Today I welcome Chris Hill as my guest author. Chris & I have worked together for years and he is a most trusted resource when it comes to strategic mortgage planning. Thank you Chris for providing this valuable information. I hope to see you become a regular contributor here at the Clark County Real Estate Guide.
About the program
This is a summary of the First Time Home Buyer’s tax credit included in the American Recovery and Reinvestment Act of 2009. The tax credit is for first-time home buyers only. A first time home buyer is someone who has not owned a principal residence during the three-year period prior to the purchase. The tax credit is available for homes purchased January 1, 2009 through November 30, 2009.
Tax credit better than tax deduction
Please remember that a tax credit is far more valuable than a tax deduction. For many people an $8000 tax credit is more valuable than a $32,000 federal income tax deduction! While a deduction reduces your taxable income, a tax credit reduces your taxes directly. Further, a tax credit can be paid to you even if you have not paid any taxes! For example, if you would have otherwise received $500 back on your 2009 tax return, you would now receive $8500 back (if you meet all conditions of the program and qualify for the $8000 credit).
A few other details…
The tax credit does not ever have to be repaid under most circumstances. If the home purchased is less than $80,000, the tax credit is equal to 10 percent of the home’s purchase price (up to the maximum $8000 credit). Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. The credit phases out as income increases above those levels.
There are more details and conditions as well. To find out more about this great opportunity please contact Chris Hill.
About the author: Chris Hill is a Strategic Mortgage Planner with Home Lending Group in Vancouver, WA. Chris is a husband and father of two teenage sons. He enjoys golf and time with his family and friends. Follow Chris on Twitter @RealChrisHill.
(Thanks to Johnny Vulkan for the $cash$ photo)