Most people are familiar with the new stimulus plan that helps many get tax rebates for buying a condo. The incentive is centered on first-time condo buyers and a lot of people automatically assume they aren’t eligible because they have owned a condo in the past. This incentive shouldn’t be dismissed so quickly. It is worth as much as $8,000 during the calendar year of 2009 and is a great reason to consider entering or re-entering the Minneapolis condo buying market. Yes, that’s right “re-entering” the market.
Three Year Rule
If you have not owned a Minneapolis condo in the past three years, for tax purposes you are considered a first-time condo buyer and are still eligible for the tax credit. This, however, includes you and your spouse if you are married so neither of you can have purchased a condo in the last three years.
Principle Residence Rule
Even if you have owned a condo in the last couple of years, if it has not been your primary residence, you may still be eligible for the tax break. This means that if you own property that you use as rental or other investment real estate such as flipping or reselling, you may still be able to get the tax incentive if you purchase a new condo for you and your family to actually live in.
The new stimulus plan rules may be confusing but a qualified real estate professional can guide you through the possibilities.
If you are entitled to the tax rebate, 2009 should be the year you buy your new condo. The tax rebate on a new condo purchase is only good for the year.
If you purchased a Minneapolis condo any time during the 2009 calendar year and didn’t know you might be entitled to the rebate, now is the time to check into it.
If you have any questions regarding the new stimulus tax breaks for first-time condo buyers, please give me a call at 612-877-1676 or email me at ben@cityoflofts.com. I’d be happy to help.
