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Tag Archive: first time home buyers tax credit

Home Buyer Tax Credit: Are you talking about it?

by on Feb 11, 2010 | REALTOR® Marketing

Last October most people thought the first time home buyers’ tax credit was over and done with, the deadline of November 30, 2009 looked impossible for most people to close escrow within the time frame necessary to claim their tax credit of up to $8,000. Don’t let this happen twice!

Thanks to the National Association of REALTORS’® call to action and the overwhelming response of its members, we got an extension and expansion of this valuable program.  Its new expanded version not only extends the first time home buyer tax credit but now opens the program up to property owners that have owned their home for at least five (5) years.

I invite you to visit REALTOR.org for a full explanation of this program together with free and low-cost pamphlets to order/download explaining how this works.  Bottom line for both tax credit groups is they must have a property under contract by April 30th, 2010 and close escrow by June 30th. Come on people – time’s a wastin’.  Let hit the road running and help clients take advantage of that credit.  Check out what’s going on right now to help you:

  • It’s Tax Time – You have an instant audience, consumers are looking at their tax bite and thinking they’d like to keep more of their money next year.  This is the way to do it and they get a house on top of it.  What a “win-win” for them and you!  Nothing makes people appreciate a tax break more than preparing their taxes.
  • The Market is GREAT for Buyers -  Prices are affordable and money is cheap.  Oh, by-the-way, the government is willing to give you up to $8,000 as an added incentive.
  • A Good Reason to Call -  I hear from real estate agents constantly who say they would call their past clients more often if they had something to talk about.  Well, you got your wish with the Tax Credit.  They may not be personally interested but they undoubtedly have family and friends who will be.  They can prospect for you – what a DEAL!
  • Open House Opportunities – Open houses have always been a great way to prospect but now they have an added sweetener.  Go door to door in the streets surrounding any open house you are holding.  Offer a “sneak peak” especially for neighbors and hand out the NAR brochure on the Tax Credit both to neighbors and at the open house.  It’s not only a great program but a real ice-breaker.

So here are four great reasons just in case you need motivating.  Now is the perfect time to get the word out.  No more excuses just a nifty way to increase your business.

For John Hall & Associates’ REALTORS® I’ve also included a few ice-breaker talking points along with one of the tax credit pamphlets on the company intranet.

Extend the $8000 Tax Credit

by on Sep 18, 2009 | Real Estate News

NAR’s REALTOR® Action Center has a Call to Action to help extend the $8000 first time homebuyers tax credit.  Please support NAR and take the time to fill out the form.  NAR does the rest of the work for you!

Marketing the $8,000 First-Time Homeowner Tax Credit

by on Sep 8, 2009 | Careers and Training, REALTOR® Marketing

It’s crunch time!  We are rapidly approaching the $8000 first time homeowner tax credit deadline of December 1st, 2009.  Make sure your clients, their friends, kids, and other relatives know the ins and the outs of this 8000 dollar credit.

The National Association of REALTORS® has a page on realtor.org dedicated to getting the word out about this program.  They have even created marketing materials for you to use – the time consuming work is done for you.  Here are some examples of the materials available on their site.

September 10th, 2009 Update: Based on Tom Martinell’s question and Justin McHood’s answer,  I removed the flyer that promotes using the $8,000 tax credit as a down-payment.  If there is an Arizona lender out there that has a program to use the first time homebuyer credit as a down payment, please speak up and I will replace the link.

First Time Home Buyer Tax Credit

by on Feb 18, 2009 | Careers and Training, Legal Issues, REALTOR® Marketing


Marge Lindsay just got an email from Margie O’Campo de Castillo through the REEA (Real Estate Educators Association) network with excellent information about the new first time home buyer tax credit.

First time home buyer tax credits as amended by the American Recovery and Reinvestment Act of 2009 (HR 1).

Please consult your tax advisor / accountant to determine whether you are eligible for this tax credit before making any decisions or changes to your tax status.  This is for information only and should be verified by a tax professional.

The 3 changes to the first-time home buyers tax credit program include:

Tax credit has been increased to $8,000.

Homes have to be purchased between January 1, 2009 and December 31, 2009.

No repayment/recapture clause for homes sold after 36 months of occupancy and ownership.

1. The Tax Credit is for home buyers (either spouse if filing jointly) who have NOT owned a principle residence during the three-year period prior to the purchase.  Ownership of vacation property or rental property does not disqualify home buyers from this program.

2. The maximum credit is $8,000 or 10% of the home purchase, whichever is less.

3. The credit is available for homes purchased on or after January 1, 2009 and before December 31, 2009.

4. To qualify for the full tax credit, married couples’ modified adjusted gross income (MAGI) should be under $150,000 and single filers’ MAGI should be less than $75,000. Partial tax credits may be available for married couples with MAGI incomes of over $150,000 but under $170,000 and single filers with incomes over $75,000 but under $95,000.  If married couples who qualify for the first-time tax credit file separately, they would both claim 5% of the home purchase or $4,000 each (whichever is less) on their tax returns.

5. Home buyers who qualify for this program, but who do not intend to purchase a home till the end of 2009, may elect to alter their tax withholdings (up to the amount of the of the tax credit) in order to save up money for a down payment.  However, if the purchase of the home does not occur, the taxes must be repaid to the IRS.

6. There is no recapture or repayment clause IF the home is owned for at least 36 months.

7. The effective date of purchase for new construction (even if buyer owns title to the lot) is the date the owner first occupies the house.  So even if construction began in 2008, as long as the home and buyers qualify for the tax credit, they will be eligible if they take possession any time during 2009.   However, new construction bought from the builder is only eligible if the settlement date (closing) takes place between January 1, 2009 and December 31, 2009.

8. The law allows taxpayers to elect to treat qualified 2009 purchases as a 2008 purchase so that they can receive the tax credit on their 2008 tax returns.

9. The full amount of the eligible tax credit is refunded to the buyer, regardless of whether the buyer has paid an equivalent amount in taxes.

The American Recovery and Reinvestment Act of 2009