White Plains, NY Real Estate, June S. Sandberg I work for you! Call:914-450-0514
June S. Sandberg

WHITE PLAINS, NEW YORK


Click thumbnails to Enlarge.
pix-wp
 

pix-wp



NYS TAX CREDIT


NYS Tax Credit Overview and FAQ
Published by Joseph Rand on Wednesday October 7, 2009 6:49 PM
People have been asking about the first-time home buyer tax credit now available in New York State.  It's a little complicated, so we're going to try to explain how it works.  If you want to check out the government's official site on the program, go here.
 
Here's the lowdown: if you are a first-time home buyer in New York State, and get a fixed rated loan, you can get a New York State income tax credit for 20% of your yearly mortgage interest through the life of the loan.  So if you pay $10,000 in mortgage interest in the first year of your new loan, you'll get a NYS tax credit for $2,000, while the rest of your mortgage interest will still be deductible as normal.  (For an explanation of how a tax credit is different, and better, than a tax deduction, check this out.)
 
Okay, that's the overview. Now to some of the nitty gritty:
 
Threshold Qualifications
Here are the threshold qualifications:
 
1.  You have to be a first-time home buyer.
You cannot have lived in a home that you owned within the past three years prior to closing.  So if you owned investment real estate that you didn't live in, you qualify, but you need to sell that investment real estate by the time you close on the purchase for which you want the credit.
 
2.  You have to earn below a certain level of income.
The tax credit is only available to people at certain income levels.  For example, a two-person household in Westchester County cannot make more than $126,360, in Rockland $122,400, in Orange and Dutchess $97,061, and in Putnam $92,160.  Each county is different, and the qualification also depends on how many people who make an income are living there as well as whether the property you're buying is in a "target" area.  You can find the full range of income qualifications on the official site here, and income qualifications for the Hudson Valley counties broken out more easily here.


3.  You have to buy a property that qualifies by not being too expensive.
The credit is only available on properties that are below certain limits set for each county in the State.  (The property has to be in New York State, by the way).  The limits are set relatively high, so most people who qualify on an income level are probably going to be purchasing a property that qualifies.  For example, the property cannot be appraised above
$637,640 in Westchester, Rockland, or Putnam, or above $387,740 in Orange or Dutchess. 
 
Those are the fundamental requirements.  If you already own a home, you can't get it.  If you make too much money, you can't get it.  And if you're buying a $1,000,000 home, you can't get it.
 
Other Qualifications
Also, even if you pass these threshold qualifications, you have some other requirements, such as:
 
You have to pay a fee to apply of $250 for loans up to $100,000, and $500 for loan over $100,000.
You have to get a fixed rate mortgage.
You must occupy the home as a primary residence.
You can't use the property for a commercial business.
You can't purchase a home on more than 5 acres of land.
Your loan must be federally insured.
You can't have used more than 15% of your CURRENT residence for business or commercial purposes (as indicated on your most recent tax returns).
Your loan CANNOT be a SONYMA loan.
You can only buy a two-family home (or a 3-5 family home) if it is at least 5 years old and was used only as a residence for the past 5 years
 
(Special considerations apply if you are buying in a "Target Area," which is an area designated by the federal government as "economically distressed." If you're interested in purchasing in a Target Area, the government will waive some of the requirements set out above.  You should check with a loan officer if that's your plan, because the exceptions become too complicated for general treatment here.)
 
 
Frequently Asked Questions
Some frequently asked questions about the New York State First-Time Home Buyer incentive program, the Mortgage Credit Certificate.  The state has also set up its own FAQ, so you might want to check out the official site.
 
Q.  Do I have to use a special bank?
No, any mortgage bank or broker that is participating in the program can offer the program.  If you're looking for a good mortgage officer, you can check out Rand Mortgage, or I can recommend someone if you email me.
 
Q.  How do I know whether I qualify based on my income?
The income qualifications are different for each county.  We put together a simple chart showing the income limits for each county here.
 
Q.  How do I know whether I qualify based on the purchase price in my county?
You won't qualify if you're purchasing a property that's too expensive, so we put together a simple chart where you can see the purchase price limits for each county.
 
Q.  Do I have to file a special application?
Yes, you do.  You should get one from your loan officer, who will help you with the paperwork and register you for the program.  You also need to pay a special application fee, up to $500 for loans above $100,000. 
 
Q.  Is there a deadline to claim the tax credit?
There's no formal deadline, but the MCC program only has a certain amount of money.  The initial allocation was for about $100 million in new mortgages.  The state has said it expects that amount to last for months.  We're not so sure, so if you are interested you should move quickly.  If you remember, "Cash for Clunkers" was so successful that the federal government had to shut it down almost immediately because it ran out of budgeted money.
 
Q.  How much of a tax credit do I get?
You get a state tax credit for 20% of the mortgage interest you pay every year until your mortgage loan is "extinguished."   So if you pay $10,000 in mortgage interest next year, you get a $2,000 tax credit. And you get that credit for as long as you keep up with the loan and you keep the home as your primary residence.  If you want to try to calculate how much you might save, check out the state's tax calculator.
 
Q.  What if I don't owe any state tax at the end of the year?
The tax credit cannot exceed your state tax liability.  Thus, if you are supposed to get a $2,000 tax credit, but you only owe $500 in state taxes, you won't have to pay that $500 in taxes, and the other $1,500 can be carried forward for up to 3 years.  So if in the following year you owe $5,000 in state credits, you can apply that $1,500 in credits.
 
Q.  How is a tax credit different from a tax deduction?
We have a long explanation of that here.  But the short answer is that a tax CREDIT is a reduction in the taxes that you owe, while a tax DEDUCTION reduces your taxable income.  The tax credit is better, because you get the whole amount.
 
Q.  If I get the tax credit, does that mean I can't deduct my mortgage interest on my federal taxes?
No, you can still deduct the remaining mortgage interest (meaning the mortgage interest that you didn't get the credit on) from your state and federal taxes.  That is, if you pay $10,000 in mortgage interest in year one, you get $2,000 (or 20%) as a state tax credit.  The remaining $8,000 will be subject to the normal mortgage interest tax deduction.
 
Q.  Do I get the tax credit on both my state and federal income taxes?
You only get the tax credit on your New York State income taxes.  This is a state program, not a federal program. 
 
Q.  Can I get the tax credit if I closed a few weeks ago?
No, you can only get the tax credit if you complete your application prior to closing.  Remember that you still might qualify for the federal $8,000 tax credit, though, if you already closed this year and you otherwise qualify.
 
Q.  Can I get the state tax credit if I also try to get the $8,000 federal first time home buyer tax credit?
Yes, you can get both. 
 
Q.  Does the tax credit stay the same every year?
No, the tax credit will always be 20% of your mortgage interest, but the amount of the credit it will change as the amount of interest you pay each year goes down.  Remember that mortgage loans are structured so that in the first few years you mostly pay down interest, not principal. As time goes by, though, the amount of principal you pay off each month goes up, and your mortgage interest goes down.  As the mortgage interest goes down, your credit will go down.
 
Q.  What if I already own a home with someone else?
If you have an ownership interest in the home, you don't qualify.
 
Q.  What if I am a veteran?
If you are a veteran, the state will waive its first time home buyer requirement. 
 
Q.  What if I move out of the home in five years?
If you are no longer living in the home, you can't get the credit.  You won't have to pay it back for the years you lived in the home, but you can't get it for years that you don't live in the home.
 
Q.  What kind of home do I have to buy?  What if I want to buy a coop?
You can qualify for the tax credit if you are buying a cooperative apartment, a condominium, or a 1-4 family home.
 
Q.  Does the tax credit apply to new construction?
Yes, for condos, coops, or single-family homes.
 
Q.  Can I get the tax credit with an adjustable rate mortgage?
No, you have to get a fixed-rate mortgage.
 
Q.  Can I get the tax credit if I get the loan from a family member?
No, the tax credit is only good for a federally insured loan, not a personal loan.
 
Q.  Can I get the tax credit if I am refinancing my current home?
No, only for new purchases.
 
  
 
 


There are currently no Announcements.
 

EXCEPTIONAL FULL REAL ESTATE SERVICES



Welcome to June's Site


 

This is YOUR source for real estate including Scarsdale NY Real Estate, New Rochelle Real Estate, Edgemont and White Plains NY Real Estate. My mission is to provide both BUYERS and SELLERS of residential real estate with the strongest possible representation.

Specializing in:

Foreclosure Service, Short Sale and 1st Time Buyer

You may qualify for an $8,000 tax credit or more! You may also qualify  if you haven't owned a home in the last 3 years. Let an experienced realtor guide you through these new regulations.
 
SHOP FOR YOUR HOME A SMART WAY!

Just tell me the type of home you are looking for and I will email you as soon as a home hits the market that meets your criteria. I'll also let you know any time a home meeting your criteria has a price reduction. It's that easy!! Fill out the information form below. Your FREE , no obligation account can be set up within 24 hours.

 



Style  BUYERS:  IT'S A BUYERS' MARKET WHICH MEANS THAT IT'S A GREAT TIME TO BUY!  Buyers have negotiating power and if you have a motivated seller, a great deal can be had.  There are currently over 3,000 properties for sale in Westchester, including White Plains, New York and Scarsdale, New York.  I will provide you with a complete picture and analysis of available homes in the area that you wish to live in.  As a certified buyers representative, I will help you through the whole buying process and will guarantee that with hard work and attentiveness, you will find your dream home within a very short period of time.  I dedicate my full attention to my real estate clients and am always available to answer your questions.  I will help you with pre-approvals, attorneys, contractors and will find you properties at attractive prices through our huge WPMLS.

If you are a first-time buyer, if you are relocating or unfamiliar with the lower Westchester County, New York area or are buying for investment and need negotiation help, you need a buyer's sales representative specializing in Scarsdale, New York, White Plains, New York as well as the neighboring towns and villages within Westchester County.


 

                                                      WHITE PLAINS, NEW YORK

White Plains has a population of 56,000 and has seen a steady growth throughout the years. White Plains offers an attractive lifestyle with many restaurants and shops, is home to the new Ritz Carlton, Trump Towers, the Galleria, a multiplex theatre and The Westchester Mall with many thousands of people commuting into its bustling business center each day. The City provides the advantages of a thriving metropolis while maintaining the feel of a suburban environment. The atmosphere of family values and a sense of community togetherness is what keep people moving to White Plains. There are other solid reasons which account for the growth of White Plains: a reasonable tax structure, a skilled and well-educated workforce, low crime rate, super schools, affordable housing and all in all, an excellent quality of life. 

Trump Tower allows you to luxuriate in its services and elegance.  There are astounding views of the Manhattan skyline and the Long Island Sound as well as 11 foot ceilings, gourmet kitchens and a sumptuous Master Suite.  There is a concierge, porter, fitness center, swimming pools, a business center and children's playroom all within a 30 plus minute commute to Grand Central Terminal. 

 

                                                         SCARSDALE, NEW YORK

Home for saleSituated in lower Westchester County, Scarsdale lies between White Plains, Greenburgh, Mamaroneck, New Rochelle and Eastchester.  Scarsdale enjoys the distinction of being rated in the top 100 places to live.  There are five neighborhoods within The Village of Scarsdale; each having its own elementary school.  The median home price is over $1 million, double the county's median selling price.  Over 95% of Scarsdale's students go on to college.  Scarsdale is surrounded by beautiful golf courses, has a charming Tudor-style downtown area with many lovely shops, a community pool, parks and tennis courts.  There are many fine homes currently on the market at this time.

Please feel free to contact me with any questions or requests regarding homes for sale in White Plains, Scarsdale or any of the surrounding towns. Having lived in Westchester County area for over 35 years, I am knowledgeable and would be delighted to help you find your dream home.  I know where all the best shopping and restaurants are as well as all the main attractions.  I'm your expert for Scarsdale NY Real Estate, White Plains NY Real Estate, New Rochelle Real Estate, and the surrounding areas -- above all, please remember that I WORK FOR YOU!

 

SELLERS:   For HOME SELLERS, as part of my pledge of service, I am committed to the belief that selling a home is only part of the picture. I will provide you with a market analysis and Free Home Evaluation, which is very important in coming to the fair market value of your home.  I extensively and aggressively market your home on the Internet and in print so you are found by many thousands of home buyers throughout the world.  Your home will be on the first page of my website.  I will provide you with continuous feedback 7 days a week and will get you the best possible price within a short period of time.  My strong negotiation skills can save you time and money - a win-win for all.

Powered by http://www.compassinternetsystems.com">Compass Internet Systems

Home  |  Contact Me  |  Search MLS Listings  |  Featured Listings  |  Home Search  |  For Rent  |  Scarsdale NY Listings  |  White Plains NY Listings  |  New Rochelle Real Estate   |  3rd Quarter Market Stats  |  Home Evaluation  |  About Me  |  For Buyers  |  For Sellers  |  Resources  |  Neighborhood  |  House and Home  |  Home - Style 1  |  News  |  Home Styling  |  Why Hire a Professional?  |  Health and Nutrition  |  Art and Design  |  Show Home Photos  |  Home Search - Style 1  |  Testimonials  |  Do not pay too much  |  Smooth Home Purchase  |  Avoid Buyer Errors  |  Your First Home  |  Sample Splash Page  |  Selling Your Home  |  Common Selling Mistakes  |  Selling Price  |  Healthy Living  |  Food and Entertaining  |  Money and Finance  |  Buyer's Toolkit  |  Tile Your Backsplash  |  Protect Your Pet at Home  |  Stain Removal  |  Backyard Pond  |  Sweet Smell of a Sale  |  Make yourself Scarce  |  Seller's Toolkit  |  Home and Garden  |  Moving your Pets  |  Dinner Party  |  Tips for grilling  |  Backyard Composting  |  Careers and Education  |  Weddings and Style  |  Family  |  Travel  |  Technology  |  Real Estate
 

Privacy Policy  |  Site Map  |  For Agents  |  Profile  |  Login

©2007-2010 Better Homes & Gardens-Rand Realty