The long awaited Tax Credit for 1st Time Home Buyers

The 2009 Economic Stimulus Bill, signed into law on February 17th, includes a tax
credit for first time homebuyers. All qualifying homebuyers are entitled to take
advantage of this one-time tax credit.

Up to $8,000 tax credit. The tax credit is equal to the lesser of $8,000 or
10% of the purchase price of the home for first time homebuyers who
purchase a home after January 1, 2009 and before December 1, 2009.

This replaces a previous $7,500 tax credit that was scheduled to expire on
July 1, 2009.

Income requirements. Single taxpayers with incomes up to $75,000
and married couples with incomes up to $150,000 can qualify for the
full tax credit.

First time buyers. Individuals who have not owned a home in the past
three years are considered first time buyers.

Residency requirements. For homes purchased after January 1, 2009, this
tax credit does not need to be repaid if the home is occupied as the buyer’s
personal residence for the first three years from the date of purchase.
Prior to this new legislation the former $7,500 tax credit was required to be
recaptured over a period of 15 years or when the home was sold.

Tax returns. A provision permits taxpayers to claim the tax credit
for homes purchased during 2009 on their 2008 tax return.

It's all in the timing

Not so long ago we were talking about 'flipping' houses and making money!!
Guess what!! In this age of foreclosures and bank-owned homes...we are talking about 'flipping' once again.

Only this time, it's a little different. The prices are good. The properties require a lot of work in some cases, and the return will not be Huge amounts you might expect - oh yes, and it will take some time to sell. But the gains are there. The temptation to dabble in the market is strong especially when there is such an abundance of properties out there from which to choose!