While I am not an accountant and don't give tax advice I do know a great opportunity when I see one. Therefore I felt it imperative that this month's article address the tax incentives that are provided in the economic stimulus bill recently passed by congress with regard to real estate.
First there is an up to $8,000 tax credit for first-time homebuyers. A first-time homebuyer is anyone who has not owned a home in the past three years. To qualify for the full $8,000 tax credit, couples filing jointly must earn less than $150,000 in adjusted gross income for 2009 and the home must be closed on by November 30 of this year. The credit will go away on December 1, 2009.
Second there are green tax credits for homeowners. There is now a $1,500 lifetime tax credit for home improvements such as energy-efficient windows, doors, mechanical systems and insulation. Homeowners can take a 30% tax credit for every dollar they spend on green upgrades like solar heaters, heat pumps and fuel cells. The credits apply through 2010.
It's important that you as a buyer or homeowner understand that tax credits are a great form of tax relief. They are a direct dollar-for-dollar reduction of your tax liability - and for first-time homebuyers, if the credit is larger than the tax liability, you get a refund! As a prospective home buyer you should obtain advice from a professional tax advisor to see what tax credits you may be eligible for.
Real Estate prices in Northern Arizona are the most affordable they been in the past few years. If you qualify for a loan there is no better time than now to invest in a home. Interest rates are low and with these tax incentives, a home buyer cannot help but come out ahead. The National Association of Realtors has recently developed a brochure entitled "It's a Great Time to Buy". You can view an electronic copy on my web site at www.marymonday.com/documents/brochure.pdf. There are several hyperlinks within the brochure that expand on the tax credit and home buying information.
My advice; don't walk by a house that you had considered buying and kick yourself because someone else is moving in. It will happen!
Comments(0)