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Final score: $8,000 for homebuyers


Congratulations!  You have decided to purchase a home, or are thinking about buying one.  You'll be joining the ranks of hundreds of families who realize that home ownership offers a number of benefits including building equity, saving for the future, and creating an environment for your family.  When you own your own home, your hard-earned dollars contribute to your mortgage. The equity you earn is yours.  Over time, your home will increase in value.

In the following reports, you'll find the information you need to make a wise buying decision.  We'll take you through the planning process step-by-step , to help you determine which home is right for you.  You'll find a host of informative articles on mortgages, viewing homes, the offer, closing details and moving.

Please contact me if you have any questions about buying a home in Rhode Island 

Final score: $8,000 for homebuyers

NEW YORK (CNNMoney.com) -- There's a nice windfall for some homebuyers in the economic stimulus bill awaiting President Obama's signature on Tuesday. First-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes.

A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount. But there has been a lot of confusion over this provision. Adam Billings of Knoxville, Tenn. wrote to CNNMoney.com asking:

"I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?"

The short answer? Yes, Billings would get back the $8,000 plus what he'd overpaid. The long answer? It depends. Here are three scenarios:
The house you purchase must be your "main" home.

For any multiple home owners or potential multiple home owners out there, the new tax credit will not count toward non-primary homes.

"Main" home is defined by the plan as "any home that will be used as principle residence," and includes "single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats."

 The buyer must live in the home for at least three years after the purchase date.

Home purchasers cannot move, sell or otherwise leave the home they purchase for at least three years to retain eligibility to receive the tax credit.

 The cost of the home is $80,000 or more.

According to the way the plan is written, the home buyer receives 10 percent of the home purchase price -- meaning, to receive the maximum available $8,000 credit, the home must be bought for $80,000 or more. Also, married couples filing separately can receive a maximum of $4,000.

 

Scenario 1: Your final tax liability is normally $6,000. You've had taxes withheld from every paycheck and at the end of the year you've paid Uncle Sam $6,000. Since you've already paid him all you owe, you get the entire $8,000 tax credit as a refund check.

Scenario 2: Your final tax liability is $6,000, but you've overpaid by $1,000 through your payroll witholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.

Scenario 3: Your final tax liability is $6,000, but you've underpaid through your payroll witholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.

To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as "first time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.

Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)

Applying for the credit will be easy - or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit


Have you had a chance to check out the listings on my site?  There is an unbelievable tool called Google Earth that you can use to search properties.  Google Earth uses satellite imagery to show you the world.  On my site, listings are marked and you can search and view these listings, it’s really amazing. 

It’s the most advanced way to explore a property.  You can see a listing within its own neighborhood.  Find how it is situated with respect to churches, schools, parks and roads, without actually having to drive to the neighborhood.  Plus it’s just a lot of fun to play around with!

If you haven’t used Google Earth to search and view my listings, I would definitely encourage you to visit my site and give it a go.  Even if you’ve used it already, try it out again as new listings are constantly being added.

When you find a home you are interested in, I would love to hear from you.  Or if you just have some questions please do not hesitate to contact me.
 


 

Buying a home can be one of your most significant investments in life. Home Buying Articles and Advice provides detailed information to assist you in making an intelligent and informed decision.

 


Want to sell your house? Visit Home Selling Articles and Advice, and get the maximum market value for your home and learn valuable tips to help the entire process go more smoothly.


Below, select desired reports and complete the form provided.

 



Buying Your First Home

Many renters are starting to think about purchasing a home of their own. This article highlights several factors that should be considered when purchasing a home.

The Right Home at the Right Price

This article helps you become a savvy buyer, by pointing out some of the pitfalls inherent in the home-buying process.

Avoid Common Buyer Errors

Some buyers, however, caught up in the excitement of buying a new home tend to overlook some items. When you have a systematic plan before you shop, you’ll be sure to avoid these costly errors. Here are some tips on making the most of your home purchase.

But Do You Need It

Buying a home can be an emotional, time-consuming, and complex process. There are a few things that you can do to help make the process go as smooth as possible.


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