By Clytie Bunyan, The Oklahoman, Oklahoma City
Feb. 28--There's lots of talk out of Washington about failed efforts to help the housing industry, but people who can afford to purchase a home still can take advantage of some tax benefits.
In Oklahoma, that's an incentive worth considering. After all, home values here are the best in the nation -- up 3.53 percent in the last quarter. And builders and home sellers say the market is good -- houses aren't sitting as long as they did in 2008, for example.
The extended first-time homebuyer credit offered last year ends on April 30. The IRS says a transaction on a home must close by June 30 to qualify to get back up to $8,000.
When Congress expanded the program, longtime residents were included. So taxpayers who have lived in a home for at least five consecutive years may also qualify to get back up to $6,500 if they purchase a new principal residence -- "principal" being the key word here.
But be warned: Heavy documentation is required. In fact, homebuyers who claim the credit on their 2009 income tax aren't allowed to file electronically. The IRS says lack of required documentation will slow down the process and delay a refund.
Another point to remember is that the IRS will expect the credit to be repaid, IF "the home ceases to be the taxpayer's main residence within a three-year period following the purchase."
Potential first-time buyers also should consider another incentive: Interest rates are still low -- about 5.05 percent on a 30-year mortgage -- but there's a concern about whether rates will rise.
So for those still on the fence, there's just 61 days left to hunt for a house and sign a contract. Don't assume there'll be another extension.
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