$8000 Buyers Tax Credit As Downpayment?

Okay, you’ve all heard about it.  You’ve read about it.  You’ve probably gotten quite confused, or at least rightfully upset that every Realtor and Lender in town has it wrong….this $8000 Buyers Tax Credit for a downpayment thing.

First, as you all know, it is certainly true that specific States have wrangled out a way to possible let first time homebuyers use the $8000 tax credit as a downpayment. That said, unless you’re in one of those states, and California and about 45 other states certainly are not, then THIS is the message you want to hear.

The whole purpose of the $8000 first time buyers tax credit was to lend some help to folks who might be stretched a little, especially in this economy. Yes, and it’s also supposed to be a boon to the real estate industry, helping them get back on their feet by helping buyers pick up the bargain homes that have flooded the market due to foreclosures, job losses and industry shutdowns.

As of this writing, honest, and not withstanding anything else you’ve wished or read, the intent, from the Federal Government, was never to allow the $8000 Buyers Tax Credit to be used as a downpayment. What it was supposed to do was help buyers by saying to them in effect, “hey, you’ve saved a little money, and home prices are down, so here’s an incentive to use to augment your closing costs and downpayment. We’ll even help you out by making the $8000 available to you this year if you want to amend last year’s tax returns.

I want each and every one of you reading this to know that buying a home now makes just so much sense that it almost makes the idea of allowing the $8000 first time buyers tax credit to be used as the downpayment……but the important word is “almost.”

Here’s specific advice on the $8000 Buyers Tax Credit if you live in California. I’ll let the other states chime in as they will. 

• Home prices are way, way down, so now IS the time to buy.
• Interest rates are way, way down, so now is THE time to buy.
• The $8000 buyers tax credit is real, it’s here, and it’s yours for the taking, so now is the TIME to buy.
• But remember this, home ownership is a big responsiblity, and although admittedly one of the best things you’ll ever do for yourself, unpredictable at least in the short run.  So, if you have the money to put down, and by that I mean if you’ve saved 3.5% of the purchase price, then with the money you’ll get back with the $8000 buyers tax credit you’ll have a cushion for the unexpected, and a cookie jar for enjoying the first year or so of your new home buying experience.

Should you use the $8000 buyers tax credit for a downpayment?  I say that it’s clear from the number of states and banks that are promoting this idea….it’s not a good one.  If you live in a state where they are bridging loans, and you want to live a little closer to the edge, go with it.  But as for me, in this site, in this state, in this reality, in this economy……”Just Say No.”

Jon Cook, CEO, Prudential California Realty

At a recent company meeting in the La Costa office of the Prudential California Realty network, Jon Cook, recently appointed CEO and President at Prudential, spoke about a number of issues that relate to buyers and sellers in today’s unique and somewhat difficult market.

One of the hot topics was the $8000 tax credit that is now available through the government’s revitalization plan for the economy.  As Jon indicated, many first time homebuyers have been cut out of the market over the past number of years because of the high cost of homes.  The “Affordability Index”, as it is called, measures what percentage of the populus can buy a home at any one time based on their income and the median cost of homes.  At one point during the run-up in prices, that number had dropped as low as 7%.  That number now runs close to 45%, a dramatic increase worthy of the attention of any potential first time homebuyer.

Jon Cook, who oversees Prudential’s California Realty group, was General Manager and VP at Prudential, and prior to that President of California Title.

“The $8000 buyers tax credit is a wonderful way for everyone to experience home ownership and take advantage of a once in a lifetime government assisted purchase program.”

NO REPAYMENT REQUIRED

We’ve been asked if the $8000 buyers tax credit has to be repayed.  Well, earlier, back in 2007, the Congress passed a $7500 tax credit that DID have to be repaid over a period of fifteen years.

But the news is all good with the $8000 Buyers Tax Credit for first time homebuyers.  YOU DO NOT HAVE TO REPAY THE $8000, NOT NOW, NOT EVER!!

The $8000 Buyers tax credit is intended to give real buyers, real incentives to buy now, and there’s nothing quite like having the government itself put $8000 TAX FREE cash into your pocket for doing something you probably already want to do.  Again, this is a refundable tax credit, which means that if you owe for example $2500 in taxes, upon filing of your tax return you will completely eliminate the $2500, and in addition, the IRS will send you a check for $5500!!…free and clear. 

Call us today, or contact us at info@8000buyerstaxcredit.com

Death, Taxes, and The Buyers Credit

Death and Taxes.  Feared, loathed, and certainly inescapable, right?

Probably, but let’s take a bite out of the tax man with the Recovery Act’s $8000 Buyers Tax Credit for first time homebuyers. 

Perhaps, like me, you hate what Washington is concocting now, with spending at a rate that dwarfs the economies of all the nations of the world, from the beginning of time!!  And, perhaps like me, you see yourself as wanting to fall back into gentler and easier times,  filled with hope and expectation, with family, friends and neighbors involved in making your life the best it can be.

As we’ve told you, the Recovery Act of 2009 makes an $8000 tax credit available to anyone who is a first time homebuyer, and who meets some very easy criteria.  Once you’ve purchased a home, by December 1, 2009 (NOTE:  It’s December 1, NOT December 31), you have the option of filing a return for 2009 and claiming your $8000 credit, OR you can actually amend your 2008 return if you have already filed it, and the government will assume (for tax purposes) that you purchased the home on December 31, 2008.  If that’s what you want to do, then you can immediately claim and receive your $8000 check back, just as soon as you close escrow on your new home.

Contact us here, or start searching for homes today, and then lets’ talk about why anyone who is thinking about a new home purchase now, should probably stop thinking, and start doing.

Questions about the $8000 buyers tax credit?

Here are some more questions and answers to help you with determining if the $8000 buyers tax credit for new home purchasers is for you.

Are there income restrictions?  Yes, adjusted gross income for individuals can be no greater than $75,000, and for a married couple filing a joint return, $150,000.

What is Adjusted Gross Income?  This number is generally the total of all salaries, wages, interest, dividends, pension and retirement earnings, rental income and other elements.  Your Adjusted Gross Income is usually found on the bottom line of the front page of IRS form 1040.

We earned slightly more than the income restrictions above.  Can we get any tax credit?  Possibly yes, if your income does not exceed $95,000 for an individual, or $170,000 for a married couple, then you may earn a modified tax credit.

As always, if you are a first time homebuyer, you should contact your real estate agent, and also confer with your tax accountant or attorney.

$8000 Tax Credit WILL make you smile

What’s better than the $400 to $800 rebate taxpayers will be getting as part of the Recovery Package?  An $8000 tax credit for first time homebuyers in 2009.

Here’s an example of how it works. 

If you owe taxes, let’s say $10,000, then if you’ve purchased a home between January 1, 2009 and December 1, 2009 you can deduct $8000 directly from your tax bill, and owe $2000.  If you owe $4000 in taxes, then you will pay ZERO, and the government will send you a check for $4000.  And even better yet, you may decide whether you want to apply the credit in 2008 or 2009, even if you’ve already filed your 2008 tax return.  (Remember to see you tax accountant, CPA or attorney to verify the ins and outs of this plan).

So, if you’d like to put a smile on your face, and you’re in the market for a home, then this year is the time to buy.  We’ll be doing seminars, and teaching first time homebuyers how to do this in Oceanside and other San Diego communities.   Come see us at the North County Business Showcase at the Del Mar Fairgrounds on March 10, or email us for information.  If you want to start looking for homes, then check out our easy to use Home Search at www.DonReedy.net

Homebuyers Tax Credit - Wall Street to Main Street

Just watched “Meet the Press”, and all the talking heads, talking about spending, investing, saving, creating and helping.

The $8000 buyers tax credit for first time homebuyers is help on the way for you and your loved ones!  No, you didn’t cause this economic slowdown, turndown, or downdown, whatever you feel like calling it.  And no, you didn’t ever think you’d be happy about a “hand-out”, did you?

But, the Recovery Plan and $8000 tax credit is a part of the stimulus and recovery that meets you right where it helps the most.  This tax credit will put $8000 cash into your hands.  That’s right.  This is NOT a tax deduction, but is a tax CREDIT.  A credit means that the government will reach into the pockets of those on Wall Street, and send that money first class delivery to you on Main Street.

Please see us at the North County Business Showcase on March 10, 2009.  We’re in booth 69, and we would love to teach you more about how this benefit can be yours in 2009.

Take a look at the table below.  This is not pie in the sky.  This is how investing now, particularly in Oceanside real estate, can absolutely put you right side up with your investment strategy.

These home prices are here, are real, and both the rental income and mortgage costs are accurate as well.

Remember, if you have money in an account that has lost money, and are wondering whether or not to let that “asset” lie around in hopes of getting a return on it, perhaps now would be the time to talk to your tax accountant,  and then come talk with us about investing in real estate right here in Oceanside, California.

$8000 Tax Credit Key to First Time Home Ownership

What it is:  Part of the Financial Stimulus Package for 2009

Who it’s for:  Homebuyers who have not lived in a home they owned at any time during the past three (3) years.

What it does:  Provides an $8000 tax credit for any purchaser meeting the above criteria at any time from January 1, 2009 to December 1, 2009.

What’s a “Tax Credit”?:  This is real cash!  At the end of the year, when you file your taxes, you will get credit for $8000.  If you owe $4000 in taxes, for instance, those taxes will be wiped out.  You will owe nothing!  But even better is that you will then receive a check for an additional $4000!!  All of this for merely buying a home during the year 2009.

Contact us at:  760-802-9713, or email us at info@8000buyerstaxcredit.com