The $8,000 Tax Credit For Homebuyers

The $787 billion economic recovery plan has passed both houses of Congress and is scheduled to be signed by the president tomorrow in Denver, Colorado. In that bill is an $8000 tax credit available for first-time homebuyers who purchased any time after January 1, 2009 and before December 1, 2009. Please note that this provision is retroactive. Also note that a first time home buyer is a person (or their spouse) who has not having owned a principal residence in the last three years. Unlike the previous $7500 tax credit which had to be repaid, this tax credit does not require repayment. It appears that the tax credit could be used on either the 2008 or 2009 income tax. If a person's tax liability is less than the $8000, then the IRS will refund the unused credit to the buyer. The previous income limitations and I discussed in my blog for the $7500 credit are the same for the $8000 tax credit. There will certainly be additional details and I will get those out to you as soon as possible.

While this tax credit may not be appropriate for you, perhaps your children, nieces and nephews, or your grandchildren could benefit from this economic stimulus. We do have some local financial assistance groups that could provide aid with down payment monies while waiting for the tax credit to be refunded.

All of us who've been around any period of time, are certainly aware of how difficult it can be to buy into the Durango real estate market as a first time home buyer. Higher home prices mean larger down payments and the somewhat lower wage scale makes it tough. Compared to the big cities of Denver, Houston, Phoenix and Dallas our prices are quite high. But we do enjoy lower property taxes caused by our oil and gas industry and I am always quick to say that the amount of the budget for vacations can be less, because where we live is just like a vacation. People live here for the lifestyle and the slower pace that this type of town provides.

Please feel free to give me a call to discuss in greater detail how this tax credit could be put to use. 970-375-7007.