Why Buy a Home? It's all about the Benjamins!

Homeownership has proven itself to be a wise long-term investment. Several reasons for being a wise investment include:

-Paying rent pays your landlord's mortgage. Every dollar you spend toward principle on your mortgage, that builds your equity and your wealth.

- Income taxes favor those who own a home. Additional deductions such as mortgage interest, property taxes, and some closing costs reduce the amount of money you pay in income taxes.

- When you finally do go to sell, your equity (original mortgage amount, minus principal paid) belongs to you, and is often not subject to income taxes.

- And, for purchases made between January 1, 2009 and November 30, 2009, you may be eligible for an up to $8,000 First-Time Homebuyer Tax Credit.

$8,000 First-Time Homebuyer Tax Credit

To entice first-time homebuyers into the marketplace, an updated First-Time Home Buyer Tax Credit has been enacted, for eligible home purchases between January 1, 2009 and November 30, 2009, which requires no repayment as long as the home is not sold within 3 years from purchase

Key aspects of this tax credit:

FIRST-TIME HOMEBUYER TAX CREDIT

As Modified in the American Recovery and Reinvestment Act

Feature For First-Time Homebuyers For Current Qualifying Homeowners
Amount of Credit

$8,000 ($4,000) married filing separate)

$6,500 ($3,250 married filing separate

Eligibility

May not have had an interest in a principal residence for 3 years prior to purchase

Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years

Termination of Credit

Purchases after April 30, 2010

Purchases after April 30, 2010

Binding Contract Rule

So long as a written binding contract to purchase is in effect on April 30, 2010 the purchaser will have until June 30, 2010 to close

So long as a written binding contract to purchase is in effect on April 30, 2010 the purchaser will have until June 30, 2010 to close

Income Limits

$125,000 - Single
$225,000 - Married
Additional $20,000 Phase Out

$125,000 - Single
$225,000 - Married
Additional $20,000 Phase Out

Limitation on Cost of Home Purchased

$800,000

$800,000

Purchase Made by a Dependent

Ineligible

Ineligible

Additional Requirements

Purchaser must attach documentation of purchase to tax return

Purchaser must attach documentation of purchase to tax return

Coldwell Banker Tulsa Real Estate Real Estate