Moore Mortgage Solutions

    Did you buy a home this year? After April 9, 2008? Thinking about buying a home this year or next year? Before July 1, 2009?

    These are important dates to remember for first time home buyers. A first time home buyer is classified as someone who hasn't owned in a home in the past three years.

    Why are these dates, April 9, 2008 to July 1, 2009, so important? 

    In the Housing and Recovery Act of 2008 that was signed into law this past month, you may be eligible for the new tax so-called "refundable" credit. As a first time home buyer, you may be allowed to deduct up to 10% of the purchase price of your primary home not to exceed $7,500.

    If you live in the Seattle area and have or are planning to purchase a home between these dates, that could mean a total "refundable" credit of $7,500 for you and your family.

    This so-called "refundable" credit does have some interesting guidelines to it.

    First, it is payable back to the Federal government. This is done over a 15 year period and works out to be a little over $500 per year on the full $7,500. This credit will be accelerated if the home ceases to be your primary residence or is sold.

    Second, there is an income restriction for the full credit. For a single person, it is $75,000 and for jointed returns, it is $150,000. And yes, there is a phase out for higher income levels up to $95,000/$170,000 respectively.

    Third, as always when dealing with taxes and especially new tax law, please talk to your CPA or tax person about this. This is one deduction you don't want to miss out on if you are allowed to take it. Also your CPA or tax person will be about to tell you about the new standard deduction for non-itemizers which has been increased by $500 for single/$1000 for joint returns for their property taxes.

    This is a great time to purchase a home. Don't miss out on this opportunity to receive this "refundable" credit.

    In the meantime, please feel free to contact me with your housing questions.

    And please make each day an inspired one!

Betsy Moore

206-331-2749

betsy@mooremortgagesolutions.com