Even though the economy has been tough, signs of a recovery are starting to emerge. A recovery may mean the opportunity to take advantage of the current situation and make your dream of homeownership a reality.
You likely know current mortgage rates are low and the number of homes available for purchase is relatively high. But we wanted to make sure you are also aware of the Worker, Homeownership and Business Assistance Act of 2009. The Act extends the popular tax credit for first-time homebuyers and creates a new tax break for current homeowners who want to upgrade. Under the new law anyone who has not owned a home in the past three years could claim a credit worth 10% of a home’s purchase price, up to $8,000 based on income. For those who have lived in their home for at least five of the last eight years and want to upgrade, a tax credit of up to $6,500 is available. The tax incentives are scheduled to end on April 30.
Of course you will want to speak to your tax advisor regarding the tax implications of your particular situation. But make sure you take these tax incentives into consideration as you decide if purchasing a home is the right choice for you and your family.
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