The historic $787 billion economic stimulus package that was signed into law last week provides benefits for buyers and home owners.  Although we don't know the entirety of the package as relates to  loan modifications and the attempt at preventing foreclosures, here are a couple tax reliefs we are grateful for, and felt necessary.

HOME OWNERS TAKE NOTE!!!  Those making, "GREEN," improvements to their homes may see a tax credit, and these improvements include:  "energy efficient exterior doors, windows, extra insulation, heat pumps, furnaces, central air conditioners, and water heaters."  A homeowner can realize a tax advantage of 30% the cost of the improvement(s), up to a total of $1,500.  This is both great for your wallet, and our environment.

BUYERS TAKE NOTE!!!  Could you use an additional $8,000 in your pocket?  Those purchasing a home between January 1st, 2009 and December 1st, 2009, who are first-time buyers or have not owned a home in the preceding three years, and who live in the home without selling it for at least 3 years, likely qualify.  An individual buyer making less than $75,000, and a married couple jointly making less than $150,000, qualify for a tax benefit of 10% of the purchase price of the home, up to $8,000.  Those making over these limits up to $95,000 and $170,000 respectively, may qualify for a portion of the credit.  As always, please seek tax and financial advice from your trusted professionals in these disciplines.  For your convenience, the required Buyer Stimulus IRS Form 5405 for 2008 and 2009 is provided here, again to be verified with your CPA.

The housing market and economy overall is experiencing a necessary correction, and this is the time when wealth can be created, folks.  Unsure about investing your money into the stock market?  Think commodities like gold are over-valued at this point?  Do take a look at the possibility of investing in real estate.

Whether you are looking to purchase, sell, rent, or are unsure of your options in this dynamic market and time, we are here to help!  Please contact us to discuss your options, today. 

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Derek Bauer is an Associate Broker and Realtor® with Real Estate One, Michigan's Largest Real Estate company.  Derek is also the lead of the Derek Bauer's, "Door to Dreams Team."  As a Certified Distressed Property Expert, Derek is helping homeowners avoid, and even reverse, foreclosure.  Learn more at http://DoorToDreams.com.  Derek Bauer is licensed in Real Estate in the State of Michigan, is not an attorney, and can not and does not provide legal advice and/or counsel.