A Gift From Your Government
February 18, 2009
"I'm from the government and I'm here to help." This has been a standing joke for as long as I can remember. Folks have felt that the government's help has always come with a catch - fees, more regulations or just increased red tape. Perhaps this is the reason that there has been little rejoicing about the just enacted stimulus bill and the soon to be announced foreclosure assistance plan.
However, as nearly as I have been able to comprehend it, the first time home buyer tax credit is a real gift from the government. An $8,000 tax credit on your 2009 tax return can be an incentive to purchase a home in 2009. If the low prices of homes are not enough incentive, the $8,000 could be a true stimulus for a reviving real estate market.
Here are some excerpts from a great article published by U.S. News and World Report Magazine on their web site: http://www.usnews.com/.
"This credit is equivalent to 10 percent of the purchase price of the home - although it is capped at $8,000- and applies only to first time home buyers and principal residences."
"Only those who purchase a home on or after January 1 and before December 31, 2009 are eligible for the credit."
"Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples."
And the main restriction is: " Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government."
Unlike the $7,500 credit of 2008, this credit does not have to be repaid except in the instance cited above.
Today's market is a great opportunity for buyers of any sort, but for first time home buyers, the government has given a real gift.
"I'm from the government and I'm here to help." This has been a standing joke for as long as I can remember. Folks have felt that the government's help has always come with a catch - fees, more regulations or just increased red tape. Perhaps this is the reason that there has been little rejoicing about the just enacted stimulus bill and the soon to be announced foreclosure assistance plan.
However, as nearly as I have been able to comprehend it, the first time home buyer tax credit is a real gift from the government. An $8,000 tax credit on your 2009 tax return can be an incentive to purchase a home in 2009. If the low prices of homes are not enough incentive, the $8,000 could be a true stimulus for a reviving real estate market.
Here are some excerpts from a great article published by U.S. News and World Report Magazine on their web site: http://www.usnews.com/.
"This credit is equivalent to 10 percent of the purchase price of the home - although it is capped at $8,000- and applies only to first time home buyers and principal residences."
"Only those who purchase a home on or after January 1 and before December 31, 2009 are eligible for the credit."
"Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples."
And the main restriction is: " Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government."
Unlike the $7,500 credit of 2008, this credit does not have to be repaid except in the instance cited above.
Today's market is a great opportunity for buyers of any sort, but for first time home buyers, the government has given a real gift.
posted by shirley harry at 8:41 AM
0 Comments:
Post a Comment
<< Home