Editorial

Front Page - Friday, July 31, 2009

Real Estate Facts

Elwynn Schwartz

ALERT: Buyers only have until December 1, 2009 to take advantage of the first-time buyers tax credit authorized in the American Recovery and Reinvestment Act of 2009. Consult now with your tax advisor and real estate representative to get moving!
Most first-time buyers (who haven’t owned a home in three years) will qualify. If you’re married, you and your spouse must both satisfy this description.
There are income limits for claiming the credit of up to 10 percent of the home's purchase price, which maxes out at $8,000. If your modified adjusted gross income (on IRS Form 1040, line 37) is less than $75,000 for individuals or $150,000 for married filing jointly, you can claim the maximum credit. For incomes up to $95,000 or $170,000 respectively, the credit is reduced.
This is not a tax "deduction," but a tax "credit," meaning that the amount you claim is reduced from your total tax bill! If you will owe less than $8,000 on your 2009 return, you'll get a REFUND from the IRS for the difference!
The biggest news is that in response to pressure from the National Association of Realtors, FHA lenders will allow buyers to use the credit to cover closing costs, buy down the rate or as additional down payment!
I urge you to take this money from the government and make your move before December!
Elwynn Schwartz is the owner of Chattanooga Real Estate Consultants she may be reached at 423.894.3050.

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