First-time homebuyers have until the end of November ‘09 to close on a home to take advantage of the $8,000 tax credit. If you are a first-time buyer in the Vail Valley, Eagle or Gypsum areas, or anywhere in Eagle County, you need to get off the dime and start looking. There are lots of great homes (100ish) currently for sale under $300K. As of today there are approx 15 homes for sale under $200K!!
How do you qualifiy for the $8,000 tax credit? In general terms, if you are a first-time home buyer (have never owned a principle residence or have not owned a principle residence for at least three years) you qualify. If you are single and earn less than $75,000 or if your married and earn less than $150K you qualify. What’s nice about this tax credit (The American Recovery and Reinvestment Act of 2009) is you do not have to pay the money back!
Another very nice feature is this is not a tax deduction but rather a tax credit. A tax credit is a dollar for dollar reduction in the taxes you owe the Federal government. For instance, let’s say you owe the Federal government $3,000 in taxes for 2009. With the $8,000 tax credit the government will send you a refund check for $5,000! ($8,000 tax credit, minus $3,000 for taxes owed, leaves a balance of $5,000 refunded to you)
If you plan on living in Happy Valley for any length of time, have been thinking about how you should buy a home, and don’t pull the trigger in the next few months, you will not only have missed the tax credit, you will have missed the best buying opportunity you are going to see for sometime in Eagle County. So, get going. Don’t know how to get going or want help to get going, call me.
[The info provided above should be verified by your accountant or financial advisor.]