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First Time Home Buyer Tip

If you have been renting, especially an apartment, you likely are short a key element to home ownership: window treatments. When I was growing up we just said, “curtains”. Of course that included drapes, shears, rods, tie backs … the list.

The Complete Photo Guide to Window Treatments: DIY Draperies, Curtains, Valances, Swags, and Shades

I know how people can dream about windows – believe me. We have over 60 of them and my wife planned what would cover them for a year while we were building our home.

Here is a checkpoint for you if you are a first time home buyer. If you go to WalMart and buy shears, drapes and rods you will spend a minimum of $50 per window. Count the window openings in your home and multiply by $50 to get a very inexpensive base for the cost of dressing the windows in your new home. If you think you can make your own and save money – good luck!

The First Time Home Buyer’s Tax Credit ends with homes which close on November 30, 2009. Since you are a first time buyer let me give you the hint that maybe you should go into the business of making window dressings and selling to WalMart!

I am available to answer any First Time Home Buyer questions at any time at 678-946-0100

Section 1006 in a Nutshell (First Time Homebuyer's Tax Credit)

Information on the previous First Time Homebuyer’s Tax Credit from the IRS.

This information is contained in the text of the second half of HR1-2009-111th Congress

The tax credit, in the form of a 15 year, interest free loan, has been raised from $7,500 to $8,000. The required recapture period has been changed from a prorated period of the life of the loan to a period ending 3 years following the date of purchase for homes purchased in 2009 only [this needs clarification - it appears if the home is sold during the first 36 months there is a full recapture but after 3 full years there is no recapture. I question this interpretation because it makes no sense]. The time period is extended to cover home purchases made prior to December 1, 2009 (formerly ended July 1, 2009).

SEC. 1006. EXTENSION OF AND INCREASE IN FffiST?TIME HOMEBUYER CREDIT; WAIVER OF REQUIREMENT TO REPAY.
(a) EXTENSION.-
(1) IN GENERAL.-Section 36(h) is amended by striking”July 1, 2009″ and inserting “December 1, 22 2009″.
(2) CONFORMING AMENDMENT.-Section 36(g)
is amended by striking “July 1, 2009″ and inserting “December 1, 2009″.
(b) INCREASE.-
(1) IN GENERAL.-Section 36(b) is amended by striking “$7,500″ each place it appears and inserting “$8,000″.
(2) CONFORMING A1VIENDMENT.-Section 36(b) (1) (B) is amended by striking “$3,750″ and inserting “$4,000″.
WAIVER OF RECAPTURE.-
(1) IN GENERAL.-Paragraph (4) of section 36(f) is amended by adding at the end the following new subparagraph:
“(D) WAIVER OF RECAPTURE FOR PURCHASES IN 2009.-In the case of any credit allowed with respect to the purchase of a principal residence after December 31, 2008, and before December 1, 2009-
“(i) paragraph (1) shall not apply, and
“(ii) paragraph (2) shall apply only if the disposition or cessation described in paragraph (2) with respect to such residence occurs during the 36-month period beginning on the date of the purchase of such residence by the taxpayer.”.
(2) CONFORMING AIVIENDMENT.-Subsection (g) of section 36 is amended by striking “subsection (c)” and inserting “subsections (c) and (f) (4)(D)”.
(d) COORDINATION WITH FIRST-TIME HOMEBUYER CREDIT FOR DISTRICT OF COLUMBIA.-
(1) IN GENERAL.-Subsection (e) of section 1400C is amended by adding at the end the following new paragraph:
“(4) COORDINATION WITH NATIONAL FIRST TIME HOMEBUYERS CREDIT.-No credit shall be allowed under this section to any taxpayer with respect to the purchase of a residence after December 31, 2008, and before December 1, 2009, if a credit under section 36 is allowable to such taxpayer (or the taxpayer’s spouse) with respect to such purchase.”.
(2) CONFORMING AlVIENDMENT.-Section 36(d) is amended by striking paragraph (1).
(e) REMOVAL OF PROHIBITION ON FINANCING BY MORTGAGE REVENUE BONDS.-Section 36(d), as amended by subsection (c)(2), is amended by striking paragraph (2) and by redesignating paragraphs (3) and (4) as paragraphs (1) and (2), respectively.
(f) EFFEC’l'IVE DATE.-The amendments made by this section shall apply to residences purchased after December 31, 2008.

Who qualifies for the $7500 first time home buyers tax credit?

The first time home buyers tax credit is available to anyone who purchases a new home before July 1, 2009 and who has not owned a home during the previous 36 months.

It does not matter how the home is paid for or purchased but there are income limitations to qualify for the first time home buyers tax credit.

“The credit is phased out based on your modified adjusted gross income (MAGI). MAGI is your adjusted gross income plus various amounts excluded from income?for example, certain foreign income. For a married couple filing a joint return, the phase-out range is $150,000 to $170,000. For other taxpayers, the phase-out range is $75,000 to $95,000. This means the full credit is available for married couples filing a joint return whose MAGI is $150,000 or less and for other taxpayers whose MAGI is $75,000 or less.” – Directly from the IRS

Yes, the first time home buyers tax credit is available on all homes in Georgia and Florida. The first time home buyers tax credit is not available on investment properties and the home buyer may not own another home anywhere in the United States for any purpose. The first time home buyers tax credit is intended for primary homes only.