$8,000 First-Time Home Buyer Tax Credit: Need Some Questions Answered?

cashI hear a lot of misinformation about the $8,000 First-Time Home Buyer Tax Credit.  A lot.  There are a couple things I’d like to clear up.  First,  a first time home buyer is not necessarily a first time home buyer.  If you have not owned a home in the last three years then you may qualify as a first time home buyer.  Weird, I know.  But remember your federal government is involved.

Second, there are many limitations.  Simply the best website I can find on the First-Time Home Buyer Tax Credit answers most/all of your questions on the FAQ’s page.   I’m not going to sit here and bang out a regurgitated webpage when they do it so nicely.  Click the link.

Third, a Tax Credit is real money folks.  Listen, I’m not your tax advisor nor am I a trained CPA.  But if you owe $4,957 in federal taxes in 2009 and you buy a house and you qualify, not only will you get back all of your $4,957 in taxes but you’ll get an additional $3,043.  If that’s not redistributing wealth I simply do not know what is.  But heck, if you qualify for it you simply must take it.  I would.

Visit the link above.  Then give me a call at 913.568.1579 to help you find a house.  Then close by December 1, 2009.  Then do your taxes next year.  It’s as simple as that.

3 Comments

Filed under Kansas City Real Estate, Misc. Real Estate

3 responses to “$8,000 First-Time Home Buyer Tax Credit: Need Some Questions Answered?

  1. Pat

    From Jim Cramer (The Stock Guy)

    He telling 1st time home buyers to use the tax credit and below he talks about inventment property.

    “But maybe I can show you how I feel about this issue beyond the talk of stocks. I am looking at buildings and property all over the New York area, the area that I know isn’t done going down. I am not going to wait until it has bottomed. I wouldn’t do that for stocks … why the heck would I do it for real estate? Who the heck is smart enough to catch a bottom? You buy some here, you buy some lower, you get some in just like stocks.

    I have a bead on an eight-unit apartment building that needs a little work in the area, and I am patiently waiting for the damaged seller to break price to my levels at which I know what when I turn the lights in the morning, I make money.

    This is one of several that I am considering and bidding for, letting the media talk prices down and allowing the scare-tactic stories drive prices down to my levels.

    And what are my levels? Those are levels where if you take the rent, the depreciation and the interest charges, you end up with a profit-producing entity that can produce income for years regardless of whether there is price appreciation — and, yes, naysayers, I get a duplex for about $2,000 a month in interest for free.”

  2. Gee. Figuring depreciation into your property to determine whether or not it’s profitable. Who else recommends that?

    Just about anyone who understands how real estate investment property should be regarded.

  3. Good Post on the tax credit. First, a first time home buyer is not necessarily a first time home buyer. If you have not owned a home in the last three years then you may qualify as a first time home buyer. Weird, I know.
    I have worked as a home inspector for 11+ years. We have inspected everything you can think of. I take the time to read and write many blogs and articles on home inspection and real estate. This was a true joy to read, well done!

    Mr D Salvato
    Founder of
    HomeInspectionServices.org

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