Tax Credit expires! 12/09

The new 2009 tax credit has been a great incentive for first time home buyers but it expires at the end of the year. The credit is maxed at $8000 and it never has to be repaid. In comparison, the 2008 tax credit was for $7500 but had to be repaid over 15 years. The 2008 credit seemed to have a luke warm reception from potential purchasers. Those that did take advantage of the 2008 plan must be a little upset considering this change would have put free money in their pockets. I wouldn’t be surprised to see some exemption to this. Home buyers now have three strong incentives to get into the market. 1. Low interest rates. 2. Low home prices (2002 levels). And 3. An $8000 tax credit from Uncle Sam. See details on the credit below.

• 2009 First-Time Home Buyer Tax Credit Fact Sheet 
• 1. New buyers: The tax credit included in the economic stimulus is equivalent to 10 percent of the purchase price of the home–although it’s capped at $8,000–and applies only to first-time home buyers and principal residences. Buyer’s who haven’t owned a home in the previous three years will also be considered. But unlike the 2008 $7,500 home buyer tax credit, this one does not have to be repaid. Read more

  Written by Randy Tibbetts · Filed Under RE Blog