Hey, first-time homebuyer: How does $8,000 from your Uncle Sam sound?
Want an extra $8,000? If you're a first-time homebuyer then we have a nice surprise for you.
Last fall, the Federal Government introduced a financial incentive to prospective first-time homebuyers - an income tax credit of up to $7,500. The rules were simple: you must have been a first-time homebuyer (as defined by not owning a home in the previous three years) and you met certain income restrictions. This tax credit was actually an interest free loan paid back in $500 increments annually and if you sold your home before it was paid back, the remaining amount would be collected at tax time.
NOW....
The new $8,000 tax credit is available to those who buy between January 1, 2009 and December 1, 2009. It's not a deduction, it's an actual credit. Unlike the $7,500 first-time homebuyer tax credit introduced last summer; this does not need to be repaid.
First timers who qualify can make no more than $75,000 in adjusted gross income if they're single or $150,000 if filing jointly. The maximum tax credit is $8,000 or 10 percent of the sales price of the home, whichever is less. Three years residence in the property are required. As always, check with your accountant for details and be sure to submit IRS form 5405 when you file your taxes. This credit may be claimed on this years taxes; again, check with your accountant.
When you're in the market to Buy a home, call on an Agent that will be your Advocate with Exclusive Representation. Call Jessie Teehee, "YOUR Real Estate Advocate" with Keller Williams Realty in OKC - (405) 463-6709 or visit my site at www.JessieTeehee.com to learn more about my service to you.
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