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The much-anticipated extension recently passed regarding the Home Buying Tax Credit portion of the Federal Stimulus Package brings with it a host of changes, additions and new deadlines.
In an effort to help consumers just like you better understand what all these changes can mean for you and your family, We're happy to provide this FREE REPORT! We encourage you to read through it carefully, forward to your friends and family members who may be thinking of purchasing a home, and of course, call us with any additional questions you might have!
What YOU need to know about the Tax Credit Extension:
1. Amount of credits: The tax credit of up to 10% of the home value and a cap of $8,000 is still available to NEW home buyers for any contract in effect no later than April 30, 2010 and closes no later than June 30, 2010. In addition, CURRENT home owners who wish to purchase a new home are now eligible for a tax credit of up to $6,500 if they’ve owned and occupied a primary residence for at least five of the last eight consecutive years.
2. Income caps are now higher! Single tax filers who earn up to $125,000 are eligible for the full amount of the credit, those who earn up to $145,000 may be eligible for partial credit. Single tax filers who earn more than $145,000 are ineligible. Joint filers who earn up to $225,000 are eligible for a full credit, with those who earn up to $245,000 possibly eligible for a partial credit. Those earning above the $245,000 are ineligible.
3. Eligibility factors: For the first time home buyer credit, filers may not have had an interest in a principal residence for three full years prior to purchase. Current homeowners must have owned and occupied a primary residence for at least five consecutive years of the eight year period ending on the date of purchase of a new home as a principal residence. Please note that homes with a purchase price of more than $800,000 are ineligible as well.
4. Tax credit, not a tax deduction: It’s important to note that this incentive is indeed a credit, which means rather than a reduction of your tax liability that would save you a portion on your taxes, the tax credit is a dollar for dollar tax reduction.
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