Incentives and Credits

Overview and essentials of this tax credit:

What is it?  A refundable tax credit that will apply towards your 2009 Federal Income taxes which will reduce your taxes up to $8000.   If your tax liability (what you owe) is less than the credit, you will get the balance back in a refund because it is a refundable credit. 

Who is this for?: There are a few qualifications for the program.  Most importantly, anyone who has not had a home ownership interest for three years previous to the 2009 date of purchase being considered for the program is considered a first time homebuyer.  Secondly, there are income restrictions.  Individuals with income below $75,000 or couples below $150,000 qualify for the full amount.  Income levels over that amount will diminish the amount qualified for.  Note that this is based on your Adjusted Gross Income (AGI).  Consult your accountant if your income level is higher than this level to determine your exact qualification.  If you don’t have an accountant, ask us and we can help get you in touch with someone who can help.

Where:  Any state in the United States and it must be the house of primary residence for the purchaser.    The Colorado Springs Real Estate Market is especially strong for buyers who would qualify for this tax credit. 

When:  Now through November 30, 2009.  The house must be closed upon NO LATER THAN NOVEMBER 30, 2009.   We are currently seeing 45 days from day of offer to date of closing so keep that in mind when trying to meet this deadline.

How:  How do you take advantage of this program?  Most tax preparation software and 2009 IRS forms (Form 5405) will automatically have this credit built in and ask you about it.  Just hang onto your closing documents so that when it comes time to do your taxes, you will be prepared.  For more information on buying a home, visit our learning center.

RUMOR CONTROL:  You may have heard some of these credits have to be paid back.  The 2008 credit was exactly that; it had to be paid back for any home bought in 2008 and the purchaser took advantage of the credit.  The 2009 credit was specifically modified to be different; it is a credit and not a loan.  There are no repayment obligations.