Tax Credit - Deadline is Now

While buyers should never rush into the decision to buy a home, if the tax credit is a motivating factor, there is a deadline. Unless legislation extends the deal, you’ll have to close escrow by Nov. 30 to take advantage of the maximum $8,000 tax credit available for first time home buyers.

However, given the 30 to 45 days - or longer - it takes to close escrow - especially on some distressed properties - you can’t wait until Nov. 30 to buy a home. In fact, if you’re not under contract in the next week or so, chances are, you will miss the deadline.

The federal tax credit for 2009 is only for first-time home buyers - people who’ve had no ownership interest in a home in the three years prior to the purchase. Single and head of household tax payers can earn no more than $75,000. There’s a $150,000 ceiling for married couples filing a joint return.

A tax credit is a big deal because, unlike a tax deduction which reduces your taxable income, a tax credit reduces the taxes you owe, dollar-for-dollar.

This home buyer tax credit can also net you a rebate if the credit is more than the taxes you owe. The rebate is the difference. If you owe no taxes, your rebate can be a maximum $8,000.

So far, 1.4 million people have used the credit, including 160,000 in California, the Internal Revenue Service said Friday.

For an Orlando real estate tax credit home purchase, contact us here at the Orlando Real Estate Pros ASAP: 407-290-3408.

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