If you are a first- time home buyer, or have not purchased a home within the past 3 years, the deadline for taking advantage of the $8,000 tax credit ends on November 30, 2009. (It is actually the lesser of either 10% of the home cost or $8,000). Why I am telling you this? Simple. Why would you not want to take advantage of this home buyer tax credit offer if you have the means? I personally feel like they should have given everyone a tax credit for purchasing a home, but I will address that when I run for office. Ha…
Who is eligible to receive this tax credit? As I mentioned, as long as you have not owned a home within the past 3 years, you are eligible. In addition, the buyer cannot have an adjusted income of over $75,000. If the adjusted income is over $75,000 and does not exceed $95,000, then the home buyer is will receive a reduced tax credit.
How does this tax credit really work? Well….let’s say you owe $3,000 on your taxes for 2009. If you purchased a new home prior to December 1, 2009 (thus meeting the deadline), the IRS will give you the difference. Yes, they are going to cut you a check for $5,000! Is this a no-brainer or what? With interest rates at an all time low I am urging all first-time home buyers to get pre-approved and buy, buy, buy! You will be thanking yourself in 3 years when everything has turned around with the housing market.
Not only is the first-time home buyer going to benefit from this, but the market will hopefully see inventory lowered, buyer sentiment improved, and overall economic recovery heading in the right direction.
Please visit this site for more information on the $8,000 Tax Credit.