Lakeland Real Estate Update: First Time Home Buyer Tax Credit Stops Dec. 1st

That’s right!  First time home buyers looking to purchase Lakeland Real Estate should be aware that the government’s First-Time Home Buyer Tax Credit expires December 1, 2009.

If you’re on the fence about buying your first Lakeland home, and you are planning to use this program, consider yourself officially “on the clock.”

Call Petra  - Lakeland Real Estate - 863-619-6918

Look at it this way.  We can safely anticipate a 60-day window between signing your home purchase sales contract and closing on your Lakeland home.  This said, we have only 77 days left to find a home and go under contract for it.

First Time Home Buyer Tax Credit Basics

The First-Time Home Buyer Tax Credit refunds as much as $8,000 to you at Tax Time.  There are a few basic stipulations, listed as follows:

  • You must not have owned a primary residence in the past 36 months
  • Your Lakeland home may not be purchased from a family member
  • Your adjusted gross income (AGI) must be below $95,000 for single tax filers and $170,000 for joint tax filers

The tax credit itself is limited to $8,000 or 10% of the purchase price, whichever is less.  You can receive portions of this credit on a sliding scale basis, depending on your income.  But the limitation figures above apply to many if not most Lakeland real estate first time home buyers.

And remember this: The First Time Home Buyer Tax Credit represents a true tax credit — not a deduction or a loan you have to repay.  This means that if you owe Uncle Sam $8,000 come next tax season, and you claim the $8,000 first time home buyer tax credit, you’ll owe the IRS nothing on April 15, 2010.  And, that’s a good thing any way you cut it!

Note: You can find a complete list of qualifying criteria on the IRS website.

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