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Will the $8,000 First-Time Home Buyer Tax Credit Expand to $15,000? 1

This is a question or rather – comment- that I hear a lot, that the tax credit will be upped to $15,000. This is a good article that goes into the uphill battle the bill has to get that done.

My professional opinion is that the government will extend the tax credit for the public and very well may open it up to all home buyers not just first time buyers, and remove the income limitations the current credit has. They have already extended the credit for Veterans, and if they extend or expand the credit for the general public, they would have to alter it so it was relevant to a different crowd of people than those who have already taken advantage of it.

So if they open it up to all home buyers, then those looking to “move up” or buy a bigger home can take advantage of it, which is the largest demographics of home buyers that need help right now.

See below to read the entire article.

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Posted on: 11-1-2009
Posted in: Buyers, First Time Home Buyer, Tax Credit

Home Buyer Tax credit may get expanded and extended! Comments Off

H.R.2801 or the Home Ownership Moves the Economy (HOME) Act of 2009 was introduced by Rep. Howard Coble, Republican from North Carolina on June 10, 2009. It is currently being reviewed by the House Committee on Ways and Means.

This bill  Amends the Internal Revenue Code to:

  1. Extend the first-time homebuyer tax credit to all individuals who purchase a principal residence (currently, only first-time homebuyers as so defined);
  2. Extend such credit and the waiver of recapture requirements for such credit through 2010; and
  3. Repeal the limitation on such credit based on modified adjusted gross income. (No income limitations)

This bill still has several steps to go through before it is considered law, which includes being reported by the committee, House vote, Senate vote, signed by the President. So the bill is still in it’s infancy. In my opinion this would be fantastic as it would help an area of the real estate market that really needs it which is the $300k + range that first time home buyers are not in.

But, if you are a first time home buyer, I would not wait until this is passed to take action. This is the Government we are talking about here. As it stands, if you are not looking for homes by September 1st, you are in real danger of missing the boat on the current, and only tax credit available.

To set up a 20 point, initial Home Buyers Consultation with me, just contact me.

Be informed, read the entire bill

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Posted on: 08-26-2009
Posted in: Buyers, First Time Home Buyer, Tax Credit

The $8000 First Time Home Buyer Tax Credit expires in 3 weeks!! Comments Off

“WHAT?!?” you say – “The tax credit is good until Midnight on November 30th”.

My reply – yes, that may be so, but you need to take into consideration the following, extremely important factors:

Last day to settle is realistically November 19th:

Because of Thanksgiving being holiday, and banks closing for the holiday, the last day of the month in their eyes will be Wednesday the 25th. That day is ensured to be SUPER CRAZY. So you won’t want to settle that day.
I recommend NO LATER than Thursday, November 19th.

Settlement time frames are now 45- 60 days.

It used to be 3 weeks. That is now an impossibility.The time frame referred to is from the day you get an agreement to buy a home from a seller to the day the deal settles. This time frame requires AT LEAST 45 days, most likely longer.
That means that September 17th is the deadline to find a house and get an agreement.

Don’t forget the time to actually FIND a home:

Add in the time to find a home of about 3 – 4 weeks, and you have to start seriously looking by mid august.
That is only 3 weeks away!

Now that you know, and knowing is half the battle. . . what you need to do is sit down with a great Buyer Specialist,

– hopefully me–
(Shameless plug),

and we can get your attack plan straightened out so that you don’t miss out on $8000!

To set an appointment, email me at chris@cindydickerman.com or call me at 484.995.9318

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Posted on: 07-24-2009
Posted in: Buyers, First Time Home Buyer, Tax Credit

First Time Home Buyer Tax Credit Resources Comments Off

As a follow up to my 6 part series on the First-time homebuyer Federal Tax Credit, I wanted to list a few resources that will give you some fantastic info and details.

IRS Guidance at – http://www.irs.gov/newsroom/article/0,,id=187935,00.html

National Association of Realtors Preparing for Homeownership Guide

Home Buyer Basics from Realtor.com

Home Buying Guide from the U.S. Department of Housing & Urban Development

All about homeownership from FreddiMac

To take the next step towards home ownership, contact me to schedule a Home Buyers Consultation, where we can figure out what the whole picture looks like for you and what the best path is for you to home ownership.

SCHEDULE YOUR INITIAL CONSULTATION

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Posted on: 06-18-2009
Posted in: Buyers, First Time Home Buyer, Tax Credit

First Time Home Buyer Tax Credit: Part 6 of 6 Comments Off

This post is a part of a series of posts that gives the details on the Federal Governments tax credit incentive to First Time Home Buyers. The six parts answer the following questions:

  • Am I Eligible?
  • How does it work?
  • How big is the tax credit, as a single person?
  • How big is the tax credit, as a married couple?
  • What about repayment?
  • Are there other conditions I should know about?

If your questions are not answered by these posts, feel free to contact me directly!

Question 6: Are There Other Conditions I Should Know About?

  • You cannot claim both the (Washington) Dc and the national First-time Homebuyer tax credit.
  • Purchases by non-resident aliens are not eligible.
  • 2009 purchases financed by proceeds from a qualified mortgage issue are now eligible.
  • Any single family residence located in the United States that will be used as a principal residence is eligible.
    Generally, this is the place where an individual spends most of his/her time. This includes single-family detached housing, condos or coops, townhouses or any similar type of new or existing dwelling.
  • The credit will not result in an individual owing additional federal taxes under the alternative Minimum tax.
  • Home purchases between relatives and other gifts of residences are not eligible for the credit.
  • Other tax benefits of homeownership are still in place. The mortgage interest deduction, capital gains tax exclusion, and property tax deduction are some well-known examples.

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Posted on: 06-18-2009
Posted in: Buyers, First Time Home Buyer, Tax Credit

First Time Home Buyer Tax Credit: Part 5 of 6 Comments Off

This post is a part of a series of posts that gives the details on the Federal Governments tax credit incentive to First Time Home Buyers. The six parts answer the following questions:

  • Am I Eligible?
  • How does it work?
  • How big is the tax credit, as a single person?
  • How big is the tax credit, as a married couple?
  • What about repayment?
  • Are there other conditions I should know about?

If your questions are not answered by these posts, feel free to contact me directly!

Question 5: What About Repayment?

The American Recovery and Reinvestment act of 2009 made a big change to the credit by removing the repayment provision for credits on homes purchased in 2009. Previously, the tax credit had a payback provision that made it similar to an interest free loan that would have been paid back in full over 15 years (repayment) or at the time of resale (recapture) unless the home was sold at a loss. While the repayment provision is completely gone from the updated credit, a more mild recapture provision remains. If you sell your home within 3 years of purchase, the entire amount of the credit is recaptured, that is, the government takes it back.

For more details, go to http://www.federalhousingtaxcredit.com/

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Posted on: 06-17-2009
Posted in: Buyers, First Time Home Buyer, Tax Credit

First Time Home Buyer Tax Credit: Part 4 of 6 Comments Off

This post is a part of a series of posts that gives the details on the Federal Governments tax credit incentive to First Time Home Buyers. The six parts answer the following questions:

  • Am I Eligible?
  • How does it work?
  • How big is the tax credit, as a single person?
  • How big is the tax credit, as a married couple?
  • What about repayment?
  • Are there other conditions I should know about?

If your questions are not answered by these posts, feel free to contact me directly!

Question 4: How Big is the Tax Credit as a Married Couple?

The tax credit is equal to 10% of the purchase price of your home up to $8,000. The credit passed in 2008 was limited to $7,500 and that limit still applies to homes purchased in 2008. For married couples filing jointly, the credit begins to phase out at an adjusted gross income of $150,000. the dollar amounts in the chart below correspond to a phase out of the full tax credit (percentages are for credits less than $8,000).

First-Time Homebuyer Credit Phase Out Chart for a Married Couple

For more details, go to http://www.federalhousingtaxcredit.com/

NEXT: What about repayment?

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Posted on: 06-16-2009
Posted in: Buyers, First Time Home Buyer, Tax Credit

First Time Home Buyer Tax Credit: Part 3 of 6 Comments Off

This post is a part of a series of posts that gives the details on the Federal Governments tax credit incentive to First Time Home Buyers. The six parts answer the following questions:

  • Am I Eligible?
  • How does it work?
  • How big is the tax credit, as a single person?
  • How big is the tax credit, as a married couple?
  • What about repayment?
  • Are there other conditions I should know about?

If your questions are not answered by these posts, feel free to contact me directly!

Question 3: How Big is the Tax Credit as a Single Person?

The tax credit is equal to 10% of the purchase price of your home up to $8,000.
The credit passed in 2008 was limited to $7,500 and that limit still applies to homes purchased in 2008. The full credit is available for single individuals whose adjusted gross income is less than $75,000. If your adjusted gross income is greater than $75,000 and your home purchase qualifies you for the full credit, the credit phases out according to the dollar amount (or percentage if less than $8,000) in the chart below.

First-Time Homebuyer Credit Phase Out Chart

NEXT: How Big is the Tax Credit for Married Couples?

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Posted on: 06-15-2009
Posted in: Buyers, First Time Home Buyer, Tax Credit

First Time Home Buyer Tax Credit: Part 2 of 6 Comments Off

This post is a part of a series of posts that gives the details on the Federal Governments tax credit incentive to First Time Home Buyers. The six parts answer the following questions:

  • Am I Eligible?
  • How does it work?
  • How big is the tax credit, as a single person?
  • How big is the tax credit, as a married couple?
  • What about repayment?
  • Are there other conditions I should know about?

If your questions are not answered by these posts, feel free to contact me directly!

Question 2: How Does It Work?

Like all tax credits, it will DIRECTLY REDUCE THE TOTAL AMOUNT OF TAXES YOU OWE. When
you file your taxes, for the year you purchased your home (2008 or 2009), you will be able to subtract
the amount of the credit from your Federal income tax liability, increasing the size of your refund or
reducing the amount you owe.

For example, you file your ‘normal’ tax return and find that you owe
$2,000 in taxes. With this credit, your tax liability could be lowered by $8,000—which means, you
instead get a $6,000 tax ReFUND check from IRS.

NEXT: How big is the tax credit, as a single person?

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Posted on: 06-14-2009
Posted in: Buyers, First Time Home Buyer, Tax Credit

First Time Home Buyer Tax Credit: Part 1 of 6 Comments Off

This is the first post in a series of post that give some much needed details on the Federal Governments tax credit incentive to First Time Home Buyers. The six parts will answer the following questions:

  • Am I Eligible?
  • How does it work?
  • How big is the tax credit, as a single person?
  • How big is the tax credit, as a married couple?
  • What about repayment?
  • Are there other conditions I should know about?

If your questions are not answered by these posts, feel free to contact me directly!

Question 1: Am I Eligible for the First Time Home Buyer Federal Tax Credit?

First-time homebuyers who purchase a principal residence on april 9, 2008 and before December
1, 2009 are eligible. If you (and your spouse, if married) have not owned your principal residence
for a 3-year period before your purchase, and you have never taken advantage of the Dc first-
time homebuyer credit, you qualify as a first-time homebuyer.

Next: How does the First Time Home Buyer Federal Tax Credit Work?



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Posted on: 06-13-2009
Posted in: Buyers, First Time Home Buyer, Tax Credit