Not too long ago I joined other local Roseville business people for a special VIP tour of the Sacramento art district during the 2nd Saturday Art Walk event. The privately organized (informational) bus tour was RELAXED and FUN! We enjoyed snacks and beverages as we toured the Franklin Boulevard Urban Plein Air Art Project. We also walked the streets of mid-town Sacramento, the heart of the Sacramento art district. We saw some amazing art, met some really neat people, and enjoyed a tasty serving of gumbo and calamari at one of my favorite restaurants, Celestin’s.
Downtown Roseville could easily produce an equally intriguing art exhibit and experience for people to enjoy, similar to the Sacramento project. Imagine plein air art displayed on the side of downtown Roseville’s buildings, like the Tower theater, First Bank, Crystal Creamery, Blue Line Gallery, Roseville Telephone, Roseville Library, etc. With downtown Roseville’s heavy need for a destination anchor and growing interest in the arts, the marriage of the two seem to be a perfect fit. I’m hopeful that the coming years will produce just such an event.
A special thanks to the Roseville Library Foundation for hosting a great evening!
Pictures of Plein Air Artwork and various Artists
More Pictures of the Day
About a month ago, Kyle and Kelly (my brothers) made the big jump into homeownership. They bought their house together, after experiencing Uncle Sam’s interest in their incomes as gainfully employed college graduates, in need of a tax write-off. Shortly after closing their purchase, they started asking me: “Hey Davey, how do we get that $8,000 tax credit from the government?”
I gave them the following information:
All new first time home buyer and repeat buyer Tax Credit are effective immediately. Closings occurring on or before April 2010 qualify for the new & improved first time home buyer and repeat buyer tax credit.
First Time Home Buyers
The $8,000 first time home buyer tax credit applies to home buyers that purchase homes at $80,000 or more. Anything less than $80,000, the tax credit that applies is 10% of the purchase price.
- There is NO PROVISION that stipulates that the Repeat Buyer must purchase a home more expensive than the one sold.
- There is NO PROVISION that says the Repeat Buyer must sell the home before the new one close
- Qualifying sale of existing principal residence must be any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.
New Income Limits
- For home purchases on or after November 6 2009, new income limits raised to Modified Adjusted Gross Income of $125,000 for a full refund and phase out adjustment up to $145,000 for single taxpayer.
- Modified Adjusted Gross Income of $225,000 and phase out adjustment up to $245,000 for married taxpayers.
Purchase by a Dependent
There was no age limitation on the original bill and amended for the November Tax Credit. Taxpayer must be at least 18 years old to qualify for the credit. For married taxpayers, the taxpayer shall be treated as meeting the age requirement if the taxpayer or spouse meets the age requirement.
There is no criteria that home buyers must “move up” in house. Only that they lived in the house for the past 5 out of 8 years as a primary residence. The new purchase price must not exceed $800,000.
For 2008 Purchases
For home purchases in 2008, the tax credit works as if it is a 15-year no-interest loan up to $7,5000. The total amount of tax credit equals 10% of home purchase price.
For 2009 Purchases
For home purchases in 2009, the tax credit is 10% of purchase price to a
maximum of $8,000. On or after November 6 2009, repeat buyers qualify also.
- Applies to taxpayer’s principal residence.
- Reduces taxpayer’s tax bill, dollar for dollar.
- Is fully refundable which means if the taxpayer is eligible and owes no
tax, taxpayer will receive a full refund.
When to File For This Tax Credit
First time home buyers who purchase a home in 2009 can claim the tax credit on 2008 tax return by filing for an amended return or 2009 tax return. Credit may not be claimed before closing.
The credit is claimed using Form 5405 with an original or amended tax refund.
To file an amended tax return, use Form 1040X.
|FEATURE||Jan 1 – November 30, 2009
Rules as enacted February 2009
|December 1 – April 30, 2010
Rules as enacted November 2009
|First-time Buyer – Amount of Credit||$8000 ($4000 married filing separate)||$8000 ($4000 married filing separate)|
|First-time Buyer – Definition for Eligibility||May not have had an interest in a principal residence for 3 years prior to purchase||-Same-|
|Current Homeowner – Amount of Credit||No Provision||$6500 ($3250 married filing separate)|
|Effective Date – Current Owner||No Provision||Date of Enactment|
|Current Homeowner – Definition for Eligibility||No Provision||Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years|
|Termination of Credit||Purchases after November 30, 2009.(Becomes April 30, 2010 on Date of Enactment.)||Purchases after April 30, 2010|
|Binding Contract Rule||None||Written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close|
|Income Limits||$75,000 – single, $150,000 – married, Additional $20,000 phase out||$125,000 – single, $225,000 – married,
Additional $20,000 phase out
|Limitation on Cost of Purchased Home||None||$800,000|
|Purchase by a Dependent||No Provision||Ineligible|
|Antifraud Rule||None||Purchaser must attach documentation of purchase to tax return|
We recently came across this blog post and found it to be very interesting. As real estate professionals however, we stress the importance of going through the proper steps before concluding that walking away from a mortgage is the BEST option. The preferred option would be a loan modification or short sale – which would be less detrimental to you and your credit and better serve your (neighborhood) community home values.From John Amato’s virtual online magazine Crooks and Liars By Susie Madrak Monday Nov 30, 2009 6:00am
I’ve been saying this all along to people: The only real obstacles are in your head. There’s no reason in the world to keep throwing good money after bad.
Banks won’t negotiate with borrowers until more people start to do this:
Go ahead. Break the chains. Stop paying on your mortgage if you owe more than the house is worth. And most important: Don’t feel guilty about it. Don’t think you’re doing something morally wrong.
That’s the incendiary core message of a new academic paper by Brent T. White, a University of Arizona law school professor, titled “Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis.”
White argues that far more of the estimated 15 million American homeowners who are underwater on their mortgages should stiff their lenders and take a hike.
Doing so, he suggests, could save some of them hundreds of thousands of dollars that they “have no reasonable prospect of recouping” in the years ahead. Plus the penalties are nowhere near as painful or long-lasting as they might assume.
“Homeowners should be walking away in droves,” according to White. “But they aren’t. And it’s not because the financial costs of foreclosure outweigh the benefits.” Sure, credit scores get whacked when you walk away, he acknowledges. But as long as you stay current with other creditors, “one can have a good credit rating again – meaning above 660 – within two years after a foreclosure.”
Better yet, you can default “strategically”: buy all the major items you’ll need for the next couple of years – a new car, even a new house – just before you pull the plug on your current mortgage lender.
“Most individuals should be able to plan in advance for a few years of limited credit,” says White, with minimal disruptions to their lifestyles.
What kind of law school professorial advice is this? Aren’t mortgages legal contracts? In an interview, White said that in so-called anti-deficiency states such as Arizona and California, mortgage lenders have limited or no legal rights to pursue defaulting homeowners’ assets beyond the house itself. In other states, lenders may decide it is not worth the legal expense to pursue walkaways, or consumers may be able to find flaws in the mortgage documents, disclosures or underwriting to challenge the original contract.
The main point, he says, is that too often people’s “emotions” get in the way of clear financial thinking about mortgages, turning them into what he calls “woodheads” – “individuals who choose not to act in their own self-interest.” Most owners are too worried about feelings of shame and embarrassment following a foreclosure, and ignore the powerful financial reasons for doing so.
Buttressing these emotions is a system that White labels “the social control of the housing crisis” – pressures and messages continually sent to consumers by the “social control agents,” namely banks, government and the media. The mantra these agents – all the way up to President Obama – pound into owners’ heads, says White, is that “voluntarily defaulting on a mortgage is immoral.”
Yet there is an inherent imbalance in the borrower-lender relationship which makes this morality message unfair to consumers: Banks set the rules during the housing boom, handing out home loans with no down payments, no income checks, and inflated appraisals. Now that property values have dropped 20 percent to 50 percent in many areas, banks have been slow to modify troubled mortgages and reluctant to reduce principal debts.
Only when homeowners cut through the emotional fog and default strategically in large numbers, White argues, will this inequitable situation be seriously addressed.
Better Foods Deli has the best Hot Pastrami sandwiches on the planet! It’s lean! Always warm. The flavors melt in your mouth.
On Wednesdays another treat is available… Pulled-Pork Sandwich! You have to get to Better Foods Deli early on Wednesday (before noon) because they run out quickly!
Both sandwiches are around $6. And, If they run out of pork and somehow run out of pastrami, a great back-up is the Antipasto sandwich. It’s the bomb as well!
Better Foods deli has been a staple of Roseville since 1970. It’s definately a Hot-Spot for deli sandwich lovers and old-time Roseville residents.
The Family Restaurant is a family owned place. They serve hearty food at a very reasonable price. This is definitely a non-chain restaurant that has a “come as you are” feel to it. Most people go for breakfast, but I think the real prize is the teriyaki lunch-box special. This combo comes with a serving of teriyaki chicken, rice, side salad, and 2 fried prawns. I’ve been ordering it for so long, I don’t even know the cost. But I know it’s cheap! If you decide to order the lunchbox combo don’t bother looking at the menu. It’s not listed. I’m not sure why? I happened to run across this restaurant years ago, with a buddy of mine who swore up-and-down that the lunchbox combo was one of the tastiest lunches in all of Roseville. He was right!