Jason Frey's Montana Real Estate: Bozeman Luxury

Friday, September 17, 2010

Homebuyer tax credit: 950,000 must repay - Reposted by Jason Frey

NEW YORK (CNNMoney.com) -- Nearly half of all Americans who claimed the first-time homebuyer tax credit on their 2009 tax returns will have to repay the government.

According to a report from the Inspector General for Tax Administration, released to the public Thursday, about 950,000 of the nearly 1.8 million Americans who claimed the tax credit on their 2009 tax returns will have to return the money.

The confusion comes because homebuyers were eligible for two different credits, depending on when their homes were purchased.

Those who bought properties during 2008 were to deduct, dollar for dollar, up to 10% of the home's purchase price or $7,500, whichever was less. The catch: The money was a no-interest loan that had to be repaid within 15 years.

Had they waited to buy until 2009, they could have gotten a much sweeter deal. Congress extended the credit and made it a refund rather than a loan.

Now, the IRS is developing a strategy for separating the 2009 taxpayers who are required to repay the credit from those who are not.

A review by the Inspector General earlier this year found that the IRS could not easily distinguish between home purchases made in 2008 and 2009. That heightened concerns that some claims could be erroneous or even fraudulent, that buyers could, for example, claim their purchase came later than it actually occurred.

Thursday's release reported that 73,000 claims, more than 4% of the 1.8 million homebuyers who received the credit, had incorrect purchase dates recorded by the IRS.

Some of the inaccuracies counted against the taxpayers, Nearly 60,000 were listed as purchasing in 2008 (meaning they had to repay the credit) or had no purchase dates at all, rather than their correct 2009 purchase dates, which would free them of the obligation to pay it back.

It is also taking a look at all those deceased taxpayers who received credits.

The inspector general reported that 1,326 single people listed as dead by the Social Security Administration claimed more than $10 million in credits. The IRS threw out 528 of those 1,326 claims, saving $4 million.

All best,
______________________

Jason Frey

Agent

PureWest, Inc.

A Christie’s Great Estates Affiliate

Bozeman, Montana 59715

jason.frey@purewestproperties.com

http://www.linkedin.com/in/jasonfreylifewideopen

www.PureWestProperties.com

Tuesday, September 7, 2010

Family Hike to History Rock by Jason Frey

I had the opportunity this past weekend to take a morning and enjoy it with my family, which is something we do not get to do as often as I would like. My wife and I currently have two children, our son is almost 4, our daughter is 18 months, and we are expecting #3 in December. We are not crazy but, if the family continues to expand at this rate we may be soon. Spare time is at a premium and enjoying it all together is rarer still. So when the opportunity arose for a family hike we were all excited. As I have said previously, the most difficult part of recreating in the Bozeman area is choosing what to do and where to do it. The possibilities are as near endless as it gets. My wife and I are stealing an idea from my cousin Seth and his wife Brooke, we are taking 52 hikes in the Bozeman area and writing each of them on a playing card. When it comes time to choose a path, we simply choose a card and head out, it makes the selection process much easier and when we have done the first 52 we can add, cull, supplement our favorites and re-shuffle.

History Rock is a short, 2.4 mile loop that begins a short distance below Hyalite Reservoir in the Gallatin National Forest. The name of the hike is derived from a large limestone rock poised along the trail that has had a number of names scribed into it over the years. According to our hiking book there are names on the rock that date back into the 1800's from hunters and settlers in the area. The hike starts from a well maintained parking area and crosses a large meadow before heading up into the lodgepole pine forest. The trail shadows a small creek for most of the way and the sound of water can be heard from multiple locations along the trail.

We started out just after 9:30am so the wildlife activity was not as high as I would have liked but we had a great time pointing out different animal tracks in the moist trail. My son is enamored with all types of wildlife and asked a never-ending string of questions about each track. Why did the horse have shoes on? Why are elk toes pointed? Are coyotes really like dogs? Can I step in that? He also saw a "really big bird" when running ahead of us and, sure enough, when we caught up with him there was a large owl stirring about 20 feet up in the pines.

Our youngest grew tired of being ported along in the luxury of our kid-carrying backpack and insisted on walking for a portion of the trail. This forced us all to slow down a little, we all took a little deeper sniff of the roses, feeling the warmth of the late summer sun cutting through the cool of the trees. We came across one other hiker along the trail, a older gentleman who looked to be in his late 60's or early 70's. We stopped and exchanged pleasantries, he commented on the beauty of the morning and commended us for getting the whole clan out and about. I told him we could not bear to waste the morning, and had to get out on the trail. He looked wistful as he talked of his children and grandchildren's adventures on the very trail that we were following and encouraged us to keep at while we could. "Times go fast", he said, "and before you know it, you'll be out here alone."

We continued on, upon reaching our destination, we took a few minutes to crawl on the rocks, gather moss and pine cones so when we clean out the car in a month or two there is something more to remind us of the morning, snap some photos, then began our return to the trailhead. After getting back we loaded up and headed about a mile farther up the canyon to the reservoir for a picnic lunch and quick splash on the boat ramp.

The hike took about 2 hours round trip, adults without kids or with older children would probably be able to complete the loop in closer to one hour. It was time well spent and we look forward to drawing another card soon.