$8,000 Tax Credit Deadline Is Nearing. Find Out If You Qualify!

$8,000 Tax Credit Deadline Is Nearing. Find Out If You Qualify!

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and Nov. 30, 2009.

To qualify as a "first-time home buyer" the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer's tax credit is determined by two factors:

The price of the home-the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer's income-single buyers with incomes up to $75,000 and married couples with incomes up to $150,000-may receive the maximum tax credit.

If the Buyer(s)' Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income-over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

You just provide your HUD1 or a.k.a. Settlement Statement you receive at closing, to your CPA when you file your taxes for 2009 and you should receive the credit at that time.

If you are someone you know is in the market to purchase a home and would like assistance with finding the right home before the tax credit deadline. Give us a call at 281-797-3841 or e-mail us at laurawatson@remax.net.

Brought to you by!

Laura & Rod Watson

The Watson Group Realty

Re/Max Prestige

11143 Huffmeister Rd.

Houston, TX 77065

Office: 281-797-3841

Direct: 281-797-3941

E-mail: thewatsongorup.remax@gmail.com

www.thewatsongrouprealty.com