First-Time Home Buyers NOW IS THE TIME To Act Quickly
August 21, 2009
Since Congress passed the American Recovery and Reinvestment Act earlier this year, many have seized the opportunity offered by the $8,000 tax credit for first-time home buyers. When you factor in today’s historically low interest rates and housing affordability with the financial incentive from the government, it’s easy to see why so many first time buyers have taken advantage of this chance to realize their dream of homeownership.
However, the ability to utilize this $8,000 tax credit will not be available to San Antonio homeowners much longer. To receive the tax credit, a first-time buyer must purchase and the transaction must close before 11:59 p.m. on November 30, 2009. Since closing on a home generally takes anywhere from 45-60 days, that leaves prospective buyers a little more than a month to take advantage of the this financial opportunity.
Buying a home now might not only be the opportunistic thing to do but also the more practical decision. In many instances, renting can actually be more expensive than buying. By choosing a fixed-rate mortgage, individuals can lock in to a lower payment that will stay the same unlike rent which can increase yearly.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit amount of 10 percent of the cost of the home, up to $8,000. Above those income levels, and the amount declines after that.
First-time buyers, as well as those who haven’t owned a home in the last three years, can take advantage of the credit.
You can claim the credit on your 2008 taxes by filing an amended return. Or you can wait and file it for the credit with your 2009 taxes next spring. As with any tax law, individuals should check with a tax advisor to discuss any specifics regarding the use of this provision.
