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Archive for April, 2009

Attention Steamboat First Time Home Buyers

Part of the $787 billion stimulus bill that President Barack Obama signed into law in February includes  a measure designed to help revive the real estate market. Here are six things you need to know about the freshly-enacted $8,000 first-time  home buyer tax credit.

1. Eight grand, new buyers: The tax credit included in the economic stimulus legislation  is equivalent to 10 percent of the purchase price of the home–capped at $8,000–and applies only to first-time home buyers and principal residences. 

2. First time buyers defined: For the purpose of this legislation, a “first-time home buyer” is someone who hasn’t owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you’ve owned a vacation home–but not a principal residence–within the past three years, you would still qualify for the credit.

3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won’t be able to take advantage of it.

4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that’s $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.

5. Refundable: Because the tax credit is “refundable,” qualified buyers can take advantage of it even if they don’t have much tax liability.

6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

With this tax credit, low interest rates and price adjustments on properties in Steamboat, NOW is the time to buy!  Allow me to guide you though your Steamboat property purchase.