Tax Break for New Pasadena Home Buyers

The Housing and Economic Recovery Act of 2008 was signed by President Bush on July 30, 2008. While the primary intent of the Act was to improve confidence and stability in the housing market by providing mortgage relief by keeping American families in their homes, another area of the Act provides a huge tax break for first-time Pasadena home buyers.

First time home buyers (means any individual who had no present ownership interest in a principal residence during the 3-year period ending on the date of the purchase of the principal residence) may receive a tax credit up to $7,500, and for couples using the standard deduction to receive an additional $1,000 deduction for property taxes ($500 for individuals).

In order to receive this tax credit, the home purchase must take place between April 9, 2008 and July 1, 2009.

This temporary Act was designed to get home buyers who were thinking of purchasing a home to act now to stimulate home purchases, and help home builders and real estate agents sell more homes.

Here are some key provisions of The Housing and Economic Recovery Act of 2008:

Who is Eligible?

The $7,500 tax credit is available for first time home buyers only.
The law defines first time home buyers as a buyer who has not owned a home during the past three years.
All U.S. citizens who file taxes are eligible to participate in the program.
All homes, whether single family, townhomes or condominiums apartments will qualify, as long as the home will be used as a principal residence.

Income Limits:

Home buyers who file as single or head-of-household taxpayers can claim the full $7,500 credit if their adjusted gross income (AGI) is less than $75,000.
For married couples filing a joint return, the income limit can not exceed $150,000 AGI
Single or head-of-household taxpayers who earn between $75,000 and $95,000 AGI, are eligible to receive partial first time home buyer credit.
Married couples who earn between $150,000 and $170,000 AGI are eligible to receive a partial first time home buyer tax credit.
The tax credit is not available for single taxpayers whose AGI is greater than $95,000 and married couples with an AGI greater than $170,000

Tax Credit Refundable:

A refundable credit means that if the taxpayer pays less than $7,500 in Federal income taxes, the government would write the taxpayer a check for the difference. (If the taxpayer owed $3,500 in taxes, he would pay nothing and receive a check for $4,000 from IRS.)
If the taxpayer were to receive a $1,000 tax refund from the IRS, the refund would grow to $8,500 ($1,000 refund due, plus $7,500 from the home buyer tax credit).
Home buyers may take the tax credit in their 2008 or 2009 tax return.
If the purchase took lace in 2008, the tax credit would be taken in the 2008 tax return. If the purchase takes place in 2009, the tax credit can be taken in 2008 or 2009, at the home buyers’ option.

Payback Provisions:

The tax credit is essentially an interest-free loan to be repaid over 15 years.
For example, a home buyer claiming $7,500 credit would repay the credit at $500 per year over 15 years. if the home owner sold the home then the remaining credit would come from the profit of the home sale. if there was insufficient profit from the sale of the home, the remaining credit payback would be forgiven.

Are you ready to take advantage of this Tax Break and buy your new Pasadena home or Pasadena condo? If so, here’s a list of homes for sale in Pasadena for your review:

Fri, 03 Feb 2012 18:23:00 +0000: $399,000 :: 101 North GRAND Avenue #21, Pasadena CA, 91103 - Pasadena Home Search

2 beds, 2 full baths
Home size: 1,326 sq ft
Lot Size: 1,314 sq ft
Added: 01/06/12, Last Updated: 02/03/12
Property Type: Condominium, Residential
MLS Number: K12002593
Community: Pasadena Nw
The price of this listing was last reduced on 2/3/2012 by 9%

****VERY UNIQUE REMODELED CONDO WITH A GREAT VIEW OF PASADENA WITH ARROYO SECO/BRIDGE VIEW, WRAP AROUND BALCONY**** STANDARD SALE *** ***Seller considering offers from $399K - $449K*** ***STANDARD SALE!!!*** VIEWS, VIEWS, VIEWS and one of the largest wrap around BALCONY!! NEW REMODEL JUST COMPLETED ON THIS FABULOUS POST MODERN UNIQUE AND GIANT CONDOMINIUM, property is a TURNKEY & ready to move right in. This property has been UP-GRADED with **NEW FRIGIDAIRE GALLERY GAS SELF CLEANING,** NEW CONVECTION RANGE,** NEW DISHWASHER,** NEW VENTED MICROWAVE/HOOD. **BRAND NEW SQUARE EDGE CABINETS throughout, **NEW GRANITE COUNTER TOPS,***NEW TIMELESS SUBWAY TILES in both baths, **NEW TRAVERTINE TILE FLOORS IN KITCHEN, **BATHS, AND FIREPLACE SURROUND,FRAMELESS GLASS TUB/SHOWER ENCLOSURE IN MASTER, REFINISHED WOOD FLOORS THROUGHOUT MOST OF THE HOME, FRESHPAINT AND MUCH MUCH MORE. EASY ACCESS TO OLD TOWN PASADENA, ROSE BOWL & COLORADO BRIDGE. MUST SEE!!! EASY TOSHOW!!! **COMPLEX IS NOT APPROVED FHA** SEE REMARKS FOR MORE INFO AND SHOWING INSTRUCTIONS ***

Listed with Marc Zaffina, Griffin Real Estate, INC.

Brought to you by Irina Netchaev, John Aaroe Group. Call me today at 626-627-7107, or visit my website at www.pasadenaviews.com!
Fri, 03 Feb 2012 18:03:00 +0000: $210,000 :: 355 South Madison Avenue #311, Pasadena CA, 91101 - Pasadena Home Search

1 bed, 1 full bath
Home size: 694 sq ft
Lot Size: 0 sq ft
Added: 01/03/12, Last Updated: 02/03/12
Property Type: Condominium, Residential
MLS Number: 22159868
Community: Pasadena Se

Top floor corner unit with one common wall. Newer upgraded carpets and new flooring in kitchen and bath. Newer stainless steel kitchen appliances. Large oversized closets in master bedroom and hall. Bathroom has separate shower and tub. Newly painted interior. Security building with subterranean parking(1 parking space). Private deck off living room. Association (pool, spa, BBQ, rec room and gym). Close to shopping, banks, Old Town, El Paseo, and Gold Line.

Listed with Jan Thornton, Prudential California Realty

Brought to you by Irina Netchaev, John Aaroe Group. Call me today at 626-627-7107, or visit my website at www.pasadenaviews.com!
Fri, 03 Feb 2012 17:47:00 +0000: $499,000 :: 1275 North Mentor Avenue, Pasadena CA, 91104 - Pasadena Home Search

2 beds, 1 full bath
Home size: 1,118 sq ft
Lot Size: 8,525 sq ft
Added: 02/03/12, Last Updated: 02/03/12
Property Type: Single Family, Residential
MLS Number: 22161055
Community: Pasadena Ne

This picture perfect 1914 Craftsman Bungalow sits in the beautiful and prestigious Bungalow Heaven Historic Landmark District. Past owners ensured this piece of Pasadena history retained all its original charm during a remodel in 2000-from the wrap around porch, river rock chimney, exposed rafter tails, and gable roof, to the pocket doors, picture rails, built in cabinets and meticulously landscaped front yard, this home reflects both the charm of a traditional Craftsman residence and the appeal of updated luxury. A den adjacent to the second bedroom could be a nursery or 3rd bedroom. Great for entertaining with open floor plan, flagstone patio, and peaceful outdoor sitting areas. The remodel included updated electric, copper plumbing, security system, refinished hardwood floors in the bedrooms and bath, new central air/heat, automatic sprinklers, and new period light fixtures throughout the house. There's also an oversized 2-car detached garage and a large,flat, enclosed yard.

Listed with Cheyenne Wilbur, Podley Properties

Brought to you by Irina Netchaev, John Aaroe Group. Call me today at 626-627-7107, or visit my website at www.pasadenaviews.com!
Fri, 03 Feb 2012 17:01:00 +0000: $751,000 :: 1444 North Grand Oaks Avenue, Pasadena CA, 91104 - Pasadena Home Search

3 beds, 2 full, 1 part baths
Home size: 2,184 sq ft
Lot Size: 6,989 sq ft
Added: 11/07/11, Last Updated: 02/03/12
Property Type: Single Family, Residential
MLS Number: 22158414
Community: Pasadena Ne
The price of this listing was last reduced on 2/2/2012 by 1%

This remodeled revival home in the popular Presidents streets area boasts the ultimate in flexibility: an attached unit. The unit can be incorporated into the home (as it was when the current owner bought in 1994), or kept separate. Main house: 1,551 sqft 2 bed home. Attached 633 sqft 1 bedroom guest house shares a wall with the dining room and has a separate entrance from Garfias and its own private patio. A door can be added in the formal dining room to make this a large family home. Great for an extended family, or even rental income of $1,300/mo. Both units have large remodeled kitchens, all bathrooms with imported stone, an abundance of natural light with many skylights, and many well designed bonus features. Main house includes a finished 233 sqft attic, 232 sqft of storage, and a 2 car garage with workshop. Sold with a Fidelity Home Warranty and termite clearance. Standard sale. Also listed as income property MLS #22158426.

Listed with Michael Bell (w/ Kevin Peters), Keller Williams Realty

Brought to you by Irina Netchaev, John Aaroe Group. Call me today at 626-627-7107, or visit my website at www.pasadenaviews.com!
Fri, 03 Feb 2012 16:52:00 +0000: $739,800 :: 3564 Thorndale Road, Pasadena CA, 91107 - Pasadena Home Search

3 beds, 1 full, 1 part baths
Home size: 2,033 sq ft
Lot Size: 9,141 sq ft
Added: 11/09/11, Last Updated: 02/03/12
Property Type: Single Family, Residential
MLS Number: 22158477
Community: Pasadena Se
The price of this listing was last reduced on 12/7/2011 by 5%

This lovely single level traditional home is located in the heart of Chapman Woods with fabulous curb appeal.An inviting brick pathway and courtyard leads to this charming home.Elegant living room is highlighted with a handsome marble surround fireplace, built in shelves, crown molding and recessed lightings. Light filled den/family room with lovely light fixtures and view of grassy back yard through wall of French doors and windows.Dining room features wainscoting and ceiling fan. Updated kitchen with white on white tiled counter tops and cabinets.3 spacious bedrooms; each bedroom has large closet with built-in dresser and shuttered windows. Updated baths include one full bath with custom vanity and a three-quarter bath with marble counter top and designer tiled floor.Play room behind the laundry area features brick floor, ceiling fan and French door opens out to the brick patio. The private rear yard with wood fences has large grassy area.

Listed with Sabrina Wu (w/ Michael Trujillo), Coldwell Banker

Brought to you by Irina Netchaev, John Aaroe Group. Call me today at 626-627-7107, or visit my website at www.pasadenaviews.com!