February 17th, 2009
Although it was not exactly what prospective homebuyers were hoping for it is still a fantastic opportunity for some. As part of the new American Recovery and Reinvestment Act that was signed today by President Obama, first- time homebuyers who buy between January 1, 2009 and November 30, 2009 are eligible for a tax credit of up to 10% of the purchase price of a home up to $8,000. This tax credit can be applied to the buyers 2008 or 2009 taxes.
Unlike The Housing and Economic Recovery Act of 2008 this is a true tax credit that applies to primary residences and will not have to be repaid provided the home is retained for three years. In essence the tax credit it is applied as a full dollar amount to your tax bill or refund. It does have income limits of $75,000 for individual filers and $150,000 for joint and you must be a U.S. Citizen.
In addition to the $8,000 tax credit, first-time homebuyers have low interest rates and plentiful inventory of homes to choose from. It is a wonderful time to buy!
http://money.cnn.com/2009/02/13/real_estate/homebuyer_tax_credit_finalized/index.htm?postversion=2009021712
Tags: 8000 tax credit, government, homebuyers, house, Obama, real estate, recovery, reinvestment act, sellers, senate, stimulus
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February 6th, 2009
Buying a home in 2009 could become even more appealing.
Last summer The Housing and Economic Recovery Act of 2008 was passed and was geared at stimulating the sagging housing market. If you were a first time homebuyer, meaning you could not have owned a home for three years prior to your purchase, bought a home between April 8, 2008 and June 30, 2009, fell within specific income requirements and were purchasing a main residence you could be eligible for up to a $7,500 tax credit. The tax credit according to the IRS website functions like an interest- free loan that is to be paid back over a 15 year. The qualifying tax payer would be able to deduct 10% of the purchase price of the home up to $7,500 and receive a reduction in their tax bill or increase their tax refund by the whole dollar amount. The tax payer would then begin paying back the credit 1/15 of the credit amount over a 15 year period. (Go to www.irs.gov for details) This provides a wonderful opportunity to those who meet these requirements.
Fast forward, if you would, to Wednesday of this week. Congress has approved an amendment to the economic stimulus package that would provide an up to $15,000 tax credit to all who purchase a home in the coming year. The credit would be equal to 10% of the purchase price or $15,000, whichever is less. Unlike the $7,500 tax credit this as proposed would not need to be paid back. It would still only apply to the purchase of a primary residence and you would need to occupy the home as such for two year but at present does not have an income stipulation.
If the Stimulus Bill passes including the home buyers tax credit amendment, it will provide homebuyers in 2009 an opportunity to get a $15,000 tax credit. It’s not law yet, but if the economic Stimulus Bill passes as it is currently written, combined with historically low interest rates and loads of inventory, homebuyers and sellers may have something to cheer about in 2009.
http://realestate.msn.com/article.aspx?cp-documentid=17198334
http://www.irs.gov/newsroom/article/0,,id=186831,00.html
http://isakson.senate.gov/press/2009/020409housing.htm
Tags: 15000 tax credit, government, homebuyers, house, Obama, real estate, sellers, senate, stimulus
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