Tax Stimulus and Housing Explained
With interest rates at historic lows and home prices extremely attractive, this is the time for all home buyers to get off the fence and get started! The great news for first-time home buyers—if not for you, perhaps your family and friends—is the Federal Stimulus Bill of 2009. Don’t delay any longer if you are seriously interested in finding your dream home. While some speculate that prices may slightly drop further, the home of your dreams may be purchased by someone quicker to make that move. And, when interest rates begin to creep up again, any small savings in price will evaporate quickly. There is a rare combination of opportunities right now that offer you the deal of a life time!
Although you should direct any questions to the expert, your accountant, here is a brief summary of the Federal Stimulus Bill of 2009:
1. Up to $8,000 for new buyers: A tax credit of 10 percent of the purchase price of the home, capped at $8,000, which applies only to first-time home buyers of principal residences. Many people don’t realize that a credit is worth much more than a deduction, so ask me if you don’t know about this. And the credit does NOT have to be repaid under ordinary circumstances—a change from the previous tax credit.
2. “First time buyers” defined: For the purpose of this legislation, a “first-time home buyer” is someone who has not owned a principal residence during any of the three years prior to closing on a house now (determined by deed transfer dates). This also means that if you’ve owned an investment or vacation home but not a principal residence within the past three years, you still qualify for the credit!
3. 2009 home buyers only: Only those who purchase and close on a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year or waits until next year won’t be able to take advantage of it.
4. Income limits: The tax credit is subject to income limitations. A modified adjusted gross income limit of $75,000 for single buyers or $150,000 for married couples. Those earning more than these limits may be eligible for reduced credits.
5. Refundable: Because the tax credit is “refundable,” which means the tax payer gets the savings even if not off-set by their tax liability, they may actually get a check from the government! And, those buying a house this year who haven’t yet filed their 2008 return can take the credit this year, and don’t have to wait until they file for 2009!
6. Recapture: Buyers must own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions may be made in certain cases, such as death or divorce.)
Don’t let this opportunity pass you or your loved ones by. Contact us immediately to take advantage of this historic home buying opportunity, whether the rare combination of low home prices together with low interest rates, or with the added advantage of the tax credit. The sooner we start, the sooner you benefit. Call us today!
Connie Shuping and the Great Triangle Homes Team
www.GreatTriangleHomes.com (919) 306-9080 or (919) 270-2346
