Out of all of the government spending to help the economy in 2009 and 2010, the housing tax credit has been the best.
The newest house buying tax credit is for home owners who have owned their current home for five years and decide to buy a new home as their primary residence.
The current home owner tax credit refunds the home buyer up to $6,500 back when their taxes are filed. Even if the home purchase occurs in 2010, within the tax credit deadlines, the home purchase can be filed on the 2009 tax return.
The purchase price cap for this tax credit is $800,000. The $8,000 tax credit for first-time home buyers was wildly successful in 2009. It led the way to a year of home sales gains in the Chattanooga area. The number of homes sold in November of 2009 was up by 25% over the home sales in November of 2008.
The first-time home buyer tax credit has been extended and the five-year home owner tax credit will also apply as long as a house is under contract by April 30, 2010, and closed by June 30, 2010.
This is a rare opportunity to buy a home at a lower price, with a low interest rate, and get money back from the government. If you have your eye on a house and if buying a home is a financial option for you, don’t wait until this tax credit is over.
Don’t wait for the market to hit bottom either, because that has already happened. Look at the great deals in the Chattanooga area on www.SearchChattanoogaArea.com. Feel free to contact me with any questions that you may have or to receive a free brochure written by the National Association of Realtors about the home buyer tax credits.