Last Chance for the Tax Credit?

In 2008, Congress enacted a $7500 tax credit designed to be an incentive for first-time home-buyers to purchase a home. For 2009, Congress has increased the credit to $8,000 and made several additional improvements. The revised tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009. Though there are several efforts pending in Congress to extend the tax credit, if you are considering purchasing now would be the time in case these efforts are not successful.

Below you will find info that will help you determine your eligibility and how the tax credit may help you.

What is the home-buyer tax incentive?

The credit is $8,000 and no repayment required. Any home that is purchased for $80,000 or more qualifies for the full $8,000 amount. If the house costs less than $80,000, the credit will be 10% of the cost.

Who is eligible?

Only first-time home-buyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the purchase.

How does a tax credit work?

Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual's income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return, a person has a total tax liability of $9500, an $8,000 credit would wife out all but $1500 of the tax due.

What happens if the purchaser is eligible for an $8,000 credit but his/her income tax liability is only $6,000?

This tax credit is what is called a "refundable" credit. Thus, if the eligible purchaser's total tax liability was $6,000, the IRS would send the purchaser a check for $2,000. The refundable amount is the difference between the $8,000 credit amount and the amount of tax liability.

Is there an income restriction?

Yes. Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than $75,000. Married copules who file a joint return may have income of no more than $150,000.

Do individuals with incomes higher than these limits lose all the benefit?

The credit phases-out between $75,000 - $95,000 for singles and $150,000 - $170,000 for married filing jointly. The closer a buyer comes to the maximum phase-out amount, the smaller the credit will be. This law provides a formula to gradually withdraw the credit.

What's the definition of "principal residence?"

Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%). It is also defined as "owner-occupied" housing. The term includes single family detached housing, condos or co-ops, town-homes, or any similar type of new or existing dwelling.

Are there restrictions related to the financing on the property?

The purchaser can use any legal means to finance the property, including government financing such as FHA or state mortgage bonds.

Do I have to repay the tax credit?

There is no repayment for these tax credits (unlike 2008). However, if the home is sold within three years, the credit must be recaptured upon sale.

If I purchased in 2008 do I still have to repay my tax credit?

The $7500 credit in 2008 was more like an interest-free loan. All eligible purchasers who claimed the 2008 credit will still be required to repay it over 15 years, starting with their 2010 tax return.

Can I use the credit amount as part of my down payment?

Some states and local governments have provided mechanisms to provide for this by providing a loan secured against the credit. Check with your loan officer for such programs.

Is there a way to get any cash flow benefits before I file my tax return?

Any first time home-buyers who believe they are eligible for all or part of the credit can modify their income tax withholding or adjust their quarterly estimated tax payments.

Source:  National Association of Realtors, To obtain the entire document, please contact us (info below)

Compliments of Rapid Mortgage, Dominic Gross Loan Officer Springboro, Ohio.  

For more information on your credit score and financing a new home or refinancing an old home call Dominic Gross @ Rapid Mortgage.  Email me today!!  Click here:  dgross@rapid-mortgage.net or call the office 937-748-8888 Ext. 317

461 Lower Carlisle Rd, Carlisle $185,000

REDUCED TO $185,000

Spacious 3 Br, 2.5 Bath Custom brick ranch in Carlisle. Some Ammenities include; Full Finished Basment,12x16 Four Seasons Room, Covered Rear Patio, garden/Jacuzzi Tub in Master Bath, Maple Cabnetry in Kitchen, SS Appliances, 1/2 acre lot w/Mature Trees, and creek. Basketball pad in back yard. Short walk to Roscoe Park. 461 Lower Carlisle Rd, Carlisle $188,500


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Great neighborhood and schools!

$104,900
Willing to negotiate
281 Janet Ave.
Carlisle, OH 45005
For Sale

SALE PENDING

New windows and roof (2009). Sided with shake shingles and part brick. Enclosed 12' X 24' patio with extra room behind garage (possible office or den). Heated attached garage and fireplace insert in living room. Two sheds in large backyard. Wonderful neighborhood to raise a family. Good school system and within 15 miles to major malls.

Bedrooms:3 Bathrooms:1.50 Floors:1.0 Square Footage:1448

Year Built:1958 School District:Carlisle City Schools Garage Size:2.5 Lot Size:0.50 Acre(s)

Amenities:Fireplace, Central AC, Carpeted Floors, Wood Floors, Patio/Balcony, Central Heating, Fenced Yard, Garage, Office/Den

Call Becky

Also try 937-746-5846

REDUCED $20,000 FOR QUICK SALE

$169,900
Asking price is firm
713 Central Ave. Carlisle, Ohio 45005
For Sale

EVERYTHING IS NEW. THIS HOUSE IS READY TO MOVE INTO. NEVER LIVED IN. MAINTENANCE FREE. The upstairs consists of 3 bedrooms with new paint, carpet and loads of closet space. A master bedroom with a huge walk in closet and a master bath. 2 other bedrooms with a bath of their own. New double hung vinyl windows. The 1st floor boasts of black walnut and poplar handcarved trim in the living room, dining room and family room. All 3 rooms have original windows completely refurbished- glazing, paint on outside, poly on inside, protected by new double track storm windows, The window weights were restrung and antique window locks, original, reinstalled. The family room has new carpet and the dining and living rooms have refinished hardwood floors. The living room has a gorgeous black walnut handcarved fireplace and a 6 window- bay window. The kitchen has new Schrock Maple cabinets accented with crown moulding and recessed lights. With double stainless sink and pewter colored faucet. The kitchen sports new refrigerator, elec. range, dishwasher, and over the range microwave. The kitchen and 1/2 bath floor is Columbia laminate flooring. The laundry room has a 1 pc. inlaid floor covering, laundry tub, new washer and electric dryer. Outside- the house is covered with 30 yr. vinyl siding, with a 30 yr. dimensional roof. New gutters and downspouts. New landscaping surrounds the house and a 12x27 wood deck will be the place for all those family get togethers. To store all those garden tools a new 10x12 shed sits in the corner of the backyard. With a 3 car parking area. 2 Furnaces and 2 AC- more even heat and cooling. New lighting, switches, receptacles. New plumbing and electric. 200a underground service. Within 5 mi. of restaurants, Wal Mart, Interstate. Great Location. Taxes $557 half No Garage - But city says no problem in building one.

Living Room

18 x 15 feet

Dining Room

11 x 8 feet

Laundry Room

9 x 7 feet

Family Room

14 x 13 feet

Kitchen

15 x 14 feet

Master Bedroom

15 x 15 feet

Bedroom 2

14 x 11 feet

Bedroom 3

11 x 8 feet

Master Closet

17 x 6 feet

Deck

27 x 12 feet

Call: Jerry Smith

Also try 937-855-2306

FOR SALE BY OWNER 285 EARNHART DR. CARLISLE, OHIO 45005

$184,500
Willing to negotiate
285 Earnhart Dr. Carlisle, Ohio 45005
For Sale

Home features 1850 sqft, plus 1,038 sqft full unfinished basement, 3 bedrooms, 2.5 baths, two story on corner lot with 2 car attached garage, LR,DR,FR,large eat-in kitchen with new countertops, sink, fixtures and newer appliances, main floor laundry room, walk-in closets, paddle fans throughout, maintenance free vinyl privacy fence in rear yard, rear yard wired for hot tubheat, water softner, LOW taxes ($1,600 per year), kitchen appliances & window blinds stay, NEW frieze style carpet throughout, updated bathrooms with all new fixtures and new entry door. and pond, attic storage, shed, central air, gas

Bedrooms:3
Bathrooms:2.50
Floors:3.0
Square Footage:1850

Year Built:1996
School District:Carlisle Local
Garage Size:2.0
Lot Size:0.40 Acre(s)

Amenities:Central AC, Carpeted Floors, Wood Floors, Appliances Included, Patio/Balcony, Basement, Central Heating, Fenced Yard, Garage

Contact Owner Brad Townsend @ 937-776-8944