Tax Credit Raised to $15,000 Proposed

Tax Credit Raised to $15,000 with out limits!! Proposed
Posted: Thursday, September 17, 2009 - 64 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]
Category: BrokerAgentSocial.com
There is legislation in both the Senate and the House that would expand the tax credit. A proposal by Sen. Johnny Isakson, R-Ga., would raise the credit amount to a maximum of $15,000 for any buyer of any home over the next year. It would remove the income caps that currently apply (those limits are now $75,000 for an individual and $150,000 on couples).

"I think we've got a realistic chance of doing this," Isakson says. "Our problem is not with the first-time home buyer, it's the move-up buyer."

Lawrence Yun, chief economist at NAR, says extending or raising the tax credit would spur the housing recovery, which in turn would help bolster the economy.

First Time Home Buyers

Are you a first time home buyer; if you are you have a limited time to take advantage of the up to $8,000 tax credit. A lot of misunderstandings are out there concerning this program, here are the facts:
1) You need an Adjusted Gross Income (AGI) of less than $150,000 - how do you know that? If your combined income (spouse and you) is less than $150,000 you qualify it your combined income is over $150,000 call your tax advisor, they will know!

2) Have you and your spouse owner a home in the past 36 months?

3) Do you plan to stay in residence for at least 3 years?

If you answer yes to all the above questions, now is the time to buy!

Why should you buy now other than to take advantage of the up to $8,000 tax credit?
Interest rates are lower than they have been for the last 50 years.
Many homes are on the market - a lot of very good deals out there!
You've heard buy low and sell high - well it's the same for real estate, in many areas inventory is up and prices are down. Many good buys are available, in our area. You may qualify for up to $8,000 in tax credit - that's just icing.

How does the tax credit work - a tax credit is not a tax deduction. This specific tax credit does not reduce income that is subject to tax - that is a tax deduction, it is a dollar for dollar reduction in tax liability. An example of how these differ is an $8,000 tax deduction would result in a $2,240 tax savings for a 28 percent taxpayer. But, an $8,000 tax credit would result in $8,000 in tax savings for the same 28percent taxpayer.
Still have questions, please call me 712-574-5426 and I will walk you through it. Now is not the time to sit on the fence if you qualify for this tax credit, it is scheduled to be gone on December 1, 2009. That means you have to have the property closed by that date.
source Pat Zaby, CRS, CCIM, speaker at 2009 IAR Annual Convention. www.patzaby.com

105 Peterson Street - New Listing in Alta Iowa

Check out this beautiful large home in Alta, construction is nearly complete on this 4 bedroom 2 and a half bath home. If you are a first time home buyer call me to see if you can take advantage of the new Tax Credit, this home also has a tax abatement for 2 years, high efficiency furnace and energy star appliances. The master suite is on the main level as is the laundry, the additional 3 bedrooms are on the second floor. A new deck is located just off the large living room and is very handy for entertaining. The home has a warm open and feeling and it is wonderfully designed for either a family or a single who entertains.
Call me Georgia Weaver at 712-574-5426 to see this home or email me at Georgia@SLRealtyCheck.com

National Association of Realtors Site - Tax Credit Chart

Interested in the NAR's take on the First-Time Home buyers Tax Credit, click the title to go to the chart that includes current changes. Many home buyers will qualify, if you purchased a home after April 9, 2008 check out the terms to see if you qualify for the credit.