Buying Ft. Smith Real Estate, Fort Smith Real Estate
$8,000 What’s in Your Wallet? Fort Smith Real Estate
May 14, 2009 by Ray Nellum · Leave a Comment
First Time Home Buyers in the Fort Smith Real Estate Market have a great opportunity to cash in with the New Tax Credit! Could you use an additional $8,000??? So many buyers are on the fence and off the fence. While you are trying to decide, you could be missing out on an opportunity of a lifetime. Fort Smith Homes are at a great value right now for buyers! Interest rates are absolutely amazing!
So if you are a buyer in market to buy a home is the Fort Smith Area, take a look at the tax credit breakdown. I know, you may have read the information and don’t quite understand it all. Below is a simple and easy breakdown of the Tax Credit.
For additional information please feel free to call me at 479-414-1894.
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FEATURE |
CREDIT AS CREATED JULY 2008 |
REVISED CREDIT – |
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APPLIES TO All QUALIFIED |
EFFECTIVE FOR PURCHASES ON |
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PURCHASES ON OR AFTER April 9, |
OR AFTER JANUARY 1, 2009 AND |
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2008 |
BEFORE DECEMBER 1, 2009 |
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Amount of |
lesser of 10 percent of cost of home or |
Maximum credit amount |
|
Credit |
$7500 |
increased to $8000 |
|
Eligible |
Any single family residence (including |
No change |
|
Property |
condos, co-ops, townhouses) that will |
All principal residences eligible. |
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be used as a principal residence. |
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Refundable |
Yes. Reduces (or can eliminate) |
No change |
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|
income tax liability for the year of |
Purchasers will continue to |
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purchase. Any unused amount of tax |
receive refund for unused amount |
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credit refunded to purchaser. |
when tax return is filed. |
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Income limit |
Yes. Full amount of credit available for |
No change |
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individuals with adjusted gross income |
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of no more than $75,000 ($150,000 on |
Same income limits continue to |
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a joint return). Phases out above |
apply. |
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those caps ($95,000 and $170,000). |
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First-time |
Yes. Purchaser (and purchaser’s |
No change |
|
Homebuyer |
spouse) may not have owned a |
Still available for first-time |
|
Only |
principal residence in 3 years previous |
purchasers only. Three-year rule |
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|
to purchase. |
continues to apply. |
|
Revenue Bond |
No credit allowed if home financed |
Purchasers who utilize revenue |
|
Financing |
with state/local bond funding. |
bond financing can use credit. |
|
Repayment |
Yes. Portion (6.67% of credit or $500) |
No repayment for purchases on |
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|
to be repaid each year for 15 years, |
or after January 1, 2009 and |
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|
starting with 2010 tax filing. |
before December 1, 2009 |
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Recapture |
If home sold before 15-year repayment |
If home is sold within three years |
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period ends, then outstanding balance |
of purchase, entire amount of |
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|
of repayment amount recaptured on |
credit is recaptured on sale. |
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sale. |
Applies only to homes purchased |
|
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in 2009. |
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Termination |
July 1, 2009 |
December 1, 2009 |
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(But note program changes for 2009) |
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Purchases on or after April 9, 2008 and |
All revisions are effective as of |
|
Effective Date |
before January 1, 2009. Repayment to |
January 1, 2009 |
|
|
begin for 2010 tax year. |
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