Ready, Set, GO!
athome withMarlo
Tax incentive for first-time homebuyers AND current homeowners
By Marlo Allen Marlo Allen is a licensed Realtor residing in Nelson County
Don’t delay! This is an opportune time to buy a home. Home prices have dropped, interest rates are low, and the federal government has extended the tax incentive for first-time homebuyers. In addition, the tax credit has been expanded to include current homeowners. Even if you already own a home, you may qualify for a home purchase tax credit. Read more to see how the tax credit has been modified and to see if you qualify to save money by making a “timely” home purchase. Home Purchase Period: The qualifying house hunter has until April 30, 2010 to find a home AND have it under contract. This means that the home must be selected and the contract ratified by this date. The settlement or closing on the home must occur on or before June 30, 2010. Amount of Incentive: The credit is equal to 10% of the cost of the home, up to a maximum credit of
$8,000 for first time buyers and $6,500 for repeat buyers. Homes that cost more than $800,000 are ineligible. Credit Logistics: This is a tax credit, which is even better than a tax deduction because it is subtracted directly from your tax liability. If the credit is more than your total tax liability for the year, you will receive a refund check for the balance. A married buyer filing separately is only eligible for up to a $4,000 credit as a first time home buyer and $3,250 as a repeat home buyer. Eligible Properties: Any single family residence (including a detached, modular, or manufactured home, condo, co-op, townhouse, etc…) that will be used as a principal residence. First-time Homebuyer Qualifications: A first time homebuyer can take advantage of the full $8,000 credit. This is an individual who has not owned a “primary” home for the
And visions of contracts danced in their heads…
Get results! Call Marlo for all of your real estate needs. Marlo G. Allen
434.996.3525 Email: Marlo@InsistOnThatGirl.com Web: InsistOnThatGirl.com Market Data: HomeValueMarketReport.com
Insist on that girl!
past three years. For married joint filers, both must meet the first-time buyer criteria to take the credit on a joint return. Opportunity worth noting: As long as you do not own the place that has been your primary residence for the past three years, you may still qualify. In essence, you could own other real estate and still qualify! Current Homeowner (or Repeat Buyer) Qualifications: Existing homeowners who have lived in their current home for five consecutive years out of the past eight years are eligible for up to a $6,500 tax credit when they purchase another primary residence. Opportunity worth noting: Based on current guidelines, the existing homeowner does NOT have to sell the current house to qualify for this tax credit. However, the home purchased does have to become the new primary residence. Also, there is no requirement that the existing homeowner has to buy “up”, so the
homebuyer could downsize. Income Guidelines: There are income limitations. Individuals with an adjusted gross income up to $125,000 (or $225,000 if filing jointly) are eligible for the full tax credit. The credit is phased down for those earning more. It is not available for those with incomes above $145,000 (or $245,000 if filing jointly). This incentive is good news for buyers and sellers. While the buyer gets the tax credit, a “motivated” seller may be a lot more likely to attract a “motivated” buyer. To better understanding how this tax credit may apply to you, please consult your lender, accountant, or other financial professional.
Marlo Allen, frequently referred to as “That Girl,” calls Nelson County home. In fact, she grew up in Nelson and besides being a Realtor, is a family business partner at Hill Top Berry Farm & Winery in Nellysford. Marlo provides real estate services in Nelson and surrounding counties.
Phenomenally Priced View Lot!
This premier Stoney Creek lot is so easy to view as it has its own private walking trail winding through the entire parcel of land. Hike the trail and see for yourself what an incredible mountain view this lot has. As an extra added bonus, at the base of the trail the lot opens up to the golf course and a meandering stream. This is a rare find to get a centrally located lot with access to public water and sewer and with mountain, golf, and stream views! It also has easy access to the resort walking trails to the Clubhouse and to Lake Monocan. Priced below tax assessment!
415 Stoney Creek East Lot #18; 1.36 Acres; $118,000
Get real-time market data for Wintergreen, Nelson, & Charlottesville Area at HomeValueMarketReport.com
DECEMBER 2009 NELSON COUNTY LIFE 23