REALTOR RUMINATIONS

Before you disregard this Tax Credit opportunity because you know that you are not a First-Time Homebuyer make sure that you are aware of all of the facts!  The 2009 version of this bill has added several improvements over the 2008 edition.

· A first-time homebuyer is defined as anyone who has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.

· Tax Credit Increased from $7500 to $8000

· Home purchase must be between January 1, 2009 and December 1, 2009

· Any home purchased for $80,000 or more qualifies for the full credit.  Homes less than $80,000 get a credit of 10% of the cost of the home.

· Adjusted Gross Income (AGI) restriction of $75,000 for a single filer and $150,000 for married couples filing a joint return.  For singles and married couples with income in excess of the restrictions the credit phases out at $95,000 for singles and $170,000 for married couples.

· The property must be a principal residence and must be located in the United States.  A principle residence is generally defined as one that you live in more than 50% of the year.

· The property may be single-family detached, a condo or a co-op, a townhome, or a new or existing dwelling.

· If the home is held for three years then the tax credit does not have to be paid back. 

  We know that we have given you the very basic facts about this program.  As with anything from the government that could effect your taxes  we advise you to consult a tax professional to determine the full tax impact that any home purchase you make might have. 

  One general observation about the housing market in Colorado.  Mortgage rates are the lowest that I have ever seen them and in general home prices are lower than they have been in  past 20 years.  What better time to consider buying a home!