Colorado Springs - First-time homebuyers are entitled to an $8,000 refund on their 2008 tax return for 2009 home purchases.
Don’t miss out on this opportunity for an $8,000 tax refund if
you’re thinking of buying a home this year. It’s not often that the
Feds offer free money, and unlike prior tax credits, this one doesn’t
need to be returned!
The Feds are offering an $8,000 refund for first-time homebuyers who
purchase homes between January 1 and November 30, 2009 regardless of
your tax bill. This is a refundable tax credit, so even if you only
paid $1,000 in taxes for 2008, you’ll still get the entire $8,000
refund.
If you’re considering buying a home while the prices are low, this
is a great opportunity to get a refund of all or part of your down
payment. And, as an added bonus for FHA buyers, you can borrow part of
your down payment from friends of family members and then use this
credit to pay them back! This means that if you’re an FHA buyer, you
can buy a home for $228,500, use someone else’s money for your down
payment, and get that entire 3.5% down payment back from the Feds as a
tax refund. SWEET!
So, what’s a first-time home buyer? The IRS defines a first-time
homebuyer as someone who has not owned a home as their principal
residence within the last 3 years (this does include spouses). You may
have owned a home before, or you may never have owned a home - it
doesn’t matter.
The tax credit is paid after you file your 2008 tax return. If
you’re planning on buying a home and don’t want to amend your return
later, you can extend your time to file
through October 15, 2009. Remember that you must close escrow by
November 30 in order to qualify for this credit, so don’t wait til the
last minute to start searching for homes!
If you’re looking at short
sales (or preforeclosures), plan on it taking at least 2 months and up
to 6 months or more to close escrow on your new home, since the banks
do take time to process these approvals.
Clearly this tax refund isn’t
geared towards purchasing McMansions, but you can still buy a nice home
in the Colorado springs area for a reasonable price while the market is
still gearing up for recovery mode. And, to make it even easier to buy
a home, interest rates are now below 5% once again!
What’s the catch? The full credit is available only to homeowners
with $75,000 in adjusted gross income (AGI) for singles and $150,000
for a joint return, and phases out at $95,000 and $170,000,
respectively. You’ll need to own your new home for 3 years in order to
avoid the recapture provisions, which may require returning all or part
of the refund to the IRS.
As always, be sure to consult your tax
advisor to make sure that you qualify for this tax refund and to
clarify any questions that you may have regarding the recapture
provisions.
If you are ready to buy a home in Colorado Springs or in the process of deciding if now is the right time for you to buy, I want to assure you that now is the BEST time! With interest rates and home prices at an all time low and $8,000 at your finger tips - THIS IS AN OPPORTUNITY OF A LIFETIME!
For Buyers
- Get a FREE Credit Report (valued at $50) when you use our preferred lender
- Seller paid appraisal (value $400 - we always ask the seller to pay up to 3% in closing costs with the appraisal as part of the closing costs)
- Down payment assistance programs available
- Easy pre-qualification for VA, FHA CHFA, Conventional & other creative new loan programs
- Search the entire MLS on your complimentary personalized website available 24/7
- Complete Representation, Negotiation & Protection at NO COST TO YOU!!
Contact me by email today for more details at: Juanita@JuanitaSimkins.com or call me at 719-229-5770