Tax Credit
The $8,000 Federal Tax Credit For 1st-Time Home Buyers is Still Available…IF…
IF…if what? If you are a U.S. service member and were ordered on official extended duty outside of the United States for at least 90 days at any time from January 1, 2009 to May 1, 2010.
In the Fayetteville, NC real estate market, that is a lot of folks who can still qualify for up to an $8,000 tax credit. A qualified service member is a member of the uniformed services, the foreign service or someone who is an employee of the intelligence community.
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The federal government recognized the circumstances many of our service members face and extended the $8,000 tax credit for 1st-time home buyers who purchase their home before the deadline. The tax credit is fully refundable. What that means is the home buyer will get the refund even if their tax bill is less than $8,000. That’s right, you could get back more money than you paid in taxes if you qualify for the credit! There’s no need to wait for the end of the year to file for the credit with your taxes; a buyer can file for the credit as soon as the home is purchased by amending a previous return .
What does “1st time home buyer” mean? Basically, if you have not owned your own home in the last 3 years, you qualify as a 1st-time home buyer. If you owned your own home prior to that, it does not matter, you still are considered a 1st-time home buyer.
Here’s a bit more information.
The tax credit is also being offered to qualified home buyers who have lived in their current home for 5 consecutive years out of the last 8 years. Buyers can qualify for up to a $6,500 tax credit that is also fully refundable. “Move-up” buyers or homeowners looking to downsize can now also participate in the program.
There is a deadline for qualifying for the tax credit. Service members who are qualified buyers must have signed a contract on the home they are purchasing no later than April 30, 2011 and the purchase has to be completed no later than June 30, 2011.
So, if you are a service member and have been considering buying a first home or moving up (or down) into another home, now is the time to act!
Why now?
- mortgage rates are at historically low levels;
- the federal government is offering a tax credit; and,
- it is a buyers market here in Fayetteville!
Want even more information? Here is a link to a press release from the Internal Revenue Service website or check out this brochure from the National Association of REALTORS®.
Then, call me! Let’s get started looking for your new home today!
