The $8,000 First-Time Home Buyer Tax Credit Benefits Lake Norman Buyers & Sellers

The US economic stimulus bill is helping our Lake Norman NC residential real estate market. First-time homebuyers will be able to claim a credit worth $8,000 or 10% of the home’s value, whichever is less, on their 2008 or 2009 federal income taxes.

Tax filers will receive the credit as a refund check. If the income tax liability has been paid in full for the tax year, the credit will be for the full amount. If the tax liability has been underpaid for the tax year, the refund check will be for the credit amount minus the underpaid amount. If the tax liability has been overpaid, the refund check will be for the credit amount plus the overpaid amount.

To qualify for the credit, the first-time buyer must purchase the home between January 1, 2009 and November 30, 2009. The buyer cannot have owned a home for the past three years to qualify as a “first-time home buyer.” The buyer must also live in the house for at least three years, or they will be obligated to pay back the credit. To qualify for the credit, a single buyer must earn less than $75,000 per year while couples are limited to $150,000 earned. Higher income buyers may receive a partial credit. Those who have already completed their 2008 tax returns can file amended returns to claim the credit.

Economists for the National Association of Realtors estimate that the $8,000 credit will bring an additional 300,000 new homebuyers into our nation’s real estate market. While there are no current figures as to how many homebuyers will benefit from buying Lake Norman NC area homes for sale, that figure will no doubt increase from the stimulus bill. First-time homebuyers buy their first home while those sellers purchase their next home and so forth. That ripple effect is what the Lake Norman NC area real estate market has experienced over the past few months.

For more information on the first-time homebuyers credit or for information on buying or selling a Lake Norman NC area home, contact Bob Warchol at Coldwell Banker United, Realtors via cell, 704-881-1921, or via email, Bob.warchol@cbunited.com.