Great Interest Rates, Expansive Inventory of Homes... and an EXPANDED Tax Credit Too!
Note: This is intended to provide an overview only - for specific information or individual concerns, please contact your lawyer, accountant and/or financial advisor.
The federal income tax credit for homebuyers has been extended and expanded to now include homeowners who wish to "move on" after 5 years of living in their current property, as well as first-time homebuyers.
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First-time homebuyers, or those who have not owned in the last three years, can receive up to an $8,000 tax credit
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Homeowners who have lived in a current home consecutively for 5 of the past 8 years can receive up to a $6,500 tax credit
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There may be no future extensions, so all qualified homebuyers are urged to act and have a written, binding contract by April 30, 2010 (close by June 30, 2010)
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Income limits are now $125,000 for singles, $225,000 for married couples with a $20,000 phase-out of the credit for both.
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According to The National Association of Realtors News Release, dated 11/5/09, an estimated $22 billion has already been added to the general economy resulting from the bill and approximately 2 million people will utilize the tax credit in 2009.
The following chart provides more information:
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Feature For First-Time Homebuyers
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For Current Qualifying Homeowners
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Amount of Credit
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$8,000 ($4,000) married filing separate) $6,500 ($3,250 married filing separate)
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Eligibility
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May not have had an interest in a principal residence for 3 years prior to purchase Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
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Termination of Credit
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Purchases after April 30, 2010 Purchases after April 30, 2010
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Binding Contract Rule
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So long as a written binding contract to purchase is in effect on April 30, 2010 the purchaser will have until June 30, 2010 to close So long as a written binding contract to purchase is in effect on April 30, 2010 the purchaser will have until June 30, 2010 to close
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Income Limits
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$125,000 - Single, $225,000 - Married, Additional $20,000 Phase Out $125,000 - Single,
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Limitation on Cost of Home Purchased
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$800,000
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Purchase Made by a Dependent
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Ineligible
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Additional Requirements
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Purchaser must attach documentation of purchase to tax return Purchaser must attach documentation of purchase to tax return
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Information courtesy of http://www.realtor.org and http://www.whitehouse.gov
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