Wednesday, January 20, 2010

Steamboat First Time Homebuyer Tax Credit

If you are considering using the first time homebuyer's tax credit It's time to start thinking about if this is a good opportunity for you. Properties must be under contract by April 30, 2010 and close by June 30th, 2010 so I would recommend starting to get a feel for what you like and the market by February or March and looking seriously by March or the beginning of April. It is also a good time to start getting your info together and talking to a great mortgage broker. I can recommend a couple if you would like.

The tax credits are a tax credit not a deduction. It is important to consider that a tax credit is a dollar for dollar tax reduction, rather than a reduction in taxable income that would only save you a percentage of your deduction based on the tax rate. A first time homebuyer is defined as a person that hasn’t owned a home in the last three years.

For example, on the $8,000 first time homebuyer tax credit, if you owe $1,000 in taxes, you will receive a refund of $7,000. To qualify for either the first time homebuyer tax credit or the move up credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. Please be sure that you consult your tax consultant to be sure that you qualify for the credit.

As always, please call me with any questions 970-819-6930

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