They Finally Came to an Agreement
Congress reached it’s agreement on a $789 billion stimulus package. The President expected to sign it into law later this week. The clock may be ticking for this year’s home buyers and homeowners.
The massive package contains two benefits related to housing.
For First Time Homebuyers
The first provision is fairly well-known. It gives first-time home buyers an $8,000 tax credit provided they purchase a home between January 1, 2009 and August 31, 2009.
This is a true tax credit.
The $8,000 credit requires home buyers to hold property for at least 3 years. If the home is sold in fewer than 3 years, the tax credit must be repaid to the government. Bummer.
It’s also worth noting that the date range applies closings and not sales agreements.
Closings must occur within these 8 months to be eligible.
The Government Goes Green
A second noteworthy feature in the package is that the stimulus package gives existing homeowners incentive to make their homes more “green”. With available tax credits for energy-efficient windows and doors, furnaces and insulation, homeowners can claim larger tax deductions based on home improvement, up to $1,500.
Remember though, just because the government provides housing-related tax benefits doesn’t mean you should just act on them blindly. Tax liability is a highly individual item and you may be ineligible for any number of reasons. Be sure to discuss your plans with a qualified accountant before taking action.
Related Posts
Why The Homeowner Affordability and Stability Plan Doesn’t Fix The Problem
First Time Homebuyer Tax Credit is About to Expire
First Time Home Buyer Tax Credit is Extended till April 2010
The Spring Buying Season is Well Underway
A Surge in New Home Sales is Expected Over the Next 6 Months
The Buyer’s Market is Ending as Home Supplies Continue to Fall
