Want $8,000 in federal tax credit and not have to repay it?
How about $15,000 in tax credit?
In a housing market where there tend to be more sellers than buyers, the purchase of a home right now can reap some tax benefits.
First-time homebuyers or someone who hasn't purchased a home in the past three years can be eligible for up to $8,000 in tax credit.
How it works is homebuyers who purchase a home priced less than $80,000, the tax credit is equal to 10 percent of the purchase price. For example, a first-time homebuyer purchasing a home for $65,000 would receive a $6,500 tax credit.
Connie Cooper with Carpenter Reality wants people to know it is free money. The $8,000 does not have to be paid back and it is cash in the hands of qualified homebuyers.
The credit is a line item on tax forms. Should the homebuyer already have his or her 2009 taxes figured, Cooper said to have it amended.
"People do not have to wait until next year to receive the $8,000," she said.
To receive an additional $15,000, buyers can purchase a foreclosed or HUD home. This tax credit, which is also part of President Barack Obama's economic recovery plan, can be used towards closing costs, the down payment and even repairs. There is zero interest on repayment.
The "American Recovery and Reinvestment Act of 2009," a $780 billion package, with roughly 35 percent of the package devoted to tax cuts was signed by Obama in February.
Cooper said there is a deadline fast approaching to receive this tax credit. Homebuyers taking advantage of the credits need to have the home purchased and moved in before Dec. 1.
Any area resident interested in learning more about this bill and how to receive the tax credits can attend a free informational seminar at Dixie Chopper Business Center at 6 p.m. Wednesday.
Carpenter Reality has partnered with Abstract Title Insurance, Country Wide Home Loans, First National Bank of Cloverdale, Fifth-Third Bank, Hammer and Associates CPA, Old National Bank, Terre Haute First Financial and Winterwood Mortgage to bring this information to Putnam County residents.
"We want to educate the public," said Cooper of the seminar. "We want people to get this money that has trickled down from Washington to Greencastle."
Dawn Ayler, a mortgage loan officer with Fifth-Third Bank, will be on hand to discuss and answer questions regarding the $15,000 tax credit on the purchase of a foreclosed or HUD home.
The seminar is free and refreshments will be served.
"(The seminar) is about community awareness," said Cooper.