HOMEBUYERS TAX CREDITS UP TO $8000
4/1/2010
Source: Mountain Homes and LivingAuthor: Brenda Freeman, Broker Associate
Thanks to incredibly low interest rates and two generous homebuyer tax credits, there’s never been a better time to buy a home in Grand County.
In an effort to bolster the U.S. housing market in 2008 and 2009, the federal government offered a “first-time homebuyer credit” of up to $8,000, a program that was wildly successful. In the fall of 2009, the program was extended into 2010 and expanded to include a $6,500 credit for homebuyers who were “repeat buyers” or “moving up.”
Act Now - The Programs End Soon
Both programs are in place now, but time is running out. To qualify for the $8,000 first-time homebuyer credit or the $6,500 repeat homebuyer credit, you must have a binding sales contract by April 30, 2010 and close by June 30, 2010.
The tax credits are good for up to 10% of the purchase price of your home, and you’re eligible as long as your individual income is less than $125,000 per year, or your combined income with your spouse is less than $225,000. If you exceed these income levels, you may still be eligible for a portion of the credit.
A Tax Credit Is Much Better Than A Tax Deduction
It’s important to note that these incredible homebuyer programs involve “tax credits,” not “tax deductions,” which makes a significant difference. As a credit, you’ll be able to subtract that amount from the federal income tax you owe the government. And, if for some reason, you don’t owe the IRS as much as the homebuyer credit is worth, you’ll get a refund check for the difference.
Use The Credit For A Down Payment
To further bolster the homebuying programs, 18 states (including Colorado) found ways to make these tax credits available to buyers at the time they’re purchasing homes, rather than forcing them to come up with the cash and wait for tax
refunds. In Grand County, both the $8,000 first-time homebuyer tax credit and the $6,500 repeat buyer tax credit can be used to cover closing costs and/or can be applied toward a down payment, making it easier than ever to purchase a home.
Many Types Of Property Qualify
Types of homes that qualify for the credits include: single-family homes, duplexes, triplexes, townhomes, condominiums, mobile homes, and even homes under construction (as long as the house is ready to be occupied by June 30, 2010).
You can even purchase a “second home” in Grand County and take advantage of the homebuyer credit, as long as you designate the new home as your primary home, with your other residence becoming your secondary home.
Homeownership Is A Wise Investment
These homebuying tax credits give you extra incentive to buy now, but home purchases at any time, in any market, can be great investments. When you own a home, you’re able to deduct the mortgage interest and property taxes. And, if you make a profit when you sell, you don’t have to pay taxes on the first $250,000 worth of capital gains, as long as the property was your principal residence for at least two years prior to the sale.
Low interest rates, a beautiful place to vacation, retire, or raise a family, and now federal tax credits of up to $8,000 - it’s time to start looking for property in Grand County!
For more information on the homebuyer tax credits, or any other details about real estate in Winter Park, Fraser, Tabernash, Granby, Sol Vista, or Grand Lake, Colorado, please give me a call (970) 531-6841 or e-mail me at freeman.brenda@gmail.com
