$5000 Kentucky Tax Credit

Real Estate Agent with RE/MAX Alliance - Louisville REALTOR-Luxury Homes

Free Money$5000 Kentucky Tax Credit

Effective immediately, the state of Kentucky is offering all non-first time home buyers a $5000 tax credit for the purchase of a new home.  This is great news for builders and for existing home owners who are ready to take advantage of the current market conditions. 

The Details

  1. This money is for buyers who are not eligible for the federal $8000 first time home buyer tax credit.
  2. To qualify, you must purchase a new (never been occupied) home and use it as your principal residence.
  3. You must purchase your new home between July 26, 2009 and July 25, 2010 OR before the funds run out.  (Please note, $25 Milllion has been allocated, but you do not want to wait too long.)
  4. This is a NON-REFUNDABLE tax credit.  In other words, the amount you get back cannot exceed the amount you owe in Kentucky State Taxes. 
  5. You must submit your application via fax within seven (7) days of your purchase (closing) date. 

Time to Act

Your Plan (Louisville and Bullitt County Residents)

For all of you who have want a piece of the action, this is what you should do immediately...

1) Call me so we can discuss listing your current home.  You really want to get your home on the market before $8000 tax credit expires.  At the same time, I'll review various new construction homes in the Louisville area and you can start to think about where you want to live.  

2) Call your lender.  Make sure there are no issues with your credit and get a pre-approval letter for a new home. 

3) Call your accountant to discuss the best way to maximize your return.  Remember, this is non-refundable.

Note: If you don't have a lender or an accountant, I have recommendations for you.

Final Thoughts

It is not going to get much better than this.  Interest rates remain at near historic lows.  In fact, there is a good chance today's rates are at least 1 whole point below your current rate.  The federal government is offering tax incentives for buyers to purchase your home.  Not only is the state government offering further assistance to these buyers, but also Kentucky is giving YOU money towards YOUR next home.  This is your personal bailout plan!  You can take advantage of it and find a new home for yourself and your family or you can stay put.  I encourage you to act.

Here's a couple of other things to think about...

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Erik Hitzelberger is a licensed REALTOR with RE/MAX Alliance in Louisville. If you need a Louisville Real Estate agent please email me or call 502.921.3989.

I specialize in the following areas of the Metro Louisville Area: Prospect, Middletown, Jeffersontown (J-Town), Fern Creek, Okolona, Shepherdsville, Mt Washington, Hillview, and Brooks.  Click the following links to learn more about Louisville and Bullitt County Real Estate or to Search for Louisville Homes 

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Comments (4)

Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

Erik that is great news. I bet the money goes pretty quick!

Jul 28, 2009 12:23 AM
Erik Hitzelberger
RE/MAX Alliance - Louisville REALTOR-Luxury Homes - Louisville, KY
Louisville - Middletown Real Estate

Bill - I certainly hope a lot of people will try to use it.  The accountant role is pretty key here since the credit is nonrefundable.  But, for those who act quickly, it could be helpful.

Jul 28, 2009 12:54 AM
John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

With all of the tax breaks and refunds you receive, it is an advantage to buy now. In a short time, there wont be a refund for buying a home. People will still buy though. If you are thinking of buying a home, take advantage of the refunds that are being offered today.

Jul 29, 2009 02:11 PM
Erik Hitzelberger
RE/MAX Alliance - Louisville REALTOR-Luxury Homes - Louisville, KY
Louisville - Middletown Real Estate

John - I wish these credits / incentives were available when I purchased a home.  My fear is too many people will think these credits/rates/prices are here to stay and mis out on the opportunity of a lifetime. 

Jul 29, 2009 02:36 PM