First Time Homebuyer And The $8000 Tax Credit ***EXPIRED APRIL 30, 2010 *** Great opportunity: right now interest rates are almost at their lowest levels ever with 30 year mortgage rates around 5%, and second, the $8000 Tax Credit Programfor First Time Homebuyers is out. Below is a quick little report that outlines the big value of this program because I want you and those you care about to know how to take advantage of this opportunity. Three Quick Qualifications: 1. Who qualifies as a first time homebuyer? Purchaser (and purchaser’s spouse, if married) may not have owned a principal residence in 3 years previous to purchase. 2. Income Limits: Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on joint return.*) Partial tax credits may be available for individuals with incomes over $75,000 but under $95,000, and couples with incomes over $150,000 but under $170,000. * If married couples file separately they can both claim 5%, or up to $4000. 3. Effective Dates: Purchases on or after January 1, 2009 and before December 1, 2009. EXTENDED TO APRIL 30, 2010. Other Things To Know: 1. Free Money or Payback? The tax credit does not have to be paid back as long as the home owner occupies the home for 36 months. 2. Tax Credit or Deduction? It’s a credit, so you actually get the money – it comes back to the buyer. Deductions on the other hand are subtracted from the gross income before tax is calculated. 3. $8000 or 10 percent? You can get up to 10% of the home’s value and then it caps off at $8000 – so any homes worth more than $80,000 means you get the maximum.
4. Filing 2008 or 2009? Both. You can apply for the Tax Credit for your 2008 tax statement or 2009, so if you buy now and file it on your 2008 statement, you can get the tax credit right then. 5. If No Purchase? If you take the credit, and don’t buy before November 30,2009 you will owe the IRS the money – so plan ahead.
6. What To Do Next? Timing is important... Call me TODAY… LIVE THE AMERICAN DREAM Alice French, REALTOR®
Alice French Real Estate Broker-Owner, CRS, Master GRI (812) 322-2622 |