Congress Extends Home Buyer Tax Credit!
Posted by Paul Morales | Visited 189 times, 1 so far today | Leave A Comment »
As part of its plan to boost the residential housing market and to stimulate the overall economy in general, Congress has passed new legislation that:
- Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
- Expands the credit to grant a $6,500 credit to current home owners purchasing a new or existing home between November 6, 2009 and April 30, 2010.
- Requires the home being purchased to be subject to a written and binding purchase agreement before April 30, 2010. It allows for the sale to be completed up to and until July 1, 2010.
Listed below is more information about how this news can help home buyers chase down the American dream.
Who’s Qualified for the Tax Credit?
- First-time home buyers who purchase homes between November 6, 2009 and April 30, 2010.
- Current home owners purchasing a home between November 6, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
To qualify as a “first-time home buyer” the purchaser(s) may not have owned a residence during the three years prior to the purchase.
If you purchased a home between January 1, 2009 and the date the bill is signed into law by President Obama, the original 2009 First-Time Home Buyer Tax Credit applies to you.
What type Properties Are Eligible for the Tax Credit?
The credit may be applied to primary residences such as single-family homes, condos, townhomes, and co-ops but only on homes purchased for $800,000 or less.
Buyer Income Limitations:
Buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.
These income limits have changed from the original 2009 First-Time Home Buyer Tax Credit limits.
Some buyers who’s incomes exceed these limits may still be eligible for the credit but every qualified home buyer’s tax credit is determined by two factors:
- The price of the home.
- The buyer’s income.
The credit decreases for single buyers who earn between $125,000 and $145,000 and between $225,000 and $245,000 for home buyers who file their taxes jointly. The amount of the tax credit decreases as the buyer’s income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit. Additionally, for all qualified purchases, the full amount of the credit will be need to be repaid if the home is sold within 3 years from the date of purchase but does not need to be repaid if the buyer occupies the home for more than 3 years.
