The word is finally out—this is THE time to be buying real estate! Prices are low, interest rates are low, and you can still qualify for either the first-time home buyer rebate of $8,000 or 10% of your purchase price, whichever is less, or the rebate for people that are stepping up in price and buying a more expensive home.
HONEY – STOP THE CAR! THE $8,000 REBATE ISN’T OVER YET!!!
If you gave up hope that you could buy a home before November 30 and qualify for the first-time homebuyers tax credit, you’re going to love this news!
(*First is defined as not having owned a home in the last three years.)
The government is offering a one-time credit of $8,000, (or 10 % of the purchase price, whichever is the lesser amount ) of your first home. For example, if you buy a home for $76,000, then you would qualify for a credit of $7,600. But if you pay more than $80,000 for your new home, then you would qualify for an $8,000 credit.
How do you take advantage of this incredible offer? You must purchase a home that will be your main home before December 1, 2009. You will even qualify if you bought your first home after April 8, 2008. Then you have some options as to how you get your money from the government.
The fastest way that I know of is to do a Rapid Amended Return to your 2008 tax return. However, I heard a rumor that I’m tracking down that would allow you to get your money before you purchase a home. So far I haven’t confirmed that, but if I get that confirmation, I will write an update in my next column.
The other way to obtain the credit is to simply fill out a Form 5405 that you submit with your 2009 taxes.
Personally, I think amending your 2008 tax return might be the best way to go. You would get a check in the mail -- as long as you don’t owe the IRS any money, that is!
We’re running out of time to get your new home before December 1, 2009 and a tax credit from the government! So act fast and call me today!
Pam Ryan Anderson
Real Estate Broker, Ryan Realty