In an effort to pump our local economy and help area renters become homeowners, Windermere Real Estate/Northeast, Inc. and Cobalt Mortgage have partnered with local community businesses to help put $1 million back into Eastside communities by helping new home buyers receive the $8,000 Government Tax Credit.
This goal will be accomplished by providing education and assistance concerning the purchase and closing of a home to at least 125 first-time homebuyers by Nov. 30 of this year. A free educational forum intended to assist individuals and families in the home-buying process will be held at 10 a.m. Saturday, Sept. 26 at Lake Washington Technical College, 11605 132nd Ave. N.E., Kirkland. Learn why buying today will put $8,000 in your pocket and why there has never been a better time to buy a home. The workshop will also cover why renting kills your net worth, how buying a home will increase your net worth and how to be credit ready today to buy tomorrow. To register, call 866-632-0553 or e-mail info@425homebuyer.com.
In February, President Obama signed into law the American Recovery and Reinvestment Act of 2009. One provision of this legislation is the Homebuyer Tax Credit, a reimbursement of up to $8,000 available to first-time homebuyers. While this credit has been embraced by many Americans since its passage, a major stumbling block to its full utilization persists.
Lack of Homebuyer Awareness
According to a survey released by the National Association of Realtors, nearly 50 percent of all homebuyers were unaware that a tax credit of up to $8,000 currently exists for qualifying parties. Of those Americans actively shopping for a home, fewer than one in five knew about the credit and planned to use it when buying a home.
Another area of misunderstanding concerning this source of financial assistance is that the credit can be applied to homebuyers’ 2008 federal income taxes. This puts the credit back into their hands this year’ assisting people today, which could prompt many to buy while the credit is available. The tax credit is also refundable, meaning that buyers with little or no federal income tax to offset are eligible to receive a check for the difference between their tax offset and the credit amount calculated for their new property.
Tax Credit Calculation and Deadline
The tax credit for a given property is based on 10 percent of the property’s sale price, with a maximum credit of $8,000. For example, a buyer who purchases a home for $100,000 is eligible for a tax credit of $8,000. A home purchased for $60,000 qualifies for a tax credit of $6,000. The final day to take advantage of the credit is November 30, 2009; all qualifying transactions must close on or before that date.
Qualifying Criteria for Tax Credit
Individuals who have never owned a home as well as those who haven’t owned one during the past three years are eligible for this year’s Homebuyer Tax Credit. The modified adjusted gross income for a member of either of these groups is limited to $75,000 for single taxpayers and $150,000 per married couple. Individuals whose earnings exceed these amounts may be eligible for a partial credit and should contact their accountants for additional information. Program enhancements continue to be released; interested parties should email info@425homebuyer.com for information.
Community partners include the Kirkland Reporter, Brooks G. Tish Insurance Agency, Inc., The Seattle Times, R.D. Mushen & Associates, All City Fence Residential and Commercial Fences, Professional Direction Real Estate School, Jeff Sand Agency – State Farm Insurance, CamWest Homes, 425realty.com, Windermere, Kirkland-Northeast, Cobalt Mortgage, Inc., WIN Home Inspection, Zimmerman & Associates, Lakeside Collision Center, Cobalt Escrow, Hebert Research Inc., Bayley Financial, biztalkvideolab.com, Lasting Impression Remodeling, Inc., Vista Forbes Homes and Lee Johnson Chevrolet.
