OK, yes, now....

NOW, the Home Buyers Tax Credit has been extended.  And there is some cool stuff in it.

Not only can new home buyers still get $8000 from Uncle Sam just for buying a house, but those folks who have owned a house in the past should sit up and pay attention, too.  You may be able to join the party.

Here's the skinny:  Everything remains the same for you if you have never owned a primary residence (or haven't in three years).  Just keep on procrastinating like you have been; you have more time.  I recommend you get moving before the end of April, though.  You must now be UNDER CONTRACT by April 30, 2010.  You must also close your sale by June 30, 2010.  That gives you 60 days to close which is double what you had the first go 'round.

OK, here comes the cool part.  People who HAVE owned a primary residence in recent years can get a tax credit of up to $6500 if you meet certain requirements.  The biggie is that you have to have lived in your house for a consecutive five of the last eight years.  Note that this tax break doesn't apply to home sales.  But, what you may consider is that you have closing costs when you sell your home, buyers of your current domicile might ask you to pay their closing costs, and, if you hire a REALTOR, you will have commissions to pay.  $6500 might go a long way to covering those costs.

I really doubt that we will get another hand-up from Congress in 2010.  If you are thinking of buying a house or selling your current residence, now might just be the time.  While I will not suggest that you make such large changes in your life for a simple tax benefit, I will say that you should consider it when thinking about your options.

There are some income limitations, time requirements, and what-not, so read the IRS's take on the whole thing here:
The Worker, Homeownership and Business Assistance Act of 2009

NO NO NO!! Not yet anyway.

The New Homebuyer Tax Credit HAS NOT BEEN EXTENDED!!   yet.

(sorry for shouting)

There was a huge amount of DISinformation disseminated over the weekend about the tax credit being extended.  There are so many people desiring that this happen that many of those people bought into the rumor without any verification at all.  They just believed the hype.

I think the tax incentive will be extended (possibly improved).  There are a few things that kind of need to happen first, though.  A bill needs to be written, get out of committee, voted on, passed and then 'passed' to the other side of Congress, voted on again, passed again, and signed by the President.  Just formalities, right?

Congress is what it is.  Sometimes they get it right and other times, not so much.  I will be sure to post here when the tax credit does incur some changes.  Stay tuned!

Over 65? There's a property tax advantage to it.

If you have reached the magical age of 65 and you own your own home in Arkansas, you have an advantage over the rest of us: you can have the assessed value of your principal residence frozen. Amendment 79 caps the assessment of your principal residence if you were 65 or older on January 1 of the current year.

There are two things to note, the first being that you must be 65 on January 1. If you turn 65 during the year, you get the tax benefit in the following year. The second thing is that this does not have anything to do with your area's millage rate. Here in Conway, the millage rate is 47.60. If the people of this great city vote a millage increase, you get to participate in that higher rate, too.

There is one more thing that affects this advantage: additions. If you improve your property, that opens it up for a re-assessment. Check with the County Assessor with any questions you have (and don't forget to ask about the $350 Homestead credit while you're at it). Our Assessor is Jeff Stephens and his number is 450-4905.

Only 45 shopping days left....

Yep, only 45 shopping days left. At least, that's what I recommend. Let's not wait until the last minute.

Come November 30, the $8000 first-time home buyers tax credit goes bye-bye. "But, wait!" you say. "That's 91 days from today. Where did you learn to count?"

Ah, but you have to CLOSE by November 30. If you are a true first-time buyer (and most who qualify for this credit are), you may not know that it can take weeks to close on a house. To have a reasonable reliance upon getting your tax credit, you ought to be under contract by October 15. That gives you 45 days from today to shop for that home of your dreams.

If you are holding out for a better deal, keep in mind that it will literally take an act of Congress to make it happen. There are extensions and expansions in the pipeline right now. These bills are stuck in committees and haven't passed over all the hurdles to become law. Roll the dice and hope for the best? That is a question you will have to answer for yourself.

That does lead me to one point, though. Please don't rush out and buy a house just for the tax benefit. Purchasing a home is a big decision and one you shouldn't take lightly. A REALTOR can help you navigate the challenging process of searching, negotiation, and purchasing your home. We are trained to help you find houses in your price range and possibly spot potential pitfalls that may not be obvious.