Time Is Running Out On Money-Saving Benefits That Expire In 2009
The end of the year is not far off. There are a number of Stimulus Package benefits -- and other time-sensitive programs -- that expire at the end of this calendar year. (Some tax benefits require action by year end but kick in when you file your 2009 taxes next year.)
Now is the time to take advantage of these benefits and save more money while you can. In this special issue, we outline many of the home-related money-saving possibilities that may be available to you this year.
Don't delay! Make sure your home buying, selling and remodeling plans in 2009 meet the eligibility requirements and deadlines to qualify for each program's benefits. Time is of the essence if you want to save some money now and enjoy living with your savings.
Note: The information provided here may have changed since press time. Be sure to call us for updates or for answers to any questions you may have. We'll be happy to talk with you -- at no obligation to you and in complete confidence! Of course, we always recommend consulting a qualified tax professional or financial advisor about your particular financial situation.
$8,000 First-Time Home Buyer Tax Credit
Qualified first-time home buyers have a unique opportunity to get up to an $8,000 tax credit (limited to 10% of the purchase price of the home) or up to $4,000 for each married individual filing separately. This credit does not have to be paid back but you must close/settle on a principal residence on or before November 30, 2009. (Any qualified first-home purchase is eligible that settled/closed January 1, 2009 through November 30, 2009.)
Technically, you don't really need to be a first-timer, just a qualified buyer who has not owned a principal residence in the three years prior to the home purchase closing/settlement date. The full credit is available to married joint-filers (and equivalent tax-filing status) with Modified Adjusted Gross Income (MAGI) up to $150,000, and to single filers with MAGI up to $75,000. The credit is phased out and disappears completely for MAGIs more than $170,000 (joint filers and equivalent) or $95,000 (single filers).
Don't delay; once you locate a home you want to buy, it will take some time to negotiate with the seller, arrange for mortgage financing and accomplish the tasks required by your contract and your lender -- appraisal, survey, inspections, title search, etc.
Give me a call to make certain the deadline hasn't been extended by Congress since this information went to press.
Also, ask your lender about any federal, state or local programs available in our area to convert your anticipated tax credit into cash for settlement costs or additional down payment funds.
