 Definitions

•  "Qualified service member" means a member of the uniformed services of the U.S  military, a member of the Foreign Service of the U.S., or an employee of the  intelligence community.
•  "Official extended duty" means any period of extended duty while serving at least 50  miles away from home for a period in excess of 90 days.

Here is the scoop and a great 'understandable' reference guide for the $6,500 Current Home Owner Tax-Credit:

Who is eligible to claim the $6,500 tax credit?
Qualified move-up or repeat home buyers purchasing any kind of home are eligible to claim this credit. You can move up, down, sideways...There are no restrictions on what type of home you buy, it just has to be a personal residence so you could sell a million dollar home and buy a townhome for $150,000 and as long as you meet all the other limitations you qualify for the $6,500 tax-credit.

What is the definition of a move-up or repeat home buyer?
The law defines a tax credit qualified move-up home buyer ("long-time resident") as a person who has owned and resided in the same home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the home ownership history of both the home buyer and his/her spouse. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit. Again, you do not have to 'move-up'! You just need to have owned a personal residence for 5 consecutive years out of the last eight. You could currently be living in an apartment and have owned a personal residence from 2002-2007 (a full five years) and qualify for the credit if you buy a home on or before April 30, 2010!

How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit. This is a true tax-credit! For example: If your federal income tax at the end of the year was $8,300 and it just so happens that you withheld exactly $8,300 then you would get a refund check for $6,500 or 10 percent of the purchase price of your home.

Are there any income limits for claiming the tax credit?
Yes. The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts. In others word, if you make more that these limits then you may qualify for a portion of the credit. For example: You are single and you made $135,000 then you would qualify for 50% or $3,250 of the credit. If you still have questions on this one give me a call and I will walk you through your scenario 740-5008,

How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008? How is this different than the rules established in early 2009?
The previous tax credits applied only to first-time home buyers and were for different amounts of money. The previous credit was only for First Time Home buyers and you had to pay it back to Uncle Sam! This one is for current home owners who sell a personal residence and buy a different one. Oh, and you don't have to pay it back!!

How do I claim the tax credit? Do I need to complete a form or application? Are there documentation requirements?
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 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns). Fill out the form and provide a copy of the HUD-1 Settlement statement when you file your taxes.

What types of homes will qualify for the tax credit?
Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. This is not a misprint, you can buy any type of home it just has to be a personal residence. So you can't buy a vacation home, investment property...it has to be a personal residence! To my knowledge their are no houseboats for sale on npdoddge.com. :)

It is important to note that you cannot purchase a home from, among other family members, your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse or your spouse's family members. Please consult with your tax adviser for more information. Also see IRS Form 5405. This has been added just to clear up the crazy scenarios that people will come up with to try and qualify for credits such as this one.

Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be after November 6, 2009 and on or before April 30, 2010 (or by June 30, 2010, provided a binding sales contract was in force by April 30, 2010). The dates are the most important factor here. Buying a new home is an outstanding way to take advantage of this credit just make sure you are on track with the process so your new construction home closes on or before June 30,2010!

Is a tax credit the same as a tax deduction?
No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $6,500 in income taxes and who receives a $6,500 tax credit would owe nothing to the IRS. This is a true credit! If you withheld the exact amount of taxes that you owe then you would get a check from Uncle Sam for this credit!

A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $6,500 in income taxes. If the taxpayer receives a $6,500 deduction, the taxpayer's tax liability would be reduced by $975 (15 percent of $6,500), or lowered from $6,500 to $5,525.

If I'm qualified for the tax credit and buy a home in 2009 (or 2010), can I apply the tax credit against my 2008 (or 2009) tax return?
Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 (or 2010) as if the purchase occurred on December 31, 2008 (or if in 2010, December 31, 2009). This means that the previous year's income limit (MAGI) applies and the election accelerates when the credit can be claimed. A benefit of this election is that a home buyer in 2009 or 2010 will know their prior year MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount. In other words: You close on your home and then file an amended return and the tax credit is in your pocket possibly within weeks after your closing takes place so don't think you have to wait until you file your taxes next year to obtain the monies from this credit.

Taxpayers buying a home who wish to claim it on their prior year tax return, but who have already submitted their tax return to the IRS, may file an amended return claiming the tax credit using Form 1040X. You should consult with a tax professional to determine how to arrange this.

For a home purchase in 2009 or 2010, can I choose whether to treat the purchase as occurring in the prior or present year, depending on in which year my credit amount is the largest?
Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in the present year and a larger credit would be available using the prior year MAGI amounts, then you can choose the year that yields the largest credit amount. When in doubt we urge you to visit with your tax adviser.

 For a complete list of details click here: npdodge.com/taxcredit

Robert Wiebusch ~ NP Dodge Blog Author

Feel free to call me direct if you have any questions about the $6,500 tax-credit. 740.5008

Technology plays an ever-increasing role in real estate today. From the way consumers search for properties to the ways agents communicate information and stay connected with their customers, the business landscape is constantly changing. We know because we've helped change it. NP Dodge provides the best tools in the business to help our sales associates reach prospective buyers and sellers, stay connected with clients and get more business done in less time. From innovative research tools to web-based marketing & customer-relationship programs to online listing & contract support, NP Dodge puts technology to work where it counts-helping our agents focus on business and respond to their customers' needs. Our company-wide support network, NPDodge Office, exemplifies that technology at work. This interactive web-based database gives NP Dodge agents 24/7 access to a vast range of documents and information-From current interest rates and e-forms to marketing materials and industry reports, it's virtually everything an agent could ask for.

From the NP Dodge Research Division: Clearing the muddy waters of the First Time Homebuyer Tax-Credit Extension. If you are a first time homebuyer trying to take advantage of the current $8,000 tax-credit program then it is imperative that your closing takes place prior to the deadline on November 30th, 2009! We will continue to monitor the progress of this possible extension/expansion and will be sure to keep you all informed. Thanks for watching and have a great day!

First impressions have always been lasting so why should anything be different on a website? Why shouldn't the people behind the website reach out to the very users that are searching and do it in real time when their attention is focused?  We have been wrestling with this concept here at NP Dodge where a consumer can strike up a live chat with one of our licensed Realtors® and engage us in conversation but what happens when we engage the user?  Will they be scared off? Do they want to remain anonymous while they browse Bank Owned Homes or Career Information or do they really want someone to reach out and proactively engage them based on their movement through our site?  We would love some feedback and honest responses to what you think! Does this proactive engaging scare you or does it make you think that the people behind a given website really have their act together given that they are accessible in real time and truly want to help the website user?

NP Dodge Unveils New Mobile Website for its Sales Associates~

Omaha, Nebraska - Today NP Dodge Real Estate introduced the mobile version of their back office website npdoffice.com. This new site, m.npdoffice.com, is packed with features that NP Dodge Sales Associates can use to streamline their daily activities like listing hit reports, market reports, the latest interest rates from First National Bank and more.

"We understand the need for our agents to be mobile and want them to have the tools and technology that allows them to thrive in this ever changing environment," said Mike Riedmann, President of Residential Sales. "Timely information is imperative to the success of our sales associates and providing them a website that can be accessed from their phone is a natural step for us."

Brian Marasco, an agent with NP Dodge, said "The ability to have npdoffice.com on my mobile phone is just another great example of the benefits of being an Agent at NP Dodge...whether I need an important real estate form that I can email to my client, view current market reports I can forward on to my buyer or seller, or even another agent's phone number...it's all at my fingertips!"

NP Dodge is the oldest family owned real estate company in the United States. The company currently maintains 15 offices in Nebraska and Iowa and have over 500 sales associates. For instant access to homes available in your area and throughout the United States or to find out more about one of the fastest growing real estate companies in Nebraska and Iowa visit the premier real estate website in the region: npdodge.com, and when on the go: mobile.npdodge.com.

What features do you have or wish you had from a mobile website to make you more effective in your daily real estate business?? We want to know!