Real Estate Tax Credit

After doing a bit of research, I have discovered that I am not eligible for the home buyer tax credit. How sad. But I know many of you out there are. Not sure what I am talking about? There are currently two tax credits available:

1. First Time Home buyers-Receive up to $8000 credit (meaning you do not pay back) on your tax return the year you purchase a new home.

2. Long Time Resident-Receive up to $6500 credit for those who currently own a home but are in the market to buy. This one is a bit tricky. You must have lived in your current home five consecutive years of the last eight years in order to qualify.

For further details, here is Form 5405 that you fill out with your tax return:
http://www.irs.gov/pub/irs-pdf/f5405.pdf

If you do qualify, but did not know about the credit, you can simply file an amended return to get your credit.

I love this idea. It really has helped pushed market values up in real estate. More and more people are buying and my current real estate value is increasing. This is great since we took a bath with two of our properties. Yes, we were upside down....in the water so to speak. Not by much but any amount underwater is not good. This is why we do not issue or take 100% financing loans. Bad Crystal, bad! Now we are breathing again. Lesson learned.

When Nathan and I got into real estate, we listened to "advice" from a lot of flashy people that knew how to talk their way into our bank accounts. What I like to call this, thanks to my friend Joanne, "Seminar bought and paid for." Listen to yourself and do your own research. Don't rely on others, solely. It is great to have a team of advisers but always trust in yourself and your instincts. Real Estate is NOT a get rich quick industry. Yes, there are very successful people out there that flip with the best and do very well for themselves. As for me and my houses, we will move slow and steady.

Have a Great One!

Crystal