Monday, February 23, 2009

New Stimulus Package

Here is what Barack Obamas New Stimulus Package can mean to you.


$8,000 Tax Credit For First Time Home Buyers

The $8,000 tax credit for first-time home buyers should entice some first-time home buyers to “jump-in” and buy a home, It's a great incentive you can take advantage of and get a nice tax credit and increase your tax return by upto $8,000.
  • Available only to first-time home buyers-(must not owned a home for less than 3 years)
  • The tax credit is not a loan and does not require repayment*

    *If the home is sold within 3-years, the $8,000 tax credit must be re-paid
  • The tax credit reduces the home buyer’s tax liability; if the buyer’s liability is less than $8,000, the remaining credit will be issued as a check
  • Home purchase must be for a primary residence
  • The credit is available on home purchases between January 1, 2009 and December 1, 2009
  • If you are single and make $75,000 or more, or are married and make $150,000 or more, you do not qualify for the tax credit
  • The credit is not eligible if the seller is a relative of the buyer
Home Energy Credit

Tax Incentives for Improving Existing Residential Real Estate

  • Homeowners can recoup up to 30% of the cost of installing energy saving features in their home
  • The credit is valid on up to $1,500 of improvements
  • Over $4 billion was allocated for the Home Energy Credit
  • Examples of improvements: Energy Efficient Windows and Doors, Air Conditioning, Furnaces, Water Heaters

Breakdown of the Stimulus Package’s Expenditures
Tax Relief - $288 Billion
State and Local Fiscal Relief - $144 Billion
Infrastructure and Science - $111 Billion
Protecting the Venerable - $81 Billion
Health Care - $59 Billion
Education and Training - $53 Billion
Energy - $43 Billion
Other - $8 Billion

President Obama will also start outline a plan to help decrease foreclosures and help struggling homeowners meet their current financial commitments. The new plan is part of TARP 2, The 3 step financial Stability Plan involving a government investment of up to $2 trillion dollars. Limited details include analyzing and investing in struggling banks, creating a “bad bank” for purchasing unhealthy assets from financial institutions and investing funds in stimulating business and consumer lending.

Keep an eye on the news for more information. New Buyers can save now and get the right home. I have also been told that if you are a new home buyer and purchase before you do your taxes this year (or get your taxes amended after you have already got them done) you can claim the 8,000 tax credit this year. Please consult your tax professional to varify this. Yet, do that or using the home energy credit can save you alot this year and in the future.

Contact me asap for more questions or if you are interested in getting this $8,000 back for buying a home this year !

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