The economic stimulus package approved by Congress has a wonderful treat for first time homebuyers who move swiftly. Those who wait til next year will be too late.
The good news for people considering buying their first home is not only are prices very low this year, additionally they may be eligible for an $8,000 tax credit from IRS! The tax credit does not have to be repaid as long as the buyer stays in the home for a minimum of 3 years. It seems unbelievable but if your total tax liability is less than $8,000 you may be able to receive a tax refund.
There are stipulations in order to qualify. First of all the home must be purchased between January 1, 2009 and December 1, 2009. Note that is December 1st, so you do not have until the end of the year. Also the sale must be closed during this time frame. A normal purchase or a purchase of a bank owned home can usually close in one month. If you are thinking of buying a short sale home, be aware that it can take 3 months for a response on an offer. So buyers should start looking several months before they actually think they can close the transaction.
The actual tax credit is 10% of the purchase price up to $8,000. There are income limits for qualification. Single taxpayers Modified Adjusted Gross Income (MAGI) must be below $75,000, and married couples below $150,000. If your income level is higher you may qualify for a lower amount of tax credit.
If you have any questions about the tax credit, talk to your tax professional. Some resources for more information are provided by the National Association of Realtors http://www.realtor.org/wps/wcm/connect/599a64804d24c83d931ff726a9949436/government_affairs_homeb_tax_cred_qa.pdf?MOD=AJPERES&CACHEID=599a64804d24c83d931ff726a9949436 the National Association of Home Builders www.FederalHousngTaxCredit.com and by the Internal Revenue Service http://www.irs.gov/newsroom/article/0,,id=187935,00.html.
Lorraine Burch, REALTOR
Your Friend in Real Estate
Avalar Real Estate Services
Lorraine@AvalarinClermont.com
www.HomesCentralFL.com
Phone: 407-267-3268
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