From the monthly archives:

April 2009

It’s Easy Going Green

by Terry Booth

We know there is a lot of talk about energy-efficiency and better built homes these days. The National Association of Home Builders has created a Green Program to provide standards that ensure energy efficiency, water and resource conservation, sustainable or recycled products, and indoor air quality are incorporated into the everyday process of home building. But not all of us can rush out and purchase one of these newer efficient homes. So…what can we do to improve our current homes? Here are seven things you can do this weekend to save water, energy, and money on your utility bills.

  1. Plant a tree or two. Solar heat absorbed through the windows and the roof can heat up a house and make your air conditioner work harder. Leaves absorb and reflect the sunshine, making the air temperatures directly under a tree about 25*F cooler than air near your driveway or sidewalks. Installing shade trees can keep a home cooler and reduce your energy bills. To block heat in the summer but let much of it in during the winter months, choose deciduous trees, which lose their leaves in the winter. Planting a tree to shade the air-conditioning unit can increase its efficiency by as much as 10%.
  2. Install shrubs and groundcovers. They will shade the ground and pavement around the house, which will, in turn, cool outside air before it reaches your home’s walls and windows. Putting up a trellis laced with climbing vines can also shade a patio or deck.
  3. Buy a rain barrel. It will catch the water as it runs off your roof; you can then use it to water your plants, irrigate your yard, wash your car. Rain barrels are available at many of the big box stores and are reasonably priced.
  4. Irrigate your plantings early in the morning. The water will soak into the soil instead of evaporating with the heat of the sun.
  5. Install a irrigation system. It doesn’t have to be a fancy irrigation system…something as simple as soaker hoses does the trick. Soaker hoses distribute the water to the plants slowly so that it allows for better absorption.
  6. Make friends with the caulking gun. It is important to seal off gaps found on the inside and outside of your home….this will prevent the warm air from seeping out in the winter, and the cooler air escaping your home during the summer. Inspect your doors, window frames, outdoor water faucets, dryer vents, and other areas for air leaks. There are many different types of caulk on the market. Make sure you select the proper type for the job.
  7. Replace outdoor lightbulbs. Using the newer compact fluorescent bulbs will not only trim your utility cost, but will prevent you from having to change bulbs as often. To take it a step further, why not install solar-powered outdoor lights, which store sunlight during the day for a night-time glow.

Do you have any other ideas for going green? Let me hear from you.

Until next time….

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Do You Qualify For The $8,000 Homebuyer Stimulus Package?

by Terry Booth

It’s been all over the news…First time homebuyers rejoice….you might be eligible for a whopping $8,000 tax credit. So..what is the hook? Let’s take a look at some of the fine print.

1. First time homebuyers are eligible. For purposes of the $8,000 tax credit, a “first-time homebuyer” is defined as any individual ( or spouse) with no present ownership interest in a principal residence during the past 3 years. Even if a taxpayer owned another principal residence in the past, he or she can still qualify as a “first-time homebuyer” as long as the taxpayer transferred title to previous residence over three years ago.

2. What constitutes a “principal” residence under the $8,000 tax credit? A principal residence is generally the home the taxpayer lives in the majority of the time. It must be located in the United States. To qualify for the tax credit, the property can be new construction or a resale. It cannot, however, be a vacation home or rental property.

3. Do you have to purchase a home within a certain time-frame? Yes. A “purchase” for purposes of this tax credit is defined as an acquisition. An “acquisition” generally occurs when the property closes and title to the property transfers to the Buyer, and not when the purchase contract is signed. In order to be eligible for the $8,000 tax refundable tax credit, you must purchase AND close on your primary residence between January 1, 2009 and November 30, 2009. For example, if you enter into a contract to buy a property on October 25, 2009 but do not close on the property until December 5, 2009, you will not qualify for the tax credit, because, based on the law, acquisition did not occur before November 30, 2009.

4. Do all “first-time homebuyers” get the maximum $8,000 tax credit? No, the amount is based on several things: purchase price and income. The maximum tax credit for an individual first time buyer is 10% of the purchase price, not to exceed $8,000. For instance, if you purchased a home for $50,000, the maximum amount you would be eligible for would be $5,000; however, if you purchased a home for $80,000 or more, the maximum amount you would be eligible for would be $8,000. The “first-time homebuyer” tax credit is subject to certain income restrictions. The tax credit starts to phase away for an individual with a modified adjusted gross income from $75,001 to $95,000 ( $150,001 to $170,000 for joint filers). The tax credit is eliminated completely if an individual’s modified adjusted gross income is over $95,000 ( $170,000 for joint filers).

5. Do you have to repay the $8,000? No, the tax credit does not need to be repaid if the buyer owns and resides in the property for at least 36 months. If the Buyer disposes of the property or ceases to be primary residence within 36 months of purchase, the buyer will be required to repay the tax credit.

6. How does a first-time homebuyer apply for the tax credit? A first time buyer may claim the tax credit on their federal tax returns using IRS Form 5405, which is available at http://www.irs.gov/pub/irs-pdf/f5404.pdf. If you have already filed your 2008 taxes, you can file a amended return and include the above form.

What a great time to buy!…Historically low interest rates, affordable housing prices, loads of inventory to choose from…PLUS up to $8,000 tax credit. Take advantage of this stimulus package…and enjoy the benefits of homeownership.

Until next time….

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