In writing my blog a few days ago, I forgot to mention that there is a tax credit that will apply to first time home buyers who buy a home between now & June 30, 2009. The total amount a person may be eligible for is $7,500. The eligibility is dependent upon income. This is a great article from the National Association of Realtors (NAR) that demonstrates the credit.
The tax credit was designed to try and jump start the real estate market, as well as clearing out of unsold inventory. The government figures that now, more than ever- first time home buyers need to have an incentive to buy in today's market. The way it works is simple. Buy a house now (any house will do!). It can be new or existing. It can be in any location, in any condition. The stipulation to qualify for the tax credit is that it must be your first home, or you must not have owned a home for the last three years, and you must promise to live in the home (owner occupied). The IRS will deduct $7,500 from your tax bill (if filing jointly), or $3,500 minimum as an individual filer. You may qualify for the entire amount if you're filing individually if your income is less than $75,000 per year.
If you already own a home, sorry- you don't qualify for this tax credit. But if you sold your house and have been renting (instead of owning a home) for at least three years, you do qualify. This is essentially like a loan, that you will be required to pay back over time. Starting in the second year, and continuing through the 15th year it must be paid back. This amounts to $500 per year if you keep it for 15 years. If you sell before the end of 15 years and have no gain on the sale, you will not be expected to pay it back.
If you've been thinking of buying a home in Tucson, please don't hesitate to call me for the details of this great incentive! Please give me a call if you're thinking of buying or selling a home in Tucson.
Written by Sarah Ley,
BSBA, ABR, CRS, CNHSA
Realtor with Long Realty Company
Direct: (520) 404-0544
http://www.sarahley.longrealty.com/
sley@longrealty.com
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