Although the credit actually expires November 30, 2009, it can sometimes take up to 60-days to close on a home which is why we write... First-time buyers have only about two weeks to find a home!
Buyers not under contract by October 15 have little chance of meeting the November 30 deadline and therefor successfully attaining the credit.
This is especially true for purchases involving short sales and foreclosures.
Congress passed the First-Time Home buyer Tax Credit program as part of the 2009 economicc stimulus plan. IRS Form 5405 outlines the program criteria which include the following stipulations:
- Buyer may not have owned a "main home" in the past 36 months.
- The home may not be purchased from a parent, spouse, or child.
- Adjusted gross income for the household must be below $95,000 for single tax filers and $170,000 for joint tax filers.
- The credit is capped at $8,000 or 10% of the purchase price, whichever is less.
Remember the First-Time Home Buyer Tax Credit is a true tax credit and not a deduction. This means that when a tax filer who claims the full $8,000 and whose "normal" tax liability is $5,000 would receive $3,000 cash from the US Treasury when their tax return is processed by the IRS.
Simply put... If you don't close by November 30, 2009, though, you don't get the credit.
The clock is ticking. If you're planning to use the First-Time Home Buyer Tax Credit, the time to act is now!
Contact us for more information and click here to search the MLS for properties matching your wants and needs.
Thank you for your interest and in advance for the privilege of serving you!
With our highest regard,
Wayne and Lynda Gomillion
Trusted Names in Real Estate
"The friendship and referrals of those we serve is the foundation of our success."
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