Tax credits for first-time buyers of Saline real estate

Your part of the stimulus plan in action!

Did you know that you may qualify for tax credits for first-time buyers of Saline real estate?

Last week, the President signed the stimulus package (officially now called the "American Recovery and Reinvestment Act of 2009") which included revisions to an existing first-time home buyer's tax credit. Here's a chart with some of the details, courtesy of the National Association of Realtors (NAR).

FIRST-TIME HOMEBUYER TAX CREDIT
As Modified in the American Recovery and Reinvestment Act
Major Modifications Bolded
February 2009

FEATURE	CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008	REVISED CREDIT - EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009
Amount of Credit	Lesser of 10 percent of cost of home or $7500	Maximum credit amount increased to $8000
Eligible Property	Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.	No change All principal residences eligible.
Refundable	Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser.	No change Purchasers will continue to receive refund for unused amount when tax return is filed.
Income Limit	Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000).	No change Same income limits continue to apply.
First-time Homebuyer Only	Yes. Purchaser (and purchaser's spouse) may not have owned a principal residence in 3 years previous to purchase.	No change Still available for first-time purchasers only. Three-year rule continues to apply.
Revenue Bond Financing	No credit allowed if home financed with state/local bond funding.	Purchasers who utilize revenue bond financing can use credit.
Repayment	Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing.	No repayment for purchases on or after January 1, 2009 and before December 1, 2009
Recapture	If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale.	If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.
Termination	July 1, 2009 (But note program changes for 2009)	December 1, 2009
Effective Date	Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year.	All revisions are effective as of January 1, 2009

You can download a PDF version of this home buyer tax credit comparison here.

If any of these situations fit you, then you may qualify for tax credits for first-time buyers of Saline real estate!

If you like what you're reading here, please subscribe. Thanks!

If you have questions about your specific situation, or if you're considering buying any Saline real estate, you owe it to yourself to take advantage of my experience in the Saline market. I'd be happy to meet with you! Just give me a call at (734) 476-2063, or send an e-mail, "Vance (at) SalineMichiganRealEstate (dot) com".

You can search for homes and condos in Saline here.

Follow me on Twitter!

Saline Sunflowers!
Saline Michigan Real Estate - Rustic Glen golf course
Vance's Bookshelf
How to choose the best Saline Realtor for your next home purchase or sale
Fishing on the Trophy Cup

http://www.salinemichiganrealestate.com/004AAE