Posts Tagged ‘tax credit’

The New Homebuyer Tax Credit Clock is Ticking Down: Have you Taken Advantage of it yet?

Monday, October 26th, 2009

For those new homebuyers on the fence about purchasing their first Fate home, the new homebuyer tax credit may be just what they need to motivate them to become a first-time homebuyer.

For many, the November 30 deadline to take advantage of the new homebuyer tax credit is quickly approaching, so it’s a race for the clock to snag their hefty tax credit.

The new homebuyer tax credit, which is eligible to most home buyers who have either never owned a home, or who have not owned a home for at least two years, equals 10 percent of the purchase price of a home, up to $8,000.

However, those individuals making more than $75,000 (or $150,000 for a couple) will likely not be eligible for this tax credit.

Surge of New Home Sales among First-Time Buyers

Many industry experts have seen the housing market take off over the last, several months, thanks in part to new homebuyers taking advantage of the new homebuyer tax credit. And the industry hopes to see a final surge of sales as the November 30 deadline looms.

Many industry experts are recommending that new homebuyers close no later than the third week of November to ensure that their purchase is finalized before the deadline.

Many home purchases can take up to two months to complete, in which case the tax credit would not be valid. However, if a new homebuyer can get the process moving in about a month, they will likely slide in there to snag the tax credit. In other words, new homebuyers now have a very small window of time to get in on this government tax credit.

New Proposals in the Works

For those first-time homebuyers who can’t make the deadline, there has been talk about extending the deadline, although there has not been any definitive word yet about this.

Some of the proposals being considered would extend the credit into next year, while others are aimed at offering the tax credit to all home buyers or raising the credit up to $15,000, with no income restrictions.

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Have you Taken Advantage of the $8,000 Home Buyer Tax Credit Yet?

Friday, June 19th, 2009

The home buyer tax credit, which is part of the American Recovery and Reinvestment Act of 2009, is a federal program designed to encourage Americans to purchase their first home.

This program, which continues until December 1, 2009, can make a big difference for many first-time home buyers. Imagine what $8,000 can do for you! This dollar-for-dollar tax credit is an incentive designed to encourage the rebound of the economy, and it may very well be the incentive you need to purchase your first Highland Park home!

Like any other federal tax incentive, however, there are a few terms and conditions of this new home buyer tax credit:

  • The tax credit is only for first-time home buyers. However, the IRS recognizes anyone that has not owned a primary residence over the last three years to be a first-time homebuyer.
  • The tax credit is equal to 10 percent of the home’s purchase price. However, the maximum dollar amount given through this program is $8,000.
  • Only those single taxpayers making less than $75,000 and those married taxpayers making less than $150,000 qualify for the tax credit. There is a reduced tax credit available for individuals who do not meet this income requirement; however, those single taxpayers that make more than $95,000 and those married taxpayers that make more than $170,000 are not eligible to receive any money through this incentive program.
  • The closing date on your home must be on or before December 1, 2009 to be eligible for the full tax credit. Unlike the tax credit enacted by Congress in 2008, the $8,000 tax credit does not have to be repaid.
  • To apply for your $8,000 tax credit, simply claim it on your year-end federal income tax return.
  • Only homes that are used for a primary residence are eligible under this tax credit incentive program.

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