Attention all Wilmington NC area first-time home buyers!!  Did  you know that you are eligible for a tax credit of $8,000 or 10% of the home's value, (whichever is less). This deduction can be taken  on a 2008 or 2009 tax return!

After much anticipation and congressional haggling, the final details of the Stimulus Package in regards to First Time Home Buyers has been signed, sealed and presented to the public.

Some exciting details of the plan provide that even taxpayers who have paid less than $8000 in withholding will benefit from this provision!  Depending on whether you owe taxes for the  year, or whether you are expecting a refund, the Tax credit will either be added to you refund, or subtracted from what is owed.

Questions on the First Time Home Buyer Credit:

Who Qualifies as a First Time Home Buyer?

• You may be surprised to learn that the definition of First Time Home Buyer includes anyone who has not owned a home in the past 3 years!

Are There Any Restrictions on the Home Buyers Credit?

YES!

• Income must not exceed $75,000 for singles and $150,000 for marrieds ( however these buyers may receive a partial credit)
• Buyers must occupy their purchased home for a 3 year minimum, otherwise the credit must be repaid.
• Purchase must be made between  January 1, 2009 and December 1st, 2009.

How do I claim the credit?

• It will be  claimed on your normal tax return on IRS form 5405 nothing else is required.
• Taxpayers who have already filed 2008 returns can file amended returns  to claim the credit.

Do I Have to Repay this Credit?

•  NO, unless you move out of your home before the 3 year occupancy requirement

According to the National Association of Realtors projections, the new Home Buyer Tax Credit  will enable 300,000 buyers to purchase a home. Although we were all hoping for the Senate $15,000 tax credit proposal to pass, we are grateful for any incentive to help potential buyers to enter the market.  Hopefully  the economic Domino Effect of these future home buyers will be work for those in related home services fields who may have lost their jobs otherwise

Useful sites for further info:

Information about the First Time Home Buyers Tax Credit

View IRS Publication 5405:  2008 First time Home buyers Tax Deduction

Wilmington NC is terrific place to live!  There are some great houses for sale in the  Wilmington NC, Hampstead NC & Leland NC area! Like beach living?.. I can help you find a terrific deal on a home or condos in Wrightsville Beach, Carolina Beach & Kure Beach!

by Ginger Sala, Keller Williams Realty Wilmington NC Real Estate & Relocation Specialist serving the beautiful coastal NC areas of Wilmington , Hampstead, Wrightsville Beach, Carolina & Kure Beach, & Leland NC. Coast Home to North Carolina!