If you’ve been on the fence about buying a new Phoenix home, you only have 3 weeks left to sign a purchase contract and get up to $8,000 cash money from Uncle Sam. Here’s what you need to know:
- If you haven’t owned a home in the last three years you’re considered a “first-time” homebuyer and are eligible for a tax credit up to $8,000.
- If you’re not a first-time Phoenix home buyer and you have lived in your current home for five of the last eight years, you are eligible for a tax credit up to $6,500.
- Both credits are valid through the end of June for buyers who sign a contract by the end of April.
- You can qualify if you make up to $125,000 a year ($225,000 for couples filing jointly). If you make more, your credit will be phased out; if you make over $145,000 ($245,000 for couples) you’re not eligible for the credit at all.
- The credit can only be claimed on primary residences purchased for less than $800,000.
- If you qualify, you’ll get the credit at tax time – the IRS will subtract the credit from what you owe. If you owe less in taxes than you’re due in credit, you’ll get a refund check.
- The credits are designed to promote long-term home ownership; if you sell your home within three years, you have to repay the credit.
Think of the credit as an $8,000 or $6,500 price reduction on the home, but even better. Instead of stretching that “reduced price” over the life of your mortgage (say, 30 years), you get it all back, in cash, next April 15. It’s a great incentive to buy – whether it’s your first home or a move up. And, given that real estate markets are improving, it couldn’t be a better time.
If you think you might want to buy a new Phoenix home or Scottsdale home any time soon, now is the time to do it. But you’ve got to sign on the dotted line before April 30, so call me today!
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