A Great Deal in Real Estate is Now Better
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.
First-time homebuyers, or those who have not owned in the last three years, can receive up to an $8,000 tax credit
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
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)
Income limits are now $125,000 for singles, $225,000 for married couples with a $20,000 phase-out of the credit for both.
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:
| Feature | For First-Time Homebuyers | For Current Qualifying Homeowners |
| Amount of Credit | $8,000 ($4,000) married filing separate) | $6,500 ($3,250 married filing separate) |
| Eligibility | 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 |
| Termination of Credit | Purchases after April 30, 2010 | Purchases after April 30, 2010 |
| Binding Contract Rule | 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 |
| Income Limits | $125,000 – Single$225,000 – Married
Additional $20,000 Phase Out |
$125,000 – Single$225,000 – Married
Additional $20,000 Phase Out |
| Limitation on Cost of Home Purchased | $800,000 | $800,000 |
|
Purchase Made by a Dependent
|
Ineligible | Ineligible |
| Additional Requirements | Purchaser must attach documentation of purchase to tax return | Purchaser must attach documentation of purchase to tax return |
Information courtesy of http://www.realtor.org and http://www.whitehouse.gov
Or call Melissa Conrad, Realtor (772) 240-2589
Note: This is intended to provide an overview only – for specific information or individual concerns, please contact your lawyer, accountant and/or financial advisor.
You must log in to post a comment.