Lately it has been hard to ignore all of the hype about the $8,000 First Time Home Buyer Tax Credit that is covered in the news, from your local Real Estate experts, and especially if you're in the process of buying a home! But perhaps it is still puzzling you as to what exactly this tax credit means and how the process works. I feel it is important to explain this wonderful opportunity to everyone in further detail, so read on!
The First Time Homebuyer Tax Credit was passed early this year by Congress. It allows a first time home buyer (or a buyer that has not owned a home in the last 3 years) to receive up to an $8,000 for purchasing a home. The money is a true credit and you do not have to pay it back, if you live in the home for at least 3 years! That last sentence is almost worth repeating again! The tax credit is tied to your federal income taxes and can be claimed on your 2009 tax return, or you can file an amended 2008 return to receive the money this year.
Here is a true story! I had a past customer get their $8,000 check last week. They were a first time homebuyer and bought a home in Indianapolis this past spring. They closed on their house, filed an amended tax return and received a check in the mail for $8,000! You can use the money to build a fence, deck, buy appliances, update your kitchen, or just to put in your savings account for future use. Doesn't that sound rewarding?
Unfortunately, the tax credit is set to expire December 1, 2009. If you want to claim this credit, the home will have to be closed by then. That creates urgency for homebuyers, but also for home sellers currently on the market! The credit along with historically low interest rates makes this a great time to purchase a home!
Please call The EnRoute Team at Keller Williams Realty if you’re thinking about moving and would like to discuss how you can take advantage of the $8,000 tax credit now! 317-573-1896 or Enroute@enrouteteam.com! We're always here to help service your real estate needs!
Redefining Real Estate,
Home buyer specialist
The EnRoute Team