Some people may still not know about the $ 8,000 tax credit for first time homebuyers and the $ 6,500 credit for the second time buyers but it’s still here until April 30, 2010.  We are happy to have the new year upon us but the deadline to sign a contract to buy a home is still April 30 and will get here sooner than we think.  Give us a couple weekends  of bad weather and it’ll be March before we know it and then we’ll be busy with spring type things and soon it will be April 15th and we’ll need to do our taxes and next thing you know we’re scrambing to find a home to buy the last couple weeks of April.  I encourage you, that if you’re in the market for a home under the tax credit don’t wait.  I know you read about the availability of homes on the market but a lot of them are not in excatly “live-in” condition.  If you think you’re going to buy a short sale or foreclosure between now and the end of April unless you’ve had it under contract for about 6 months right now it will not happen.  Note- I did not say it probably will not happen - I said it will not happen. You cannot at this stage get a contract on a bank owned or short sale and get it ratified by April 30, 2010.  You can talk to anybody that has tried to do it and you’ll find I’m telling you the truth. 

Remember, you second time buyers also get a tax credit also but only for $ 6,500.  Really, that’s a great deal.  I didn’t get a tax credit when I bought my last home.  This warning holds true for you in finding a home.  You need to start ASAP.  You also need to deal with selling you current home.  Don’t think it can’t be done either.  I know a guy who recently decided to put his home on the market and sold it in 10 days and then had to figure out where he was going to move because he heard all the things about the real estate market being slow so he didn’t really look- so get started and be persistent. 

Good luck in you home searches.

As I write this I am surprised at the sometimes lack of interest in the $ 1500 tax credit for energy efficiency improvements to your home.  Now I do realize that the credit is in some ways hard to understand but is anything the Federal Government easy to understand - i.e. read the tax code or a Medicare Benefit statement.  This is, however, something to take advantage of this year and in 2010.  Find a remodeling contractor who has an understanding of what is happening in this area, confirm that information with your accountant, and save 30% on a product for your home that qualifies.  It really is a great deal.  You get a 30% discount from your taxes, you get continuing energy savings on your elelctric, oil or other utlilty bill, and you enjoy a more comfortable home.  It ’s a win all around.  Good luck and go for those savings.

In reviewing the documentation on the energy tax credits for home improvements I would agree with many who talk about the confusing nature of the explanations.  We do need to be aware that despite the confusing nature of what products are available for the tax credit it is a 30% tac credit.  This amount of credit is worthy of the research involved in figuring out what it is involved.  On regular projects, i.e. replacement windows, doors, etc there is a cap of     $ 1500 and you only get the credit on the material itself.  Sounds pretty simple until you figure out that the windows you use in one location i.e. Florida that qualify there do not qualify in say Maryland where I live.  The same is true the other way in that the windows that qualify in Maryland may not qualify in Florida.  It is important to deal with a contractor who is knowledgeable about what products qualify and what documentation is needed when you get ready to fill out your 2009 taxes.  From what I’ve seen I do not expect your accountant to figure it out as he’s not into home improvements.  We have been working on giving people the documentation and saying take this to your accountant when you do your 2009 taxes and get the 30% tax credit.  Best wishes in taking advantage of a great opportunity in improving your home and getting a 30% tax credit to boot !!