Time Is Running Out for 2009 First Time Homebuyer Tax Credit

Attention first-time homebuyers! Time is running out to get in on the $8000 tax credit.  Don’t let this awesome opportunity pass you by.  If you are thinking about buying a home this year and you are a first time homebuyer – you need to know about this program.

Can you imagine hearing your agent say this while you are out scouting properties, “Not only did the sellers of this home renovate the kitchen, install a new roof and a brand new sprinkler system, but the United States government is going to sweeten the deal with an eight thousand dollar credit toward your income taxes.”

For first-time homebuyers ready to dive into home ownership between now and one month before the end of 2009, a tax credit (which means cash) can be yours if you meet the qualifications laid out in the plan.

This is not similar to the former program which was a loan that you would have to repay over time. Think of this as a rebate that is money in your pocket to furnish your new home with anything you want, or even a vacation or second honeymoon. The money is yours and you can do with it as you please!

Here's a few of the most common questions that most people have:

1. How do I qualify as a first time buyer if I have owned a home before?

You can qualify as long as you have not owned a home for three years prior to making this purchase. For example, if you sold your last home on June 1, 2006, you will qualify for the credit with a new home purchase on or any beyond after June 1, 2009 and you must keep the home as your main residence for a minimum of 36 months after purchasing.

2. If I owe $5000 in taxes and I qualify for the $8000, what happens to the $3000 difference?

The difference will be sent to you as a refund check from the IRS. Any amount above what you owe the IRS (assuming you owe anything) will be returned to you. Also, if you qualify to receive a return of $1000 for 2009, you would receive a check for $9000.

3. Are there any income restrictions?

Individuals filing a gross income under $75,000 and married couples earning less than $150,000 qualify for 100% of the credit. Individuals earning between $75,000 and $95,000 will see a tiered tax credit. Married couples earning between $150,000 and $170,000 will also see a tiered tax credit in their return.

Lately the press is talking about an extension of the time frame in which a buyer may take advantage of the program; it may spill over to next year 2010. There is even some thought that it will cover all home purchases, not just those made by first-time buyers. This is not set or guaranteed and no one knows what the future will bring. The $8000 outlined in this article is, however, here and is waiting to be claimed on your 2009 tax return. Don’t miss out!

This year we have worked with many first time home buyers wanting to buy Tampa Homes; we can help you too, please call us at 1-888-423-5775.

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