Through the American Recovery and Reinvestment Act that
recently became law, Congress improved upon an existing incentive for
first-time buyers. The new tax credit, which applies to purchases of a
principal residence made on or after Jan.1, 2009 and before Dec. 1, 2009, was
increased to $8,000. In addition, the
new credit no longer requires repayment – making it a true credit as opposed to
an interest free loan.
“In addition to the many personal benefits and comforts that
come with buying a home, there are also many financial advantages,” said James
M. Weichert, president and founder of Weichert, Realtors, one of the nation’s
largest independently owned real estate companies. “With the addition of the
$8,000 tax credit, there is probably more financial incentive today for first
time homebuyers than at any time in recent memory.”
Weichert, who was one of the first real estate leaders to
call for a tax credit for buyers back in early 2008, expressed his support of
the passing of the new law. “I salute the President and Congress for taking
action and for their ongoing commitment to support the housing market as an
important way to stimulate the economy.”
Homebuyers who never owned a home or haven’t owned a home in
more than three years, may be eligible to claim all or part of the tax credit
based on their income level. Congress
will also allow individuals to claim the credit on their 2008 tax return to
help put money back in to the economy and provide a more immediately stimulus
effect. Individuals who buy a home after April 15 can file an amended tax
return to receive the credit in 2009. As
with any tax law, individuals should check with a tax advisor to discuss any
specifics regarding the use of this provision.
“Everything is lined up in favor of buyers right now. If a
home purchase is in your future plans, it makes good financial sense to buy now
and take advantage of the sizeable tax credit being offered by the government
and today’s affordable prices,” added Weichert.
Weichert has nearly 18,000 sales associates in approximately
500 company-owned and franchised sales offices in key markets throughout the
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