FINALLY, the details are released…I don’t know about you but I’m tired of hearing all the gossip and I’m glad to see the facts. This tax credit will hopefully provide enough help for FIRST TIME HOME BUYERS, I know a lot of people were waiting for this bill to pass because now the credit does NOT have to be paid back (see notes below). Also, for those that currently own your own home, the goal for part of this bill is to stimulate the housing market. I'm sure soon if not already we will see the availibility of those entry level homes start to tighten up. If you have been waiting for an opportunity to sell... now might be the best time.
Please keep in mind….the tax credit is pushed through the real estate market but the details are handled by your tax advisor. I think that’s what has made this all a bit confusing, plus all the changes!
If you still have questions after reading this CALL ME, if you purchased a home prior to 2009 and are wondering how the Tax Credit applies to you CALL ME, I’m here to help!
DETAILS OF THE TAX CREDIT
**In Denver earlier today, President Obama signed into law the American Recovery & Reinvestment Act of 2009, the much anticipated federal economic stimulus bill. Within the massive legislation, several provisions specifically impact the housing industry through expansion of federal programs and inclusion of incentives intended to stimulate private investment.
Under the revised program, first time homebuyers (defined as any buyer that has not owned a primary residence within the past three years) may claim a credit equal to 10% of the purchase price, or $8,000, whichever is greater.
Important provisions of the new program include:
* The credit applies to home purchases between January 1, 2009 and November 30, 2009.
* The credit may be claimed on the 2008 personal tax return if the purchase occurs prior to filing deadline or on the 2009 personal tax return if the purchase occurs later. Tax filers may also amend their 2008 return if a qualifying purchase has occurred and not included in previously filed return.
* As a credit, the program offers a direct reduction of the federal tax obligation and may be refundable if the credit exceeds the federal tax due from the filer. The credit is in addition to standard tax deductions associated with real estate ownership – property taxes, mortgage interest, etc.
* The credit is recaptured in full should the buyer sell, transfer or fail to occupy the home as a primary residence within three years of the purchase. The previous version of the credit which mandated 15 year repayment on subsequent tax returns has been repealed.
* The credit phases out for individual tax filers with modified adjusted gross incomes between $75,000 and $95,000 ($150,000 and $170,000 for joint filers).
Information provided by Funding Partners.
To read the full text of the legislation that impacts taxes and fiscal relief (Part B), please visit: http://www.thomas.gov/home/h1/Recovery_Bill_Div_B.pdf
Catherine Eusea
Senior Loan Officer
National City Mortgage, A Division of National City Bank
720-300-6777 Cell
970-212-2228 Direct
catherine.eusea@ncmc.com
To apply on-line go to www.ncmc.comc/catherineeusea
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Originally Posted by CatNip
