All because I bought in Villebois I get a refund check?

Lender Notes:

There is a nice windfall for some homebuyers with the economic stimulus bill signed into law by President Obama in February. This historic bill gives first-time homebuyers the ability to claim a tax 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 withheld they paid during the year plus anything extra they had to pony up when they filed their returns) was less than that amount. Does that mean if I purchase a home in the Villebois Village Center now that I would get an extra $8,000 added on top of my current refund? The short answer is…Yes!

Here are three scenarios that help explain this new tax credit:

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 withheld. 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 have underpaid through your payroll withheld 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 tax credit, the purchase must occur between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as a “first-time” buyer. You must also live in the house for at least three years, or you 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 as doing your income taxes. It will be claimed 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.

* Blog entry referenced from CNNMoney.com

Contact Andy Green with Costa Pacific Homes today at 866-580-2836 or Blog@CostaPacific.com for more information on how you can secure your historic low interest rate and live in Villebois.