Steamboat Renters–Get $8000 Home Buyer Tax Credit
Are you renting in Steamboat and plan to live here for more than three years? You can get a $8000 Tax Credit for First Time Buyers when you buy your first home. (First time buyers are defined as anyone who hasn’t owned Steamboat real estate in the last three years.)
If you are a Steamboat Springs renter who would like to take advantage of the low interest rates and buy your first home, now is the time to start looking.
The Stimulus Package includes a $8000 tax credit for buyers purchasing a home before November 30, 2009. It does NOT need to be paid back if you own the home longer than 3 years.
Here are the changes (the same income caps and 10% of purchase price max apply):
- $8,000 tax credit does not have to be repaid unless the home is sold within 3 years.
- If the home is sold within 3 years, the full $8,000 has to be paid back that tax year.
- Steamboat buyers are eligible with home purchases made between Jan 1, 2009 and Nov 30, 2009. (The old plan ended June 30, 2009.)
There are some great properties right now where you can get a great price, low interest rates, and the free $8,000 tax credit. FNMAE loan limits are high in Routt County and only require 3.5% down. You may be able to own for less than you rent. Please call Eliese at (970) 819-6372 for more information or contact me.
FIRST-TIME HOMEBUYER TAX CREDIT (For Steamboat Buyers who haven’t owned property in 3 years.)
As Modified in the American Recovery and Reinvestment Act
Major Modifications in Bold
February 2009
| FEATURE | CREDIT AS CREATED JULY 2008
APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008 |
REVISED CREDIT –
EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009 |
| Amount of Credit | Lesser of 10 percent of cost of home or $7500 | Maximum credit amount increased to $8000 |
| Eligible Property | Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence. | No change
All principal residences eligible. |
| Refundable | Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser. | No change
Purchasers will continue to receive refund for unused amount when tax return is filed. |
| Income Limit | Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000). | No change
Same income limits continue to apply. |
| First-time Homebuyer Only | Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase. | No change
Still available for first-time purchasers only. Three-year rule continues to apply. |
| Revenue Bond Financing | No credit allowed if home financed with state/local bond funding. | Purchasers who utilize revenue bond financing can use credit. |
| Repayment | Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing. | No repayment for purchases on or after January 1, 2009 and before December 1, 2009 |
| Recapture | If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale. | If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009. |
| Termination | July 1, 2009
(But note program changes for 2009) |
December 1, 2009 |
|
Effective Date |
Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year. | All revisions are effective as of January 1, 2009 |
Finally, call your tax advisor for details on your particular situation. I am not a CPA or an attorney, so make sure you get the right advice when you buy your first Steamboat home.
Posted: February 17th, 2009 under Real Estate.
Comments: 3
Comments
Pingback from steamboat springs first time home buyers can get $8000 tax credit | Steamboat Real Estate Home Search and Blog
Time: March 28, 2009, 2:39 pm
[...] Have you been renting in Steamboat because you’ve been priced out of the market? Right now, half the homes sold across the country are to first time buyers. [...]
Comment from Brandon
Time: May 18, 2009, 3:53 am
HUD and FHA seem to be taking another big step in this area. They recently announced that the tax credit can be used as a down payment on FHA loans, under certain conditions. I think this is going to get a lot of would-be home buyers off the fence and into the market. Great info on the tax credit you’ve provided.
Comment from Eliese Pivarnik
Time: May 18, 2009, 9:41 am
Thanks for the comments, Brandon. I wrote a post about the tax credit being used as a downpayment a few days ago after NAR, HUD, and others mentioned it. Now it doesn’t seem to be a sure thing. Let’s hope they find some way to work with the IRS to make the bridge loan work.
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