Monday, July 13, 2009

$8,000 Tax Credit Facts - Not for only First Time Buyers

Who is Eligible? - A Home Buyer who has not owned a Principal Residence in the Prior 3 Years and has Filed Taxes.

Payback Provisions? - DOES NOT have to be Repaid (unless you sell the home within the first 3 years after purchasing it).

What does Tax Credit mean? - If you owe less then $8,000 in Federal Income Taxes, the Government will write you a check for the difference. If you don't owe anything, you get the full $8,000 (added to whatever you might be getting back on your tax return).

Deadline to Collect $8,000? - You need to close on your new home between January 1, 2009 and December 1, 2009 to qualify.

Can it be used for Down Payment? - Yes, through TDHCA Bond 70 Program to a maximum of $6,000.

Income Limits? -
1) Head of Household, Single Taxpayer with Gross Income less then $75,000 (between $75,000 & $95,000 receive partial credit).
2) Married Couples, Filing Jointly, Gross Income of $150,000 (between $150,000 & $170,000 receive partial credit).
3) Over the above income(s) the Tax Credit is not available.


The above information is a quick and easy way to understand what "tax credit," really means. I have had numerous first time buyers skeptical of this stimulus plan with the preconceived notion that "if it seems to good to be true then it usually is." I have also had many buyers who don't understand that you actually get CASH back from the Government, and instead expect it to be a credit on their yearly taxes.

This is a once in a lifetime opportunity with the market availability, low interest rates, and government freebies all lining up in the stars at the same time. If you meet this criteria, and are eligible to be a homeowner at this given time, and you choose not to.....your missing the Biggest Ship to ever Sail out of the Homeowner-Ship Harbor in our Lifetime.