The recently approved American Recovery and Reinvestment Act of 2009, combined with favorable resale prices and interest rates, offers home buying bargain hunters a once in a lifetime purchasing opportunity. The measure has features designed to stimulate the economy and spur home sales with the hope that this will trigger a ripple effect throughout the overall economy. Features include:
An $8,000 tax credit - up from $7,500 - available to first-time home buyers for purchase of principal residence after January 1 and before December 1 2009.
The credit applies only to homes purchased during 2009.
The credit does not require repayment. However, if home is sold within three years, entire credit is recaptured upon sale.
The credit will be claimed on tax return to reduce purchaser's income tax liability. If any credit amount remains unused, then unused amount will be refunded as check to purchaser.
Purchaser and purchaser's spouse may not have owned a principal residence within the three years prior to purchase.
The full amount of the credit is available to individuals with a gross adjusted income of no more than $75,000 or $150,000 if a joint return is filed. The credit phases out above those caps ($95,000 and $170,000).
Eligible properties include any single-family residence - including condominiums, co-ops or townhouses - that will be used as a principal residence.
While most of the provisions are similar to the measure approved in 2008, there are some differences, such as: purchasers who utilize revenue bond financing now can use the credit.
This is your opportunity to take advantage of the billions of dollars that the government is handing out to taxpayers to get the U.S. Economy back on track. If you are looking for a property in Los Angeles county cities of: Carson, Long Beach, Gardena, Torrance, Lakewood, Bellflower, Compton, South Gate, Downey, Norwalk, Santa Fe Springs, Whittier, Cerritos, Hacienda Heights, El Monte, La Puente or Pomona contact one of our terrific IET agents who can assist you in purchasing before this credit expires 12/1/2009 (based on a 45 day closing period this means you need to be in escrow by mid October 2009)