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Proposing Tax Credits for Home Buyers and Sellers?
March 2024 Update
Nathan Udomsri
March 15, 2024
Tax Credits for Homebuyers and Sellers
On March 7th during the State of The Union speech, a bill was proposed to provide tax credits for Home Buyers and Home Sellers.
🔑 $10,000 Tax Credit for Home Buyers: The tax credit will span 2 years ($5,000 each year). This will apply to First Time Home Buyers, which is defined by having a 3 year gap between owning a home. There are income limits that are in this proposal.
💰 $10,000 Tax Credit for Home Sellers: The one year $10,000 tax credit being proposed will help families who sell their starter home to another owner occupied buyer. There more than likely will be a sales price limit.
🧭 This is a proposal, so it’s not set in stone! However, I would say housing affordability is a very hot topic locally and nationally. We’ll keep you updated when more information is published.
The Federal Reserve is meeting March 19th-20th, and you guessed it! I will be reading through press conference with a coffee ☕, so you don’t have to.
Thank you again for your support. It means the world to me 🌎
Talk soon,
Nathan
👇️ PS - More Below
Asset Utilization Loans
💼 Fancy word for being able to use the money saved up as income. Depending on the type of account you have (Checking and Savings, Stocks, Retirement, etc), will determine how much can be used for the lenders income calculations.
🙌 Who is this for? Someone who has a lot of money in stocks, retirement or invested in general. You actually don’t need to sell any of your funds to use the income. This also helps someone who just needs a little more income for qualification purposes. On the other spectrum, we’ve seen this help retired families where they have a lot of money saved up, but their income lowered since retirement.
Tax season is almost to an end (assuming you didn’t do an extension). This tip will save you a ton of headache if you’re planning on buying within the next 2 years. If you have a rental property, I would make sure your Fair Rental Days is as accurate as possible. Reach out to me if you have specific scenarios because it’s always best to be proactive rather than reactive
📐Why is this important? Educational Example below
Let’s say a rental property brought in $12,000 in rent (after expenses). What if the tax returns show 12 months under Fair Rental Days. The calculated income would be $1,000/mo.
However, what if in reality it was only available for 6 months? The calculated income would be $2,000/mo.
I started the renovation process on the property I bought last month 🏡. Also, I have become a Ninja CREAMi, a blender that makes ice cream, connoisseur in the past month 🍨 and recommend anyone with a sweet tooth to buy one!
🎉🎂 We celebrated my grandma’s 100th birthday a week ago! We got her a card that had some fun facts about 1924, which I thought would be fun to share with you. The average income per year was $1,300 ~ inflation is real! Also, a very popular candy during that time was Dubble Bubble Gum. Cheers to many more Nana.