First Time Home Buyer Credit of $8,000
First Time Home Buyer Credit of $8,000.
The economic stimulus act signed into law after President Obama took office has a great benefit in it for any first-time home buyers who purchase property between January and December 1st of 2009. The benefit amounts to ten percent of the purchase price, up to $8000, in the form of a tax credit when you file your taxes for 2009, in 2010. If you owe taxes for ’09, the $8,000 credit will pay for the amount of tax owed, if there is any left after paying your tax liability, the IRS will send you a check for the balance. If you owe nothing in tax for ’09, you will receive a check for the full amount.What’s the deffinition of a first time home buyer? Anyone who does not currently own a home and has not owned one in the last three years. This buyer incentive money is designed to help stimulate the economy by helping first time buyers get into a home and start moving real estate across the nation.
As an economic theory, this seems to make pretty good sense on paper. The USA is at record home ownership levels never seen before, and with the explosion in foreclosures and pendulum swing in lending standards that has made borrowing money much more difficult at the moment, we can make the assumption that we won’t see increases in ownership for the near future. This would suggest that it will take a first time buyer making a purchase to start the market moving for the seller of that home to be able to make a new purchase and so on. So helping the first time buyer be able to get into the home should stimulate sales throughout the industry. Let’s call it trickle up economics.
The easy thing to remember is if you haven’t owned a home in the last three years and you buy before December 1st of this year, you will see an extra $8,000 coming on your tax return when you file for ’09.
I would love to help you with your real estate investments.
Ivan Crago Realtor Missoula, Mt.
Associated with Prudential Missoula Properties
Cell 406-531-6396 Fax 406-728-2315 Office 406-728-8270
Missoula, Mt Looking North from The Ranch Club Golf Course