OR# ML-2912
WA#510-LO-35626
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Federal Housing Tax Credit
One of the best programs to come out of the Obama Stimulus Plan JUST GOT BETTER! Now, existing homeowners can qualify for a credit as well!
This is truly pennies from heaven and an incredible opportunity. The IRS will write you a check for a buying a home. Period. No Payback, nothing. You simply need to meet the income requirements and stay in the house for three years. For most buyers, having a check for thousands of dollars arrive after closing is like a dream come true. Many buyers have been able to make their goal of owning a reality because of the Federal Housing Tax Credit. No matter if you are buying your first home or your next one, the Housing Tax Credit will put you in a much better position after closing:
- Pay for appliances or home improvements and remodeling.
- Payoff debt - eliminate your car payment or credit cards.
- Put money back in their savings used for getting into their new home.
The rules are pretty simple...but the timeframe is short. You must be in contract to purchase a home by April 30th, 2010. Many people felt like the November 30th deadline snuck up on them, so don't wait to start exploring your options. Also, if you have a friend, colleague or family member who should be taking advantage of the tax credit, please encourage them to touch base with me - that's what I'm here for.
The Details:
$8,000 First-time Home Buyer Tax Credit at a Glance
- The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
- The tax credit does not have to be repaid.
- The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.
- The tax credit applies only to homes priced at $800,000 or less.
- The tax credit now applies to sales occurring before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
- Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance
- To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
- The tax credit does not have to be repaid.
- The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $6,500.
- The tax credit applies only to homes priced at $800,000 or less.
- The credit is available for homes purchased on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
- Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
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