Clock Ticking on $8,000 Tax Credit September 16th, 2009
Time is running out for homebuyers, who must close by November 30, 2009.
The tax credit, available for first-time homebuyers, as well as to individuals who have not owned a principal residence in the 3-year period prior to purchase, expires November 30, 2009. That means that home loans closed past that date will not qualify.
Since it generally takes a couple of weeks to negotiate a purchase, then 30 to 45 days to close on a loan – with more stringent appraisal and disclosure requirements adding more time to the closing process – it is crucial that those wanting to take advantage of the incentive realistically select a home by mid-October to meet the deadline.
“This incentive has brought the dream of homeownership to literally thousands of individuals and families,” said Ron Peltier, chairman and CEO of HomeServices of America, “but time is running out, and there are not guarantees at this point that congress will extend the program.”
“New homeowners have accounted for approximately one-third of recent home purchases,” adds Gene Brake, CEO of HomeServices of Nebraska and Woods Bros Realty, “so clearly the program has been wildly successful. But like all good things, there is an end, so don’t miss a chance to take advantage of this once-in-a-lifetime opportunity.”
The tax credit is available for homes purchased before December 1, 2009. Single-family, townhomes, or condominiums qualify for the tax credit, provided that the home is used as the principal residence. This also includes new construction homes if occupied by December 1, 2009.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
This new tax credit can help ease the transition and help cover the new expenses that come with home ownership. The tax credit does not have to be repaid, as long as buyers stay in their new home for at least three years after purchase. IRS Form 5405 gives all the details and as always, consult with your personal tax advisor.
For more information, contact us at (800) 535-4707 or visit www.WoodsBros.com.
Posted by Woods Bros Realty