You or someone you know may qualify for the New Government tax credit if you buy a home this year, but before December 2009.
Yes, it is for First Time Homebuyers, but many do not realize that it ALSO includes anyone who has not owned a home in the last 3 years!
How Much will you Get?
Up to $8,000 additional money back the next time you file your taxes! Technically it is at $8000 or 10% of the purchase price, so whatever is the lesser amount.
Does this money have to paid back?
Not under this new legislation. The tax credit they offered in 2008 was $7,500 but also had to paid back over several years. This new tax credit for $8,000 does NOT have to paid back, UNLESS you move out of the home within the first 3 years.
So be sure you or anyone you know who is claiming the tax credit is aware of that fact.
How much will you get back come tax time?
It Depends. If you normally get back money at tax time because you have overpaid the government that year, you should get the amount back plus the $8,000, so it could be a great year for you to get back on track financially.
If you normally pay money back at tax time, this amount will be deducted from the $8,000 credit.
Are there any other restrictions to get this Tax Credit?
Yes, it also depends on your income. For singles, you must make less than $75,000 a year, and couples must make less than $150,000 to qualify for this credit.
When do I get the money?
Sooner than you might think. If you just bought a home or you are planning buying one this year, you can file an amended 2008 tax return. So if you close on a home next month, but you already have done your 2008 taxes, you can have your accountant re-file an amendment to get the credit much earlier!
Does this credit help first time buyers qualify for a loan?
No, first time home buyers still have to qualify the same way as before, or if they need a down payment they still need to raise those funds. They can not use the credit as their down payment.
What will this new tax credit do to the real estate market?
Well it will certainly get those who qualify to move off the fence and look to purchase this year. This will have somewhat of a domino effect, as home sellers who have been trying to sell to move up into something bigger or nicer, might get that chance if more entry level homes are purchased this year.
However, this tax incentive does nothing for making it easier to qualify for a home loan, so it is not expected to cause a huge surge of buying activity alone.
If you or someone you know is interested to see if they qualify for this tax credit, and for a home loan, THEN CALL ME TODAY. I can help anyone who is anxious to take advantage of this great opportunity. Even if you are concerned that you will not qualify, I can still help. Go ahead and call me at 208-287-6589.
Mike Turner
Managing Broker and Owner
Turner Real Estate Group
(208) 287-6589
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