Public Awareness Committee launches campaign

Members of the Public Awareness Committee, comprised of some Sheboygan County Realtors and lenders, are on a crusade.

Their mission is to promote the First-Time Home Buyer Tax Credit, of up to $8,000, available on principal residences purchased on or after Jan. 1, 2009 and before Dec. 1, 2009. This credit is made possible through passage of the American Recovery and Reinvestment Act of 2009.

According to real-estate broker Gail Kapellen, co-owner of Pleasant View Realty, Plymouth, and a member of the Public Awareness Committee, officials of five Sheboygan Company realty firms began meeting in June to determine methods to get the word out about the First-Time Home Buy Tax Credit, so that those eligible would not miss out on the opportunity to become home owners and save money in the process.

Since then, the committee was formed and has been meeting at 9 a.m. each Wednesday at the Sheboygan County Board of Realtors office in the M&I Bank on Taylor Drive in Sheboygan.

“We tried to involve all real-estate companies in the county,” Kapellen noted. “This is a fantastic opportunity to engage the entire real-estate community in working together to get the good news out to firsttime buyers or others thinking of making a move,” she added.

“This is a good time to buy a house, not only for first-time buyers but for others as well. There has never been a better time to buy a house, with a huge selection of homes available and record low interest rates.”

Public Awareness Committee members have launched initiatives to promote the tax credit. One of these was a Pre-Qualification Weekend, held on Aug. 7 and 8.

Another is Sheboygan County’s Largest Open-House Weekend, slated for Saturday, Aug. 15 and Sunday, Aug. 16. On those days, all Sheboygan County Realtors will be sponsoring some open houses.

Also, many Sheboygan County real estate companies and lending agencies are displaying banners on their buildings or properties, and attaching notices on home-sale signs, informing prospective first-time buyers about the tax credit of up to $8,000.

The signs read, “Ask your Realtor or lender about this tax credit,” and add, “Must meet qualifications and close by Nov. 30, 2009.”

The Web site listed on the signs for further information is www.wisconsinhomebuyer.org

The tax credit is for first-time homebuyers only, meaning someone who has not owed a principal residence during the three-year period, prior to the purchase.

The tax credit does not have to be repaid and is equal to 10 percent of the home’s purchase price, up to a maximum of $8,000.

Any home purchased for $80,000 or more qualifies for the full $8,000 amount. If the house costs less than $80,000, the credit would be 10 percent of the cost.

Single taxpayers with incomes up to $75,000 and married couples with joint incomes up to $150,000 qualify for the full tax credit.

Those with higher incomes qualify for lesser amounts, based upon their specific incomes and a formula applied.

The tax credit is a true credit, meaning that it can be claimed and does not have to be repaid. Typically, this involves the government sending the taxpayer a check for a portion or even the entire amount of the refundable tax credit.

A refundable credit means that if you pay less than $8,000 in federal income taxes, the government will write you a check for the difference. For example, if you qualify for the full $8,000 tax credit and owe $5,000 in federal income taxes, you would pay nothing to the IRS for the taxes and receive a check for $3,000 from the government.

If you are due to receive a $1,000 tax refund on your federal income taxes and qualify for the full $8,000 First-Time Home Buyer Tax Credit, your refund would increase to $9,000 ($1,000 plus the $8,000 from the home-buyer tax credit).

All homes, whether single-family, town homes or condominium apartments qualify, provided the home will be used as a principal residence, and the buyer has not owned a principal residence in the prior three years. This also includes newly constructed homes.

For further information, consult with your tax advisor or accountant and/or check the questions-and-answers segment of the www.wisconsinhomebuyer.org Web site.