This information has been around for a while but I wanted to remind everyone that time is running out!!!
IF you are thinking of buying a home and are financially ready do not hesitate.
Or have a list of foreclosures emailed to you.
This article is from the PMAR
POCONO REALTORS® BUYERS WHAT THEY NEED TO KNOW ABOUT 2009 TAX CREDIT
STROUDSBURG, Pa. -- (March 1, 2009) – In its ongoing effort to share current information on homeownership with area individuals, the Pocono Mountains Association of REALTORS (PMAR), is alerting first-time home buyers about the American Recovery and Reinvestment Act and the latest tax credits enacted within it as an incentive to purchase now.
“This is an unprecedented time in history for the first-time homebuyer,” said Vickie Brockelman, chair of the Public Relations Committee of PMAR. “Firstly, there are many homes on the market giving buyers an edge, secondly, interest rates are super low and thirdly, in its efforts to stimulate the economy and revive the housing market, Congress enacted this $8,000 tax credit. This creates an excellent situation for first-time homebuyers to buy now.”
The tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Qualifying taxpayers who buy a home before the deadline can claim the credit on either their 2008 or 2009 tax returns. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.
According to the National Assocation of REALTORS, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase. In addition, there are some income limitations and other specifications to the bill, however, generally, each dollar of the tax credit reduces income taxes by $1. Therefore, a qualified purchaser would figure out their tax liability and once the total taxes owed has been computed, tax credits are applied to reduce the total tax bill. For example, a $9,500 total tax liability for the year would be reduced to $1,500 for a first-time buyer who purchased a home of $80,000 or more and fell within the income ranges of $75,000 for singles and $150,000 for those filing married. In addition, this tax is considered a refundable credit, so if the purchaser’s total tax liability was $6,000, the IRS would send them a check for $2,000.
“If first-time buyers don’t act now, I suspect many will regret their hesitation in the future,” added Brockelman.
To learn more about the tax credit and available homes, contact an area REALTOR® by visiting the PMAR Web site for a complete list of members at poconorealtors.com. For additional details for the tax credit, visit www.IRS.gov or www.realtor.org to review the FAQ document which outlines the tax credit and compares it against the 2008 tax credit as well as the tax credit features chart outlining the 10 provisions of the American Recovery and Reinvestment Act.
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So what are you waiting for???
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