2009 Tax Credits for Homeowners & Homebuyers

The 2009 Recovery Act signed into law early this month has something for everyone. Make sure you take advantage of what is being offered to you. Please consult with your accountant or the IRS for further details & tax implications regarding these new credits.

The first time homebuyer credit that passed in July of 2008 was, thankfully, improved upon. Polls conducted by the National Association of Realtors found that the overwhelming majority of first time buyers (71%) viewed the 2008 credit as a loan rather than a credit since it had a recapture period. Consequently, the results were negligible with regards to stimulating sales. As a result, the 2009 credit was increased and the recapture provision was eliminated as long as the home is not sold in the first 3 years. The 2009 credit is as follows;

• $8000 tax credit for first time buyer or anyone who has not owned a house in the past three years
• Valid on primary residence purchases from January 1^st, 2009 to on or before November 30^th, 2009
• Income limits; $150,000 if filing jointly and $75,000 if filing single
• Credit can be claimed on 2008 tax return. You can amend your return if you buy a home after filing or claim it when you file your 2009 return

As part of the Stabilization Act in October 2008 homeowners received tax credits for energy efficient home improvements. This was once again addressed in the Recovery Act of 2009 with extensions and modifications to tax credits. The credit is for qualified energy efficient improvements & can be captured on your 2009/2010 tax returns for a cap of $1500.

• Storm doors, exterior windows & skylights
• New high-efficiency air conditioners, heat pumps, water heaters, corn fueled stoves, furnaces, boilers & geothermal heat pumps
• Roofing & insulation
• Each improvement comes with its own qualifications and efficiency standard. Please refer to your accountant or the IRS for further information.

There are two portions to the final agreed upon bill. For those who would like to read the full text of Div. B- tax provisions please visit http://www.sellingcincinnatihomes.com/

Cheers!

Julz Brown

Group Realtors

Licensed in Ohio & Kentucky

513.237.1072