Are You a First-Time Buyer on the Fence?

By now you've probably heard about the $7500 First-Time Buyer Tax Credit. Here are a few tips that you may not be aware of:

• The credit is valid from July '08 through July 1^st, 2009 and must be applied to the tax year of the purchase. That means that if you are hoping to apply the credit to the coming tax season, you must close on a new property by the end of this year. Likewise, any purchase made between January 1st and July 1st will be applied to the 2009 tax season.
  
• Buyer's don't really have to be "first-timers." The broad definition includes any buyers who have not had ownership of real property in the past three years.
  
• Think you make too much money? The credit is applied fully to individuals earning less that $75,000 and households earning $150,000. However, if you earn $95,000 and $170,000 respectively, you can still qualify on a reduced basis.
  
• There is no pre-purchase authorization, application, or other approval process. Eligible buyers simply have to claim the credit on their IRS Form 1040 tax return and/or any form that the IRS might devise.
  
• New Construction and Condos qualify too! For a home that a buyer constructs, the purchase date is the first date the buyer occupies the home. However, any home that is not a primary residence, such as a vacation home or income property, does not qualify.

If you have more questions, please let me know!