Gift of money for home buyers
Canton and Plymouth, Michigan home buyers recently learned the $7,500 tax credit can now be a tax free gift and is extended to other buyers as well as first timers.
Originally the bill was passed last summer, as a part of the Housing Recovery Act, to encourage first-time home buyers to purchase homes within a certain amount of time, hoping to boost the housing market. That legislation required that the $7,500 tax credit be repaid over 15 years, making it more of a no-interest loan. The stimulus bill now under consideration would make that tax credit a true credit that doesn’t need to be repaid at all! Additionally the rules for who qualifies have been greatly relaxed.
The news is spreading fast among the Canton, MI home buying community. The combination of this money incentive and great house values from short sale houses is prompting people to spring into action!
To be eligible, buyers cannot have owned a home for the past three years, and the new home has to be used as a primary residence. The credit slowly phases out if income rises above $75,000 for singles and $150,000 for couples. It disappears entirely at $95,000 for singles and $170,000 for couples. To apply for this credit, you must claim in on your 2009 tax return. It is that easy! As long as buyers do not sell for at least 36 months, they keep the $7,500. The credit is also refundable, meaning if your total tax bill came to $4,000 you can still qualify for a full $7,500 refund!
Timing is also critical. The current proposed bill requires that you must have purchased the home between April 9, 2008 and July 21, 2009. Newer proposals have that date stretch out to August 2009. The point is take advantage of this gift before you forget about it and it disappears!
The Bittinger Team is optimistic that the Stimulus
Bill and other financial incentives are creating
the best home buying opportunities in months.
When Trust and Experience Matter!
(734)-459-2600
Bittinger Team - Short Sale Experts