Tax Credits for Home Buyers
First Time Home Buyer Tax Credit Extended and Expanded
On November 6, President Obama signed legislation for a one-time extension of the $8,000 tax credit to first-time homebuyers, and a a one-time $6,500 tax credit for move up homebuyers, offering you money for home repairs and the ability to buy your first home. This tax credit is available only for a short time and is not likely to be offered again.
To qualify for the $8.000 tax credit, you must sign a contract on a home before April 30, 2010, and close on that home by June 30, 2010. And now the income limits qualify for a tax credit are far more generous than under the previous law. For single homebuyers, the credits now phase out between $125,000 and $145,000; for married couples, the range is $225,000 to $245,000.
Consult your professional tax advisor for more specific tax calculations. With interest rates at all-time lows and an $8,000 federal tax credit for first-time buyers, there truly isn’t a better time to buy a home. Lower home prices mean your mortgage payment may be less than the rent you currently pay. In most areas, housing prices have reached all-time lows, so now is the time to act.
The legislation that President Obama signed on November 6th also included a one-time $6,500 tax credit for move up homebuyers. To qualify for the $6,500 tax credit, you must have lived in your current home for five consecutive years out of the last eight. In addition, you must sign a contract on a home before April 30, 2010, and close on that home by June 30, 2010. Income limits to qualify for a tax credit are generous. For single homebuyers, the credits now phase out between $125,000 and $145,000; for married couples, the range is $225,000 to $245,000. Consult your professional tax advisor for more specific tax calculations.
In addition, qualified military service members who are ordered on a period of official extended duty will be able to apply the tax credit to sales with a sales contract in place on or before April 30, 2011 and closed by June 30, 2011.
The best news is that if you are a first time home buyer, thinking about buying a home now, this is a great time to buy, but you must act quickly to take advantage of this tax credit before it’s gone.
More information about the tax credit is available at the following resource link pages -
* Seek advice from a professional tax advisor for specific tax calculations and timing for claiming the tax credit.
