Florida - The First-Time Home Buyer Tax Credit Dates to know…
As covered on Fox 35 News:
Email Chris your questions now.
The government’s $8000 First-Time Home Buyer Tax Credit available for Lake Mary Real Estate expires Nov. 30 — a short sixty-ish days from now.
When you consider that in the “New World” of Lake Mary Real Estate financing, closings can take up to 45-60 days, first-time buyers have 2 weeks at most to find a home.
Buyers that do not have a fully-executed contract by Oct. 15 have little chance of meeting the November 30 deadline and, therefore, little chance of claiming the tax credit. At best - they are rolling the dice.
Email Chris your questions now.
This is especially true for Lake Mary real estate purchases involving short sales… in fact if you are not under contract by around Oct. 7th - you can forget closing on a short-sale in time! My Opinion.
Congress passed the First-Time Home buyer Tax Credit program as part of the 2009 economic stimulus plan. IRS Form 5405 outlines the program criteria and includes the following stipulations:
- A Home buyer can’t have owned a “primary home” in the past three years
- The home can’t be bought from a family member such as a parent, spouse, or child
- The adjusted gross income [AGI] for the household must be below $75,000 [single tax filers] and $150,000 [joint tax filers]
The credit is capped at $8,000 or 10% of the purchase price, whichever is less. And don’t forget – the First-Time Home Buyer Tax Credit is a true tax credit. It’s not a deduction.
Email Chris your questions now.
Follow me here - this means that a tax filer who claims the full $8,000 and whose typical tax liability is $5,000 would receive $3,000 cash from the IRS and have their $5000 obligation wiped out. If you have already paid your 2008 taxes and are filing an amended tax return to receive the credit, you would get the whole $8000 from the US Treasury.
If you can’t close by November 30, 2009, though, you can’t claim the credit.
The clock is ticking. If you’re planning to use the First-Time Home Buyer Tax Credit, the time to act is now.
Chris is Florida’s #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the three leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, and is the resident “Money Guy” on Realty Resolve.
Chris can be found at
Orlando FHA Loans,
Chris[at]OrlandoMortgagePro[dot]com,
or by calling 407.377.0500 x 210
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[...] In other words… it is important to engage in the Orlando Real Estate process quickly if you hope to benefit from the First-time Home Buyer Tax Credit before it expires. [...]