Most of the bailout stimuli put into law by both President Bush and President Obama will never really trickle down to Joe America. But the “First Time” buyer credit is one that can actually reach the lower rungs of the trickle.
There are several aspects of this policy that make it appealing:
-it is a tax credit, not a tax writeoff, it is as if you have actually paid in $8,000 towards your tax bill
-it can be used retroactively by doing an amendment to your previous years tax return
-the definition of “first time buyer” is that you have not owned a home within the past 3 years
-This credit is only good on houses closed before December 1, 2009. This is not likely to be extended in this current form.
-The policy in 2008 was not nearly as good, the rules for 2009 are very good and favorable for most buyers.
These incentives along with Lower Interest rates, lower home prices and lower costs associated in the buying process make it an ideal time to jump into the market. These incentives apply to any area, from Sherman Oaks, CA, to the cheapest townhome in Van Nuys, foreclosures, regular home sales or new construction. Any house for sale will work. Just call your local real estate agent for help searching the MLS.
*these are all generic rules of the road and are no to be considered accounting or legal advice. I insist that you consult with your accountant or lawyer regarding these issues
About Guy Violas
