Stanton Homes - Building Green in the Triangle

Update: It's a Done Deal.

Read all about the Tax Credit Extension and Expansion Here!

First Time Homebuyer Tax Credit Extended | Tax Credit Expanded to Additional Homebuyers

Click on the link above to get all the details about the tax credit expansion, and whether or not YOU will qualify.

Beware - this is not a done deal yet.  Based on this story, it looks like the government has made a partial decision on extending the tax credit.  However, even if a bill has passed the Senate, there is a different bill circulating in the House of Representatives.

Once those bills come together, the President still needs to approve it.  Remember that old Sesame Street episode about how a bill becomes a law?

Read carefully! 

Raleigh Relocation Package

Home Buyer Tax Credits - Differences Between Programs

Explaining the 2008 Program Versus 2009 Program - How Do They Work?

Walter Updegrave, Senior Publisher of Money Magazine, has written an excellent explanation and comparison of the two very different tax credits for first time homebuyers.

Did you buy a home between April 8, 2008 and December 31, 2008?  Walter explains how the 2008 homebuyer tax credit works, and what the difference is between buyers who purchased last year, and those who plan to buy a new home this year.

Bought a home after January 1st, 2009?  Walter talks about how you can use the Home Buyer Tax Credit on your 2008 returns - and possibly get a huge return this year instead of next year!  But be aware - this program has an unexpected expiration date.   

Read the full story here.

And remember - there is a loophole on the new tax credit.  Homebuyers will qualify for the $8,000 credit if they haven't owned a home for the past three years.

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Tax Credit - Buying a Home

$8,000 Tax Credit Now Available

First Time Homebuyers and Others Qualify

The "American Recovery and Reinvestment Act of 2009," passed the House and Senate on Friday, February 13,2009 and was signed into law by President Obama on February 16, 2009. 

An $8,000 tax credit (NOT a loan) is now available to many homebuyers.

Quick Facts - Homebuyer Tax Credit

 - Homebuyer must be a first time homebuyer OR have not owned a home for the past 3 years  

- Purchase must be for a principle residence (no investment homes)

- Home must be purchased on or after January 1, 2009

- Does not require repayment as long as homebuyer stays in the home at least 3 years. 

- Applies towards single family detached homes, condos, and townhomes.

- Income cannot be greater than $75,000 yearly for a single buyer, or $150,000 yearly for a married couple.

- Credit is for $8,000 or 10% of purchase price, whichever is less.

The credit is only available for a limited time.   

What Does a Tax Credit Mean?

The credit reduces your tax liability, that is, the amount of taxes you are required to pay. Depending on your tax withholdings, you could get a bigger refund or owe less in taxes when you file.

For example:

If your total tax bill is $5000, you've withheld $4,000 throughout the year, and you qualify for the $8,000 tax credit, this is how your tax return might look.

$4,000 paid

-$5,000 owed

Owes $1,000.

Claim $8,000 tax credit.

Refund of $7,000. 

In this case, the new homeowner would receive a check of $7,000 from the IRS after filing.

Read all the details of the bill here - most of the pertinent information is on page 24.  http://thomas.loc.gov/home/h1/Recovery_Bill_Div_B.pdf

Request a First Time Homebuyer Packet - Raleigh/Triangle Area

You may also be interested in:

Jobs in the Raleigh Area

Triangle Area Market Reports - How's The Real Estate Market in Raleigh?

Shopping in the Raleigh Area - What Kind of Shopping Is There?

Raleigh Relocation Package - All About the Raleigh Area!

Which Part of the Triangle is Cheapest to Live?  Property Tax Guide