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First-time homebuyers have an exclusive opportunity this year to receive money back when they buy their first home - creating even more reasons to purchase Washington real estate. If you've had your eye on a Seattle-area condo or island home, this is an excellent time to make your move.
The new $787 billion stimulus bill recently signed into effect by President Barack Obama opens the door for many first-time homebuyers - and Washington real estate salespeople who will help buyers make their purchases. Thinking about buying your first home? Here are some things you should know about the first-time homebuyer tax credit:
- You have to qualify as a "first-time homebuyer" - This means that you haven't owned a principal residence for three years prior to buying a home this year. If you own or have owned a rental property or vacation home that is not your primary residence, you can take still take advantage of the tax credit.
- You have up to $8,000 available to you - The credit amount is determined by taking 10% of the original purchase price (not to be greater than $8,000). The best news? Unlike the previous $7,500 tax credit, this one does not have to be re-paid.
- You have to purchase your home this year - The tax credit only applies to Washington real estate properties purchased during 2009 - from January 1 to December 31, 2009. If you just bought your home in late December 2008, you will not qualify. (Note: The date of purchase is the day the title is transferred or when the home "closes.")
- You can purchase any kind of property - Previous tax credits placed limits on the types of real estate you could buy; however, the new program lets you buy any type of property, including a condo or townhouse - putting Washington real estate even more within reach.
- You have to be within the income requirements - There are some income limitations for the new first-time homebuyer tax credit. As a single buyer, your modified adjusted gross income must be $75,000 or less; as a married couple, your modified adjusted gross income must be $150,000 or less. If you earn more than these amounts, you will not be eligible for the tax credit; however, there may be partial credits available to you. Contact a Washington real estate salesperson for details.
- You have to own your new residence for three years - Part of the stipulation of the text credit program is that you have to own your home for at least three years. If you decide to move before the three years is up, you will have to return the credit.
- You might receive a refund if you don't have any tax liabilities - This means that you can claim the homebuyer credit even if you have little or no federal income tax liability to offset the credit. In this case, the government will send you a check for a portion or all of the refundable tax credit.
You should start planning now to take advantage of the new first-time homebuyer tax credit. It is only available for a limited time and provides you with a unique opportunity to more readily afford a new home - with exclusive tax benefits. Contact a Washington real estate salesperson today and determine the type of house that is right for you. Now is the time to claim your piece of Washington real estate!Labels: first-time homebuyer, homebuyer tax credit, purchase your home, stipulation of the text credit program, tax credit, Washington real estate