The first time home buyers tax credit will be coming to an end in less than a month, assuming it’s not extended again. The question many people may be wondering as its final day approaches is whether or not it’s actually spurring more Floridians to invest in properly like Miami Beach real estate. If the IRS’ recently released numbers are anything to go by, it may be doing much better than originally thought.
Per the IRS, over 120,000 Floridians have managed to claim almost $1 billion via the tax credit, that’s quite a staggering number. As a refresher, first time buyers receive an $8,000 credit while existing homeowners who may be seeking new Miami Beach condos to use as their primary residence can still qualify but receive $6,500 instead. Interestingly, Florida is in third place when it comes to the total amount of credits at $936 million, right behind Texas and California.
Keep in mind that if you plan on purchasing Miami Beach real estate sometime this month and wish to qualify, you must file a 5405 form as well as provide documented proof of a property purchase. Only time will tell whether home sales will sustain once the tax credit ends but at least we know that for the time being it’s doing its job quite effectively.