As we move from summer into fall, the countdown has begun for first time purchasers to earn a homebuyers tax credit of up to $8000 on their 2009 federal income tax. The American Recovery and Reinvestment Act of 2009 provides the credit to home buyer's who have 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. The refund is a true tax credit; not a deduction. In other words if your tax bill for 2009 is $8000 and you have earned the full tax credit your final tax bill is $0.
To educate yourself on the value of this once in a lifetime opportunity, go to the internet and conduct a search for the credit. There are countless articles, videos and blogs describing the merits of the legislation. The National Association of Realtors web site at www.realtor.org contains a wealth of information describing the eligibility and value of the program.
There is some movement by various organizations to get the tax credit extended and expanded, however as I write this I know of no legislation being considered. With time getting short some mortgage lenders, realtors and economist are predicting that there will be a rush of people who want to buy and close on a home before the deadline passes.
Some statistics indicate that many people have not yet heard of the tax credit, so if you or someone you know may qualify and be interested in buying a home it is imperative that they move quickly. The first order of business is to visit with a mortgage lender. We have many here in our community who are knowledgeable about the credit and are ready and able to assist in getting you pre-qualified for a loan.
If you are considering using this gift from Uncle Sam time is of the essence. You must act soon as time is getting short! My advice; don't look back in a few months and say; I could have, should have, would have, it may be too late.