We could sit paralyzed watching the bleak news headlines scroll across the television screen. Or we can be proactive in this current economic climate. It takes more than luck or a gamble to maximize our resources and stay ahead of the tumult. More and more, we are all looking for ways to use our cash wisely while trying to add to the personal and monetary values of our home.
In this series of articles, we hope to address some of these topics by informing you of potential ways to save in this housing market, possible credits you may able to take advantage of, and budget smart ways to transform your space into a home. We will also include a major tip and statistics with each blog (see below). Please feel free to comment and let us know what you would like to hear more about.
First time Home Buyers – You are Entitled to a Tax Credit up to $8,000.
Are you a First time Home Buyer? Being a First time Home Buyer can be exciting and scary all at the same time and sometimes even overwhelming. For many, this is The Big Investment. If you are a First time Home Buyer, there is a tax credit that you may be eligible to receive. If you purchased a home between January 1, 2009 and December 1, 2009, you could be eligible for a tax credit up to $8,000 authorized by the American Recovery and Reinvestment Act of 2009. You can claim the credit on either your 2008 or 2009 tax return. Even if you have owned a home in the past, you may still be eligible for this credit. A first time home buyer is defined as a buyer who has not owned a principal residence during the three-year period prior to the purchase. April 15 is your income tax return deadline.
You do not
have to repay this tax credit. The fact that it does not have to be
repaid is one of the main differences from the tax credit that Congress
enacted in July 2008. However, you do have to use the residence as your
principal residence for at least three years.
We would be mighty pleased if you come back to visit our series, Budget Smart, as we continue to bring you more information on ways that you can save through credits, rebates, repairs and smart shopping.
Tip of the Entry
Before you purchase on the web, Google the website name for coupons. It never hurts to ask and take advantage of referral programs. Websites usually offer coupons indirectly to customers through outside referral websites and programs.
Statistics:
The National Association of Realtors reported March 24th, 2009, that Existing Home Sales rose 5.1%. Of that number, 2.6% were First time Home-buyers.
Very helpful links & resources
For complete information on the First time Home Buyer Tax Credit, please visit the IRS website orFederal Housing Tax Credit Website. To view the 2008-2009 Tax Calendar, click here to go to the MSN.com’s Money Central.
About the Author: Kristina is the brilliant and hard-working marketing and business analyst for 1STOPlighting. She is also a devoted mother to her young son.
About the Series Editor: Akemi Hong is Kristina's young protege. She was the editor-in-chief and contributor to The Tramp, John Muir College's environmental newsletter.