by David Ellis
on Monday, March 16th, 2009 at 11:51am.
It is a great time to buy a home in St George, Utah...especially for first-time home buyers. With the passing of the "American Recovery and Reinvestment Act of 2009", first-time home buyers are now eligible for a $8,000 tax credit. How does this tax credit work? Here are some details:
Timeframe: applies to all qualified purchases on or before January 1, 2009 and before December 1, 2009.
Amount: credit applied is 10% of the purchase price, up to $8,000.
IncomeLimits: full amount of credit available for individuals with adjusted gross income of no more than $75,000 or for a joint return, $150,000.
First-time Homebuyers: the credit applies only to first-time home buyers...or in other words, purchasers who have not owned a primary residence for three years prior to purchasing.
Repayment: the credit DOES NOT need to be repaid. However, if the home is sold within three years of purchase, the entire credit will be recaptured upon the sale.
Another measure that may have an impact on the St George housing market is the increase of FHA lending limits to $372,500. There are also other tax credits available for qualified purchases of new furnaces, windows, and insulation.
Will these factors above help stimulate a market recovery? I have no idea...
Please note: I am not a tax professional. For information regarding this tax credit or any other tax credit, please contact your CPA or tax preparer.