The tax credit is for first time home buyers only,  which the IRS defines  as someone who has not owned a principal residence during the three-year period prior to the purchase. The credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.

Pittsburgh Real Estate For Sale

What is also great? The tax credit can be taken for THIS YEAR, but simply submitting and amendment to your 2009 taxes, so you should get your tax credit before the end of the summer. The tax credit is for 10% of the home’s purchase price up to a maximum of $8,000 on homes priced at $800,000 or less. That is quite a nice sum of money to put towards your house, decorating your house, or even saving for a rainy day or a new roof down the road.

For homes purchased on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit. Additionally, so long as a binding contract is signed by April 30, 2010, the IRS will also grant the tax credit, so long as you close by June 30, 2010.

Relocate to Pittsburgh

So while I don’t want you to feel pressured or rushed into buying Pittsburgh homes for sale, if you are certain you will be buying a home in the next few months, it would be a shame to miss out on the tax credit by only a few days.  If you have questions, or want to put your Pittsburgh MLS home search into high gear, simply contact me, Jim Dolanch, your trusted Pittsburgh real estate agent, to learn more about Pittsburgh PA home buying and make sure you can get the Federal Housing Tax Credit.

Until next time,

Jim

Pittsburgh Homes For Sale

First off, when you start browsing the Pittsburgh MLS home search through www.jimdolanch.com, you have the choice of also browsing Pittsburgh real estate for sale by area or zip code, so if there are certain community or area amenities and aspects you would like to enjoy, be sure to learn more about Pittsburgh area communities. By spending a little bit of time researching the areas, you can narrow down your home search by seeing homes that are only in the communities that interest you.

Pittsburgh Real Estate Financing

Second off, you must think about what kind of financing you will be using. If you are an “empty nester” you may be coming to the home buying table with a full cash offer, or if you are a first time home buyer, you may have 10% down. If you are a Pittsburgh first time home buyer, you may not have much credit history on your side; however, if what you have is in fantastic order, you can still get a great rate. As a second or third (or fourth) time home buyer, you do come to the bale with a boost up on the credit, as you have already proven yourself as a responsible home owner, capable of making reliable Pittsburgh real estate mortgage payments.

All of these aspects change the way your lender or bank will set up or mortgage, what interest rate you have, and  how much you can borrow.However, if your credit is questionable, now is the time to get it in order. A good year (or more!) of solid, reliable credit can do wonders to your home buying power, approval with lenders, and your mortgage rates. The longer you have a positive credit score, the more power you have to pick and choose your mortgage, your lender, and your rates.For even more guidance, you can request my Pittsburgh Home Buying Guide or contact me.

Selling Pittsburgh Real Estate

Lastly, For most home buyers, selling Pittsburgh property is the very first step that must be done before getting serious about buying a new home. How do you work out this process? What if a home you love comes on the market, but you  haven’t gotten an offer on yours yet, or the offer isn’t settled yet? With the help of an expert Pittsburgh real estate agent, you can easily make and offer that is contingent on the selling of your current home.

Pittsburgh Real Estate Questions and Answers

Do you have other Pittsburgh real estate questions? Feel free to contact me, Jim Dolanch, your expert Pittsburgh Realtor, to learn everything and anything about the Pittsburgh area.

Until next time,

Jim

Pittsburgh Homes For Sale

Pittsburgh home sellers will be excited to learn that buying activity in Allegheny County jumped 18.1 percent in October, resulting in $227.1 million spent on housing, as compared with October 2008’s $192.3 million.

Pittsburgh Home Buyers

The substantial jump in Allegheny County sales, combined with a 6.4 percent increase in Westmoreland County, offset modest drops in Beaver, Butler and Washington counties to boost the five-county region 9.7 percent. Those of you searching for a Pittsburgh area home can request the Pittsburgh home buying guide to learn more details and tips on home buying in our areas right now.

Other questions about the Pittsburgh real estate market? Simply contact me, Jim Dolanch, your expert Pittsburgh real estate agent to find all your answers.

Until next time,
Jim

But wait, you say? We have until Nov. 30, 2009, right?

Yes and no. You have until Nov. 30th to be closed on a Peters Township area property.

That means you have to find a Pittsburgh home for sale, make an offer (or two or three counter offers), get inspections, get the Peters Township, PA real estate appraisal (which might come in low, probably sending you back to the offer table), check Pittsburgh, PA property titles (perhaps clear titles), get your Peters Township, PA real estate loan approved, get the loan money on time, and get all problems found during the inspection fixed. All before Nov. 30th.

By Nov. 30th, you must have the house keys in your hand in order to take advantage of the tax credit, so the sooner you start the Pittsburgh area home buying process, the better.

Search Pittsburgh Homes for Sale

An expert Peters Township, PA Real Estate Agent will try to foresee all the potential problems that could arrise in the process of buying a Pittsburgh real estate home, but there always things that could arise that are beyond anyone’s control. Overall, the more time you allow for buying a Pittsburgh area home the better chance you have of closing in time for the credit.

Because though you shouldn’t be buying a home just for the credit, it would really stink to close on Dec. 1, 2009 and miss out on an $8000 tax credit.

If you have questions about Pittsburgh Real Estate or want to browse the Pittsburgh and Peters Township MLS home search, then contact me, Jim Dolanch, for all your Pittsburgh and Peters Township first time home buying tips.

Until next time,
Jim

 The First Time Home Buyers Tax Credit is a simple plan, but it brings many pages of paperwork, explanation, and rules. To help answer all the questions that can arrise from about the credit, I have chosen some of the top questions I hear, from Pittsburgh Home Buyers as well as, Peters Township Home Buyers:

Pittsburgh and Peters Township Home Buyers Tax Credit Top Questions

1. Are there restrictions on the type of home? What types of homes will qualify for the tax credit?

It is important to note that you cannot purchase a home from your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse. Please consult with your tax advisor for more information. Also see IRS Form 5405.

2. I read that the tax credit is “refundable.” What does that mean?

 
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

3.What if I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?

Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.

In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.

Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns). No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase.

Buying a Home in Pittsburgh Area

All the previous information is just the tip of the iceberg. As you can see, there are many items Peters Township home buyers need to understand about the $8,000 tax credit. You can get the best information form a knowledgeable Pittsburgh Realtor or Peters Township Real Estate Agent; however, make sure you consult your tax professional for the full run down on how the tax credit may affect your taxes or effect savings for you!

And as always, if you have any questions about Pittsburgh Real Estate, Peters Township Homes for sale, or would just like to browse the Pittsburgh Area Real Estate MLS Listings, feel free to contact me, Jim Dolanch, your Peters Township Realtor, anytime.

Until next time,

Jim

Since the entire tax credit document is very long , I thought I would do a brief overview, with future posts on more specific aspects to the tax credit. 

Please note  the short overview below pertains to the American Recovery and Reinvestment Act of 2009:

• The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

If you are ready to start the search for Pittsburgh real estate, you can begin by using my free Pittsburgh and Peters Township MLS Search or by contacting me, Jim Dolanch, your Pittsburgh and Peters Township Realtor. Questions about whether buying Peters Township real estate will qualify for the tax credit? I can help you naviage the waters and together we will get you the best deal possible on your Peters Township area property.

Until next time,

Jim