One for One.

I am so often inspired by other people. The story of TOMS shoes is definitely an inspriring one. I have no real connection to this company, other than an absolute belief in giving back. At Garman Realty, we believe in giving back too. It is one of the core values of our company.

Our tagline is "Give it Back." Their tagline is "One for One." Welcome to the revolution.

My New House

I have said it time and time again...I truly believe now is a GREAT time to buy a home. So guess what? We did! We just bought a new home in Renaissance Park, a Wakefield Development community just south of Downtown Raleigh. The home was built by Standard Pacific Homes and the whole experience was great...from the sales agent Scott, to the construction manager Frank, to the lender Michelle. Top notch!

What's the deal with the $8000 tax credit?

Disclaimer: While this post should, in no way, replace the sound advice of a tax advisor or CPA...it should answer some of your initial questions about the $8000 first time home buyer tax credit. Enjoy!


1. What’s this new homebuyer tax incentive for 2009?
The $7,500 repayable credit introduced in 2008 is increased to $8,000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8,000 amount. If the house costs less than $80,000, the credit will be 10 percent of the cost.

2. Who is eligible?
Only first-time homebuyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.

3. Is there an income restriction?
Yes. The income restriction is based on the tax filing status the purchaser claims when filing his/her income tax return. Individuals filing Form 1040 as single (or head of household) are eligible for the credit if their income is no more than $75,000. Married couples who file a Joint return may have income of no more than $150,000.

4. Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefit of the credit?
Not always. The credit phases out between $75,000-$95,000 for singles and $150,000- $170,000 for those married and filing jointly. The closer a buyer comes to the maximum phase-out amount, the smaller the credit will be. The law provides a formula to gradually withdraw the credit. Thus, the credit will disappear after an individual’s income reaches $95,000 (single return) or $170,000 (joint return).

5. Are there restrictions on the location of the property?
Yes. The home must be located in the United States. Property located outside the U.S. is not eligible for the credit.

6. Are there restrictions related to the financing for the mortgage on the property? In 2009, most financing arrangements are acceptable and will not affect eligibility for the credit. Congress eliminated the financing restriction that applied in 2008.

7. How do I apply for the credit?
There is no pre-purchase authorization, application or similar approval process. All eligible purchasers simply claim the credit on their IRS Form 1040 tax return. The credit will be reflected on a new Form 5405 that will be attached to the 1040. Form 5405 can be found at http://www.irs.gov/.

8. So I can’t use the credit amount as part of my downpayment?
No. Congress tried hard to devise a mechanism that would make the funds available for closing costs, but found that pre-funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction.

9. What if I purchase later this year but can’t get to settlement before Dec. 1?
The credit is available for purchases before Dec. 1, 2009. A home is considered as “purchased” when all events have occurred that transfer the title from the seller to the new purchaser. Thus, closings must occur before Dec. 1, 2009, for purchases to be eligible for the credit.

10. I know there is no repayment requirement for the $8,000 credit. Will I ever have to repay any of the credit back to the government?
One situation does require a recapture payment back to the government. If you claim the credit but then sell the property within 3 years of the date of purchase, you are required to pay back the full amount of any credit, including any refund you received from it. A few exceptions apply. Note that this same 3-year recapture rule applies, as well, to the $7,500 credit available for 2008. This provision is designed as an anti-flipping rule.

11. What if I die or get divorced or my property is ruined in a natural disaster within the 3 years?
The repayment rules are eased for many circumstances. If the homeowner who used the credit dies within the first three years of ownership, there is no recapture. Special rules make adjustments for people who sell homes as part of a divorce settlement, as well. Similarly, adjustments are made in the case of a home that is part of an involuntary conversion.

Have a question of your own? Email me at zachschabot@garmanrealty.biz!

Little Moments...BIG magic!

Zach, I am so glad to hear of your continued passion for the mission of Big Brothers Big Sisters. Andie and I conferred this morning after your email and she spoke very highly of you. I am sending this response as her regards as well. If you have taken a good walk through our website (as it appears you have) you will notice a lot has changed over the recent years.

Just six years ago we were serving less than 100 children such as Torian. Today we serve over 1,100 each year and are on target to serve approximately 2,000 annually in the next 3-5yrs. We currently see more and more of our community’s vulnerable children and their families reaching out to us for help – guidance – and the caring support of a mentor. Today we have over 200 children on our waiting lists and in challenging economic times more single moms and struggling families are reaching out to us for support. Your continued support and pledge of $100 for every transaction this year will go a long way to help our efforts to reach these children and provide a variety of activities for them through out the year. If we could help you further your efforts in anyway please do not hesitate to ask. I would love to talk to you further to explore if there are any opportunities to encourage similar efforts throughout Garman Realty and partner with Garman on a larger level.

Again thank you very much for your role as a Big in Torian’s life, and for your support of our on-going efforts to reach more children in need.

- John Tedesco, VP of Development

Big Brothers Big Sisters of the Triangle

Garman Difference #3: Give it Back

One of the most imortant Garman Differences is what we call "Give it Back." Here is a story about how I would like to give it back.

I first became involved with Big Brothers Big Sisters of the Triangle in 2001. I was a "Big" for my "Little" Torian. When I first met Torian, he seemed very shy and very quiet. He and his mom had recently moved to NC from NY so he didn't know many people. I had a similar situation when I moved here from NY so I could relate.

The first few meetings were tough. I had to painfully pull conversations out of him as we got to know each other. BUT all it took was one mention of NBA basketball or WWE wrestling...and the kid came out of his shell! He was like a new person. I saw excitement and confidence, and he knew every thing about every one. It was tough to keep up! We spent a couple hours together each week and became great friends.

Unfortunately, we have not kept in touch as much as I'd like. Torian's mom got remarried and he has a wonderful new support group. I also have two children of my own so our time together has been limited. I miss him very much but I will never forget one event that will stay in my mind forever. When Kate and I got married in 2003 we had a very "interactive" wedding that involved lots of friends and family. We asked Torian to be a part of the procession and carry the bible into the church in front of our priest. He happily accepted our inivtation. He went from being a shy child to a young man who was confident enough to be the center of attention in a room full of adults. It was inspiring.

That inspiration has led me to choose Big Brothers Big Sisters of the Triangle as my "give it back." I have pledged to donate $100 of every transaction in 2009 to the local chapter- so more kids like Torian can inspire grown-ups like me.

Garman Difference 3#: Give it Back

Garman Difference #2

About 8 years ago I took my first trip to Las Vegas with my wife Kate. She was working for Jack Daniels and was there on a business trip during the NFR (National Finals Rodeo). This was my first taste of being treated like a rocktar! Our good friend Jenn Smith was the marketing manager for Jack Daniels in Las Vegas. Thanks to Jenn, every place we went treated us like rockstars. No waiting in line, free drinks, private tables, exclusive clubs...the works. I felt like I was being treated just a little bit better than everyone else.

This exemplifies Garman Difference #2: Rockstars Wanted.

This is probably the most complex of the 4 differences. First, if you work for a Garman company, you are a rockstar. You have a great attitude, you make people feel great, and you work hard. (the trashing of hotel rooms and bowls of m & m's with no green ones is just a myth). BUT, the attitude is contagious because all of our partners are also rockstars (lenders, attorneys, inspectors, appraisers). We will not tolerate negative attitudes or poor work. However, the most important part of the equation is our clients. We want them to feel like they get the royal treatment every step of the way. Whether they are buying a home or selling a home, they get the rockstar treatment.

Garman difference number 2: Rockstars Wanted. It's the blue square.

Garman Difference #1

In only my second day with Garman Realty I am learning that one question is on everyone’s mind…even if they don’t ask me. So here is the answer.

I joined the team as a member of Garman REALTY. I will be helping people buy and sell homes just like I did when I was at RE/MAX. However, Garman HOMES is a building company and focuses on new homes. BUT- one of the huge benefits of being associated with Garman HOMES (the building company) is the G-Team! I have access to one of the finest group of trades people in the Triangle. They pride themselves on doing great work and treating people like Rockstars! The G-Team can help get your house ready to list or help make repairs after inspections. Listing your home can be stressful but our goal is to make life as easy as possible while your home is on the market.

Having the G-Team is awesome…and it is known as Garman Difference # 1. For those of you keeping score at home- that’s the green box in the logo. Check it out.