The Home Buyers Tax Credit Is Getting Expanded!
The first-time home buyers tax credit ($8000 for most of the people in the area), which was scheduled to expire November 30th, has been extended to include sales for contracts which are written by April 30, 2010 and closed prior to July 1, 2010. The credit has also been expanded to make more even more people eligible. Most urgently, new buyers are now eligible for up to a $6500 tax credit, assuming that they have been owners for at least five years.
This tax credit is unfortunately set to expire at about the same time that the market annually speeds up. As it stands, we should see a speeding-up of the market, as would be springtime buyers rush to collect the tax credit. If you plan to list your house this spring- act fast to be sure you can take advantage of this opportunity. You don't want to miss out on this one-time-only rush for homes.
Homebuyer Tax Credit Basics
* Tax Credit: Equal to 10% of the sales price up to a maximum of $8000 for first-time home buyers/ $6500 for move-up buyers.
* First-Time Home buyer: Individuals who have not owned a home for the past three years.
* Move-Up Buyer: People who have lived in their current home for 5 of the past 8 years.
* Income Restrictions: Individuals with an adjusted gross income up to $125,000/ $225,000 if filing jointly. The credits are not an option for people making between $125,000 and $145,000 and joint filers with income between $225,000 and $245,000. For example, a single first-time home buyer with an income of $135,000 would qualify for as much as a $4000 tax credit.
* Eligible Properties: Any condo, townhome or single-family home to be used as a primary residence with a maximum sales price of $800,000.
* Deadline: Contracts must be written by April 30, 2010 and closed by July 1, 2010.
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