Too Scared To Buy A Home In This Economy? Well, This Is The Perfect Time To Do So.

The news is this tax credit has been extended through June for first time home buyers and pre-existing homeowners who wish to purchase a new home.
By: Pillar Property Group
 
Dec. 30, 2009 - PRLog -- “This clearly is a rush of first-time buyers not wanting to miss out on the tax credit that was to end in November,” said Lawrence Yun of the National Association of Realtors to CNNMoney.com. The news is this tax credit has been extended through June for first time home buyers and pre-existing homeowners who wish to purchase a new home.

First-time home buyers in the DC area who purchase a home before June 2010 can reduce their tax liability.  They can claim the tax credit on their tax return. Any home buyer who did not owned a home since 2005 qualifies as a first-time home buyer. The $8,000 tax credit does not have to be repaid if the purchased home is a primary residence for three years.  

There are many companies that will work with various lenders on your behalf such as Precision Funding to get you the best deal on interest rates.  Precision Funding will examine your credit history and explain to the various options open to you.

Pillar Property For Sale has worked with Precision Funding for first-time home buyers and pre-existing homeowners to get them their desired homes at an affordable payment. With rates becoming lower, homebuyers can save more than $150 a month on a $200,000 mortgage.

Other important tax credit features new home buyers can not ignore when considering purchasing a new home:

• The tax credit amount is increased to $8,000 (from lesser of 10% of cost of home OR $7,500)

• The credit applies ONLY to homes purchased in United States. The credit applies only to first-time homebuyers AND homebuyers who did not own a principal residence in 3 (three) years previous to the 2009 purchase – the three years is counted from the closing day of the last owed home.

• If married couple purchase a home, BOTH must be first-time homebuyers – regardless who is on the mortgage or the title.

•  If a group, or unmarried purchase a home, only those eligible for the tax credit can claim it on the tax return: citizenship or tax id, first-time homebuyer, or did not own a home in the last 3 years.

• For Married Filing Separately, the credit is split evenly between the taxpayers, $4,000 each
• The credit applies only to the principal residence – any single family residence (including condos, co-ops, townhouses, mobile homes, and boats if the boat is used as principal residence) that will be used as a principal residence by the purchaser.
 
• Credit cannot be claimed on a home acquired by gift or inheritance

• Credit cannot be claimed on a home acquired from a related person

• The tax credit can be claimed on a tax return to reduce the income tax liability

• This is a true tax credit and does NOT have to be repaid by 2009 purchasers.

• Buyers must keep the house for at least 3 (three) years, as a safeguard against investors and speculators.

• Investors can claim the credit, but ONLY if they do not own a primary residence (rent) and did not own a home in the last three years, but would like to purchase a rental property.

• If the tax credit is claimed on the tax return, but the house is held for LESS than 3 (three) years, the tax credit will have to be repaid to the IRS from the sale proceeds.

• DC homebuyers are eligible for the $8000 credit (In 2008, D.C. homebuyers had a separate, non-repayable $5000 tax credit available to them that had already been in effect for several years.)

• Purchasers who finance their 2009 purchases with funds from a state/local housing bond authority are eligible for tax credit.

•   This a true tax credit applied against the tax liability (not just income). It reduces or eliminates income tax liability for the 2009 year of purchase.

• The tax credit is refundable.  The unused amount will be refunded by IRS as a check to the purchaser. The amount of the refund is computed as part of the 1040 tax return filing.

• Example, taxpayer owes $6,000 minus $8,000 tax credit = $2,000 tax refund.

• Adjusted gross income cannot exceed $75,000 for Single ($150,000 on a joint tax return).
 
• Partial credit is available for income between $75,000 and $95,000 for single taxpayers, ($150,000 for joint tax returns) – for details contact your tax accountant.

• The 10% of purchase price applies to homes costing less than $80,000. For example, any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $60,000, the credit would be $6,000.

•  The $7,500 tax credit applies to homes purchased between April 9, 2008 and December 31, 2008 AND it must be repaid (6.67% of credit or $500) each year for 15 years, starting with 2010 tax filing - the $7,500 tax credit is in essence an interest-free loan, it is NOT a true tax credit.

It looks like 2010 will be the year of the home buyer. It is Pillar Sells Property belief to explore all possible economically sound avenues on behalf of the consumer not just making a sale.
End
Source:Pillar Property Group
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Tags:Property For Sale, Baltimore, DC, Good Credit, Bad Credit, Bankruptcy
Location:York - Pennsylvania - United States
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