Are You a First-Time Home Buyer?

$8,000 Could Be Waiting for YOU!

Have You Owned and Lived in a House 5 of the last 8 years?

$6,500 could be in your future!

Don’t answer that first question too quickly now. According to the IRS, with regards to the Economic Stimulus Package passed by Congress, a person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three (3) years previous to the day of the purchase of a home.

So, do you qualify? Once you pass the three (3) year test, the next step is checking the income restriction. When you file for the $8,000 tax credit (or 10% of the sales price of the home purchased – whichever is less) your income can be no more than $125,000 for a single tax payer or $225,000 for married couples filing jointly. Those figures are the latest change as of November 7, 2009. 

As to that second question - if you owned a home within the past eight years and lived in it five of those eight years, you should be able to qualify for a $6,500 tax credit!

Closing on the home by December 1, 2009 is no longer necessary either. The new rules state that you must have your new home under a written binding contract by April 30, 2010 and close on it by July 1, 2010. Those dates apply to either group of buyers.

I just want to make sure that you’ve caught the words TAX CREDIT; this is NOT a TAX DEDUCTION, it is a TAX CREDIT and there is a big difference. A tax deduction reduces the amount of income on which you pay taxes. But a tax credit means the government gives you this money – up to $8,000 cash in your pocket. When you file if you owe money, it will be deducted from the $8,000 and you’ll get the difference. If Uncle Sam owes you money, you’ll get what you’re owed plus the amount of your qualified tax credit.

So if you’re ready to help the economy and YOURSELF let’s start your search. You can email me at lynn@lynnknapik.com or call and we’ll be on our way. Read more about this by checking the National Association of REALTORS site -NAR Issue Brief. Check out the links NAR's page under the heading Daily Real Estate News - Obama Signs Extended Tax Credit into Law.

Watch the clip below from Channel 12 news to see how this could help you. One of my clients and I were interviewed recently. The dates we speak of on this video were for the old program that has now been extended as described above.

http://www.ksat.com/houseandhome/20983477/detail.html#video