First Time Home Buyer’s Tax Credit – Time is Running Out!

If you are a first-time home buyer and are looking to purchase a home in Charlotte North Carolina, it has never been a better time to do so. The American Recovery and Reinvestment Act of 2009 authorized a tax credit of up to $8,000, available for qualified first-time home buyers.

Home buyer Tax Credit is Different from the Earlier $7,500 Home Buyer Tax Credit

Qualified first-time home buyers will be able to claim a credit worth $8,000 or 10% of the value of the home (whichever is less) on their 2008 or 2009 taxes. What makes this home buyer tax credit different from the earlier $7,500 home buyer tax credit Congress enacted in July of 2008 is this tax credit doesn’t have to be repaid. It is a ‘true tax credit’ whereas the previous “credit” was more like an interest-free loan because it required repayment over a 15-year period.

Qualifications for First-time home buyers Tax Break

In order to qualify, first time home buyers must:

• Purchase the home on or after January 1, 2009 and before December 1, 2009.
• The home must be used as their principal residence for at least three years.
• The purchase price of the home must be $80,000 or greater.
• Buyers must make less than $75,000 for singles or $150,000 for couples (higher-income buyers may qualify for a partial credit).

Applying for the First-time Home Buyer Tax Credit

According to The National Association of Realtors, 1.4 million first-time home buyers have already taken advantage of the tax credit this year. To apply for the credit is easy. All you have to do is claim it on your on your federal income tax return at the end of the year. You are not required to fill out or file any additional forms.

First-time home buyers should complete IRS Form 5405 in order to determine their home buyer tax credit amount then claim that amount on line 67 of the 1040 income tax form for 2009 returns. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.

First-time Home Buyer Tax Credit is Good for the Economy

According to estimates by Lawrence Yun, Chief Economist for the National Association of Realtors, the first-time home buyer tax break will bring an additional 300,000 new home buyers into the market. New home buyers can use the credit for unexpected repairs and buy items for their home, which will further stimulate the economy.

Outstanding Opportunity for First-time Home Buyers

Leigh Brown, Charlotte North Carolina real estate expert, would like to remind all first-time home buyers that this tax credit provides an outstanding opportunity for those looking to purchase a home in Charlotte North Carolina.  However, “time is running out” to take advantage of it. There are only 59 days left!!

If you are looking to buy a home in Charlotte, North Carolina and would like more information about the first-time home buyer tax credit and homes for sale in Charlotte, NC – please contact real estate agent (aka Diva) Leigh Brown, a native of Concord, NC in the Charlotte area.

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