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7 Days Until Tax Credit Deadline!

by Alan Daniels
google map to real pro systems

Homebuyers have been coming from everywhere to meet the fastly approaching April 30th deadline for the tax credit.  $8,000 for qualifying first time home buyers (haven't owned in last 3 years) and $6,500 for repeat homebuyers (owned current home for at least 5 years).  Nearly half of the homes sold in March were purchased by first time home buyers according to a survey done by Campbell/Inside Mortgage Finance.

There is still time to take advantage of this credit!  You will need to be under contract on a home by Friday, April 30th and close before the end of June.  Contact us for more details.   

Home Buyer Tax Credit Expires Soon

by Alan Daniels

First Time Homebuyer Tax Credit

The Countdown Continues! 

The $8,000 first time home buyers tax credit ends November 30.  There is still time to close if you are eligible for the tax credit.  Contact your Realtor to discuss your plans of closing before the expiration date.

 

Home Buyer Tax Credit!

by Alan Daniels

Home Buyer Tax Credit | Colorado Springs Real Estate

It is definitely a great time to buy a home!  Home prices and interest rates are at historic lows which leaves open even more opportunities as a home buyer.  Now the government has added an $8,000 tax credit to all qualified home buyers who have not owned a principle residence in the last 3 years.  Home affordability is now drawing renters into a home of their own.  Here is a chart that outlines the tax credit. 

If you do not qualify for the credit you can still take advantage of low home prices and interest rates along with a larger inventory of homes to chose from.  Start your search now to see for yourself

Home Buyer Tax Credit

FEATURE

CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008

REVISED CREDIT- EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 & BEFORE DECEMBER 1, 2009

Amount of Credit

Lessor of 10% of cost of home or $7500.

Lessor of 10% of cost of home or $8000.

Eligible Property

Any Single Family Residence (including condos, co-ops, townhouses) that will be used as a principle residence.

No Change.  All principle residences eligible.

Refundable

Yes.  Reduces (or can eliminate) income tax liability for the year of the purchase.  Any unused amount of tax credit refunded to purchaser.

No Change.  Purchasers will continue to receive refund for unused amount when tax return is filed.

Income Limit

Yes.  Full amount of tax credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return).  Phases out above those caps ($95,000 and $170,000).

No Change.  Same income limits continue to apply.

First Time Home Buyer Only

Yes.  Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years previous to purchase.

No Change.  Still available to first time purchasers only.  Three year rule continues to apply.

Revenue Bond Financing

No credit allowed if home financed with state/local bond funding.

Purchasers who utilize revenue bond financing can use credit

Repayment

Yes.  Portion (6.67% of credit or $500) to be repaid each year for 15 years starting with 2010 tax filing.

No repayment for purchases on or after January 1, 2009 and before December 1, 2009.

Recapture

If home sold before 15 year repayment period ends, then outstanding balance of repayment amount recaptured on sale.

If home is sold within three years of purchase, entire amount of credit is recaptured on sale.  Applies only to homes purchased in 2009.

Termination

July 1, 2009  (But note program changes in 2009)

December 1, 2009

Effective Date

Purchases on or after April 9, 2008 and before January 1, 2009.  Repayment to begin for 2010 tax year.

All revisions are effective as of January 1, 2009

**This information is a brief overview about the home buyer tax credit and should be confirmed with the latest tax code and your accountant.

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