$3.9 Billion... and Counting

If you follow the real estate industry in any fashion, you probably know that last year the Federal government introduced a $7,500 tax credit for first-time home buyers and increased it to $8,000 for those who purchase their first home this year prior to December 1st.

According to the government's Interim Results of the 2009 Filing Season, $3.9 billion in first-time home buyer tax credits have been claimed on more than 567,000 tax returns. Incidentally, if you bought a your first home anytime after April 8, 2008 and have not claimed the tax credit, I'd recommend that you contact an accountant to determine you eligibility and file an amended return to get this free money. (you can also click here for eligibility requirements)

It will be interesting to see how these figures grow this year and into next year's tax season, as first-time home buyers account for roughly 40 percent of all homes sold. Last year there were 4.9 million homes sold and this year will be less but still probably north of 4 million. Not every first-time home buyers will be eligible for the tax credits -- due to the tax credits' income thresholds and because it applies only for purchases made in the fist 11 months of 2009 and roughly last 9 months of 2008.

But we can assume that since most first-time home buyers are under the income thresholds ($95K for individuals and $150K for joint filers) and will time their closings to occur prior to December 1st, it is easy to assume that the $3.9 billion in claimed tax credits is only the beginning.

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