One local real estate agency is offering people the chance to learn about this year’s valuable federal tax credit for first-time home buyers in a free online Webinar they can watch wherever they have Internet access.

 "People won’t have to leave the comfort of their own home, or wherever they have computer access," said Jim Todd, general sales manager for Madison-based Coldwell Banker Success. "Our intent really is to provide education about the credit. Most people, quite frankly, don’t understand it."

Todd will offer the one-hour program at 7 p.m. Tuesday for up to 1,000 participants. He will focus on the basics of the tax credit, worth up to $8,000 and good on purchases through Nov. 30 — as well as explain other potential buyer incentives, such as an abundant, affordable housing inventory and the low interest rates available now.

Participants will be able to hear the discussion, and speak to or e-mail questions to the presenters in the program’s second half-hour. An accountant will be on hand to answer questions and one overall message will be about the need for buyers to act relatively quickly.

"We want buyers to understand that the window of opportunity is closing fast," Todd said. "When you take into consideration looking for the home, the offer and the closing process, it really only gives you a couple months to look. I’m sure there will be a last-minute frenzy of people trying to close by midnight Nov. 30."

John Deininger, executive vice president of the Realtor Association of South Central Wisconsin, likes the idea of online seminars, especially for potential first-time buyers, who typically are younger and are more accustomed to using the Internet.

"If they’re finding ways to communicate that especially the young buyer likes, then I applaud their efforts for being creative," he said. "It’s kind of neat to see the new technology being used. People like to be communicated with in different ways."

To sign up for the Webinar, go to www.cbsuccessrealty.com and click on the Webinar announcement.

Coldwell Banker Success has more than 100 agents working out of the main office in Madison and five other offices serving Dane, Rock and surrounding counties.

ABOUT THE TAX CREDIT

In 2009, qualifying taxpayers who buy their first home before Dec. 1 can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main residence for 36 months after the purchase date.

They can claim 10 percent of the purchase price, or up to $8,000, or $4,000 for married individuals filing separately. The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers. The maximum credit is $8,000, and the credit is claimed using Form 5405.

Because the April 15 tax deadline has passed, taxpayers who buy after that date must file an amended return with Form 1040X to get the credit this year. Otherwise they can file it with next year’s taxes.

In addition, for people with FHA mortgage loans, new rules released by the government in late May allow them to get the credit at the closing through lenders.

For first-time home buyers who bought in 2008, the maximum credit is $7,500 and it must be paid back, interest-free, over 15 years.

A “first-time home buyer” is defined by the Internal Revenue Service as “any individual (and spouse, if married) who had no present ownership interest in a qualifying principal residence during the three-year period ending on the date of purchase of the principal residence for which a first-time home-buyer credit is being claimed.”

The credit was approved in mid-February as part of the $787 billion federal stimulus bill.
For more detailed information, go to www.irs.gov/taxtopics/tc611.html.