If you have yet to take advantage of the tax credit for first-time home buyers, time is running out. The deadline to benefit from the sizable credit of up to $8,000 that was included as a part of the American Recovery and Reinvestment Act is November 30th, 2009.
While many have gone out and purchased homes to benefit from the credit, some have yet to do so. If you have been thinking about buying a home but haven’t, here are some of the guidelines for receiving the credit that you might consider:
- You (0r your spouse) can’t have owned a home in the last three years.
- There is an income limit: single tax payers – $75,000; married taxpayer – $150,000.
- For the credit, you will up to $8,000, which equates to 10 percent of the purchase price of a home up to $80,000.
- The home purchase date is considered the day that closing occurs and the title is transferred to the new owner.
Because the credit is so popular, Realtors have begun lobbying to Congress to extend the credit for at least another year. They believe this will help alleviate the depressed real estate market.
However, if the credit is not extended, analysts believe that those who did not qualify or simply chose not to buy a home during this time may benefit from the real estate market’s traditional down time in December, January, and February. When there is a down time in the market, sales are slower. This will be amplified by the market, no longer being able to benefit from the credit, which means there will likely be some great steals for home buyers.
Do you plan on taking advantage of the credit before November 3oth?