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Get Shopping: The $8,000 Tax Credit For Home Buyers Isn't Permanent

 This re-posting is courtesy of Shameka Tankerson, a mortgage financing specialist from Redlands, California.  Thanks for sharing, Shameka.     

With Congress reaching agreement on a $789 billion stimulus package for Americans and the President expected to sign it into law, the clock may be ticking for this year's home buyers and homeowners.

 

The first-time home buyer credit expires August 31, 2009With Congress reaching agreement on a $789 billion stimulus package for Americans and the President expected to sign it into law, the clock may be ticking for this year's home buyers and homeowners.

The package contains two benefits related to housing.

The first provision is fairly well-known.  It gives first-time home buyers an $8,000 tax credit provided they purchase a home between January 1, 2009 and August 31, 2009. 

This is a true tax credit.

To reduce misuse and abuse, however, the $8,000 credit is contingent on home buyers holding property for at least 3 years.  If the home is sold in fewer than 3 years, the tax credit must be repaid to the government.  It's also worth noting that the date range applies closings and not sales agreements. 

Closings must occur within these 8 months to be eligible.

A second noteworthy feature in the package is that the stimulus package gives existing homeowners incentive to "green" their homes.  With available tax credits for energy-efficient windows and doors, furnaces and insulation, homeowners can claim larger tax deductions based on home improvement, up to $1,500.

But, just because the government provides housing-related tax benefits doesn't mean you should just act on them blindly. Tax liability is a highly individual item and you may be ineligible for any number of reasons.  Be sure to discuss your plans with a qualified accountant before committing to a plan.

Comment balloon 10 commentsKaren Anne Stone • February 15 2009 05:24PM

Comments

Hi Karen Anne...Hopefully this will make a difference for many, many first-time buyers. 

We need even more help in the housing industry.  Let's cross our fingers.

Kate

P.S.  Thanks for the re-blog.  I"ll comment on Shemeca's post.

Posted by Kate Elim, Realtor 540-226-1964, Selling Homes & Land a (Dockside Realty) almost 9 years ago

Karen,

I wasn't aware of the "green" incentive.  Thanks for reposting this tidbit.

Posted by Christine Donovan, Broker/Attorney 714-319-9751 DRE01267479 - Costa M (Donovan Blatt Realty) almost 9 years ago

Karen,

Thanks for sharing this info.  I wasn't aware fo the green incentive either.  I just pray that this stimulus package will help the housing market.

Posted by Cindy Crutcher, Real Estate Broker - Exit Realty Crutcher Lawrenceburg KY (Lawrenceburg KY Foreclosures & Government Owned Properties) almost 9 years ago

Karen - I understand that this $8,000 is only effective through August of this year.  But is retroactive to this January 1st (how will retroactive hindsight act as a stimulus?). 

However, I also heard that it doesn't need to be paid back, like the previous first time buyer credit of $7,500.

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) almost 9 years ago

Karen Anne, First I and foremost I hope your health is still improving, I miss every day Karen Anne. I agree with Myrl I can't see how making the credit retroactive can be a stimulus.

 

Posted by Paul S. Henderson, REALTOR®,CRS,, Tacoma Washington Agent/Broker & Market Authority! (RE/MAX Professionals.) almost 9 years ago

Karen Anne:  Thanks for posting the details.  Here's to a busy Spring and Summer.

Posted by Chris Ann Cleland, Associate Broker, Northern VA (Long and Foster REALTORS®, Gainesville, VA) almost 9 years ago

Thanks for summarizing this for us and providing the link.  Small world - notice you were in the Mentor Ohio arena - my first home was in Mentor-on -the-Lake.  Great area, good times.

 

http://www.poconolandandhomes.com

 

Posted by R.E. Renée Hoover, Salesperson, Poconos, Pike, Wayne, Monroe Counties, PA; PA/NYS (Century 21 Geba Realty, Milford, PA; Licensed in PA & NYS) almost 9 years ago

Excellent summary! Thank you for sharing this with us. Especially the Green Incentive part - I have not yet read the entire brief.

Posted by Maria Morton, Kansas City Real Estate 816-560-3758 (Chartwell Kansas City Realty) almost 9 years ago

This certainly was an important post to reblog.  I did not know about the "green" credit.  I am hearing that lenders are getting phone calls, so maybe this is just what first time homebuyers need to get them to buy.

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) almost 9 years ago

Thanks for posting this information.  I didn't know about the green credit either.  How are you feeling? Take care.

Posted by Adele Irving - Easton Area Homes (Prudential Patt, White Real Estate) almost 9 years ago

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