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What an incredible opportunity for first-time homebuyers! On February 17, 2009, President Obama signed into law a new stimulus package which includes a provision for first time home buyers. In addition to a huge selection of homes to choose from, and near-record low interest rates on solid, 30-year fixed rate mortgages, and far more affordable prices, first-time homebuyers now have the added incentive of a $8,000 federal income tax credit to help them buy their first home! Here are some questions and answers that will help you determine if you are eligible: What is the First Time Home Buyer Credit? On July 30, 2008, a major housing bill (H.R. 3221) was signed into law. The law created a new, temporary tax credit equal to ten percent of the qualified home purchase price, with a maximum credit of $7,500. In February 2009, with the passage of The American Recovery and Reinvestment Act the maximum credit is increased to $8,000 and the repayment of the credit is no longer required for home purchases on or after January 1, 2009 and before December 1, 2009. Who is eligible? A first time home buyer is defined as a buyer who is a U.S. citizen who files a tax return and who has not owned a principal residence in the previous 3 years. The eligible property includes any single family home that can be used as a principal residence including a condominium. To qualify the buyer must close on the sale of the home between January 1, 2009 and before December 1, 2009. Are there income limits? Yes. Individuals whose Form 1040 filing status is Single (or Head of Household) are eligible for the full credit if their income is no more than $75,000. Individuals who file a Joint return may have income of no more than $150,000. A partial credit is available for income above the limits and is completely phased out when income reaches $95,000 for individuals ($170,000 joint return). When will I receive the credit? The credit reduces your income tax liability for the year in which you purchase the home. First time home buyers who close on their new home on or after January 1, 2009 and before December 1, 2009 will receive the tax credit when they file their 2009 tax return in 2010. The credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. In such instances, the taxpayer will receive a refund check from the government. How is the tax credit repaid? With the passage of The American Recovery and Reinvestment Act there is no repayment for purchases on or after January 1, 2009 and before December 1, 2009. What if I sell the home? If the homeowner sells the home within three years of purchase, the entire amount of the credit would be recaptured at the time of the home sale. This applies only to homes purchased in 2009. Click here for the Tax Credit FAQ PDF for more information. Featured Blog: Five Tips for First Time Homebuyers The Clarksville, TN real estate market consists of 54,000 single family homes and over 2,000 condos and town homes. Ft. Campbell real estate is affordable to most military ranks and located mostly on the north side of Clarksville. To learn more about Ft. Campbell properties, click here. |
Robert S. Powers, Principal Broker- St. B Office# 224891
Jacquie Walker, Broker Manager- St. B Office# 248695
Joe Spears, Principal Broker- Ft. Campbell Office # 268934
Licensed in Kentucky
Robert S. Powers, Principal Broker #31475
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