I know that a lot of people out there think that this 8000 dollar credit is just too good to be true. Or even just have many questions and concerns about it. So my goal is to help you understand what it is and how it works in as many ways as possible! To those of you that are interested in buying your first home this tax credit can be an amazing help! How does it work? That’s simple! If you are a first time home buyer (or if you haven’t owned a home in the past three years) and purchase a house over 80,000 dollars you can get the full 8,000 dollar credit.
What’s the limit for your purchase price? Now let’s say for example you purchase a house under the 80,000 you are still eligible to receive up to 10 back of the purchase price! So the maximum amount of a credit will be 8,000 and if it is lower than the 80,000 dollar limit you earn 10 of the purchase price from there.
How can this credit be used? However you want. Let’s say you decide to buy a “fixer upper”. Why not throw all that money into your home to increase the value on it. Throwing that money into your home is not throwing money away, it’s basically like putting that money back into your pocket. Even though there are no rules on how to spend it, why not invest?
Are there income limits to this tax credit? If you are single, you can earn up to 75,000. If you are married, then you can earn up to 150,000 dollars. If you are single, and earn more than 75,000, then the amount of the credit goes down until it finally reaches nothing at 95,000. If you are married and make over 150,000 then the credit turns into nothing at 170,000.
What to do in order to get this credit? In order to get this credit, you first close on your home and then you file a form with the IRS. You can either do this on your next tax return OR you can file an amended return on your 2008 taxes and get your check with in just a few weeks!
Can you use the credit as a down payment? If you want to buy a home and only have a little bit of money for the down payment, you can now use the 8,000 credit towards the down payment! You will still need to put down a small percentage out of your own out of pocket, because they will not allow the 8,000 to be the only money you put down. Check with your lender to see how much you would need to put down, without touching the 8,000 dollar tax credit.
Now that you know how it works you need to get busy! All the documents and closing on your home must be dated before December first as the deadline to the credit is November 30th!It usually 30 days to close on a home once you find one, and you don’t know how long it will take to find your home! It’s not too late! So hurry and give Jamie Mades a call so we can get moving towards your 8,000 tax credit!
Conclusion:
If you are interested in buying a home, and you’re either a first time buyer, or have not owned a home in the past three years you are eligible for the 8,000 tax credit! So why wait? Take advantage of this great opportunity, call and get information on this today!
Author Resource:
Jamie Mades is a Realtor in Colorado Springs specializing in residential real estate and relocation services. He is also founder and owner of Colorado Springs Team Real Estate, Inc.
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