Tax Credit for First Time Home Buyers, in the Palm Springs Area.
Tax Credit for First Time Home buyers, in the Palm Springs Area.
Tax Credit is available for first time buyers purchasing a new or existing home between Jan 1 through December 1 2009,and a large number of people are taking advantage of this incredible opportunity.
Even though it's called a "First Time" homebuyer tax credit, many people actually qualify. According to the plan,a first time homebuyer is defined as a buyer who hasn't owned a principle residence within the past three years prior to purchase.
So, if you've owned a rental, or part of a vacation home -- but haven't owned a principle residence during this time -- you are still eligible.
The tax credit is equal to 10% of the home’s purchase price, with a maximum credit of up to $8,000. The full tax credit is available to single buyers making up to $75,000 annually, or married couples claiming income up to $150,000 on a joint return. The amount of tax credit you can claim is reduced if your income falls between $75-95,000 individually, or between $150-$170,000 for couples filing jointly.
What's unique about this tax credit compared to the one we saw in 2008 is that this tax credit does not have to bepaid back, AS LONG AS the buyer stays in their home for three years from the recorded purchase date.
This is different from the 2008 tax credit because that one had to be paid back over time.
for many homebuyers, and it's available for a very short sale time.
However, I should point out that if the buyer sells the home within the three year widow, the $8,000 will be recaptured and paid back to the government, making it more like an interest free loan.
To learn more about this great incentive, give me a call or drop me note.
Thanks
Rob Zwemmer
