Tax Credit for First Time Home Buyers

Tax credit for first time home buyers is a great incentive to
purchase a home in SW Florida. Last year, Congress passed a tax
incentive for first time home buyers with the notion it would encourage
and motivate potential buyers and stimulate the housing market. That tax
credit however was a repayable interest-free loan that many first time
home buyers had trouble with. This year, with the new president and a
new economic outlook, the first time home buyer has much more to look
forward to in the home buying avenue. The American Recovery and
Reinvestment Act of 2009 is well underway and gives home buyers another
opportunity to own a home. What is it?

The American Recovery and Reinvestment Act of 2009 authorizes a tax
credit of up to $8,000 for qualified first-time home buyers purchasing a
principal residence on or after January 1, 2009 and before December 1,
2009. This tax incentive does not have to be repaid which makes it a
true tax credit. This is great news if you have been thinking about
purchasing a home in SW Florida! There a few eligibility requirements
for the first time home buyer that have to be met in order to receive
the credit.

For instance, the home you purchase must be used as your primary
residence for a minimum of three years. Otherwise, you will have to
repay the tax credit amount unless you meet certain criteria for
exception. It is best to check with an accountant to get more detailed
information on the allowable exceptions. Also, in order to receive the
tax credit, a first time home buyer should not have owned a principal
residence during the three-year period prior to the purchase. There are
also income limits to receiving the tax credit. The income limit for
single taxpayers is $75,000; the limit is $150,000 for married taxpayers
filing a joint return. Again, this is an area of expertise for an
accountant or tax professional.

The economic stimulus plan has made participating in the tax credit
for first time home buyers fairly easy. You claim the tax credit on your
income tax return. The IRS has Form 5405 which helps determine the home
buyer’s tax credit amount. That’s it! No other forms are required. So
now potential first time home buyers have more advantages in the real
estate market. According to the Florida Housing Finance Corporation’s
research, the tax credit will help more than 3,000 people into new
homes.

Keep in mind that in SW Florida there are many homes with low asking
prices, as well as short sales and foreclosures on the market ready and
available for purchase. Also keep in mind that in order to qualify for
the 2009 tax credit, a signed contract on a home must be completed by
November 30, 2009. There is still time to take advantage of the first
time home buyer tax credit as well as the low interest rates- this is
the perfect combination to make your dream of owning a home possible.

Contact one of our Real Estate professionals for more information on
first time home buying incentives.

The Florida Future Realty, Inc Team!

inquiry@floridafutureagents.com

(239)
542-8521 Office Line

(888) 764-6665 Toll Free

Copyright 2009 Florida Future Realty, Inc