Tamara Pivonka
Phone:
509-953-1778
Mobile:
509-953-1778


Fax:
509-232-7364
Email

Office:
Spokane
802 N Washington St
Ste 100
Spokane, WA 99201

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Colbert/North Spokane

4409 E. Eagles Glen Lane/Colbert

First Time Home Buyer Credit

2009 Tax Credit for First Time Home Buyers


Would you like $8000 back on your taxes this year?


We've been hearing a lot of questions about the new tax credit. Who qualifies? How does it work? How long will it last? In this special edition video, we’re taking an in-depth look at the $8,000 tax credit for first time home buyers.


According to the new legislation, a first time home buyer is defined as someone who has not owned a principle residence in the past three years.  Those three years are counted up to the date you take possession of the house you buy in 2009. This means that even if you’ve owned a home in the past, you can still take advantage of the tax credit as long as you haven’t purchased a primary residence since 2006.

The same goes for married tax payers - they must both be first time home buyers.  For non-married joint buyers, only one of them needs to be a first time home buyer, or someone who hasn’t owned a primary residence in the past three years.

Qualifying homes include:
  • New homes
  • Homes that are being re-sold
  • Condos
  • Townhomes
The main restriction is that the credit is only for those who buy a home as their primary residence. So investors looking to buy a rental property would not qualify for the credit.  However owning a vacation home or a rental property already does not neccessarily disqualify you from taking advantage of the credit (as long as you haven’t owned a primary residence in the past three years).

A Look at the Numbers

The tax credit is equal to 10% of the purchase price of the home, up to $8,000.   The amount of the credit you can qualify for is related to how much money you earn. Here’s how the credit is scaled:
  • Single home buyers earning 95K or less qualify. If you make 75K or less, you qualify for 100% of the $8000. If you make halfway, 85K, you qualify for 50% or $4000. The credit phases out gradually between 75K and 95K of income. For example, if you make halfway between the income limits, 85K, you qualify for up to half of the credit.
  • The same rate applies for married couples and joint buyers whose incomes limits are doubled to $150,000 to $170,000. Married couples or joint buyers whose incomes are less would receive the full $8000 credit. At an income level of $160,000, halfway between 150 and 170, the buyers would receive half the credit – or $4,000. And the credit phases out altogether at $170,000.
    The new tax credit coupled with historically low mortgage rates and rising affordability, offers buyers a great opportunity if they act fast.

    If you’re interested in learning more about the new tax credit or about homes in your area, speak with a local real estate agent soon.
     
  • This credit represent a significant amount of money. One of the biggest points of difference for the new credit from the one congress passed in July of 2008, is that the new credit does not have to be paid back.

    In addition,     it's refundable, which means that if you’ve paid all your taxes as you go with an automatic payroll deduction, you would receive an $8,000 check from the IRS.

    If you're committed to buying a house in 2009 and want to use the $8000 tax credit for a downpayment, consult with your certified public accountant.

    In Summary

    Qualifying home buyers will need to make their home purchase between January 1, 2009 and December 1, 2009. And the home has to remain their principal residence for the following three years.  


  
The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources.  You should not treat any opinion expressed on This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion.  Keller Williams Realty, Inc. does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind.  All information presented herein is intended and should be used for educational purposes only.  Nothing herein should be construed as investment advice.  You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.  All investments involve some degree of risk.  Keller Williams Realty, Inc. will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate. 

 

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Thanks for starting your Spokane real estate search with us. This Spokane Real Esate website is full of information for you whether you are looking to buy or sell.  After you have had the chance to review this information, contact me so we can tell you more about how we can help.  We appreciate the opportunity to earn your business.

Todays Tips:  Staging Your Home To Sell

Try out these helpful styling tips taken from Setting the Stage - REALTOR® Magazine Online. They've compiled the best tips from stagers and real estate pros—things you can do for little or no expense—to put a home in prime showing shape.

  • Clear out closets and clutter—sellers can give away or pack up toys, linens, and small kitchen appliances to store offsite. Buyers are also forgiving of storage boxes neatly tucked away in a garage or basement.
  • Focus most on the most visible areas—the foyer, kitchen, living room, master bedroom, and family room.
  • De-personalize the home by removing photos, mementos, and dated items.
  • Use plants in colorful pots or inexpensive wicker baskets to fill in empty spaces.
  • Look to home catalogs for little details on beautifying the home. For instance, group books, pictures, and objets d’art appealingly on bookcases.
  • Try angling one or two pieces of furniture slightly and move furniture 4 inches to 6 inches from the wall to create more interesting room spaces.
  • Put away large collections— porcelains, plates, and so on.
  • Remove valuables, prescription medicine, collectibles, and breakables.
  • Trim trees, prune shrubs, and make sure the lawn is mowed and watered regularly.
  • In summer, turn on the sprinklers for five minutes, 30 minutes before the open house. It makes the lawn and driveway sparkle.
  • Refrain from cooking anything that leaves a distinctive odor, such as fish, garlic, or cabbage.
  • Hire a professional service to clean the home, including the carpets and the windows.
  • Set the dining room table with attractive linens, dishes, and stemware.
  • Arrange fresh or silk flowers throughout the home.
  • Light a fire in the fireplace in fall and winter.
  • A mirror in a pretty frame can make a small room feel more open.
  • Use as much natural light as possible. Add extra lamps in dark rooms or corners.
  • Make functional repairs—fix dripping faucets, sticking doors, and broken fences.
Bring in another pair of eyes—even if it’s not a professional stylist. This person may see problems you and have missed.
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