The 2009 Homebuyer’s tax credit was open to first time buyer’s only. The extension of that
program, plus the addition of a benefit for repeat homebuyers has the real estate market buzzing!
Homebuyer Tax Credit Program:
• Tax Credit for First Time Buyers:
Ten percent of the purchase price of a primary residence, up to a maximum of $8,000 for first-time homebuyers who are defined as people who have not owned a home in the previous three years.
• Tax Credit for Repeat Buyers:
$6,500 for repeat buyers. Repeat buyers must have owned their current home at least five years. The credit cannot be used for houses costing more than $800,000.
• Date of Purchase:
Homes must be purchased between December 1, 2009 and May 1, 2010.
• Deadline for qualifying:
Purchase agreements must be signed by April 30, 2010, and closings must be final by June 30, 2010.
• Military deadline:
The deadline is extended by one year (to April 30, 2011) for members of the military who have served outside the U.S. for at least 90 days from Jan. 1, 2009 to May 1, 2010.
• Income limits:
Individuals with annual incomes up to $125,000 and joint filers with incomes up to $225,000 qualify for the full credit. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.
• How to apply:
Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment. Taxpayers who want immediate refunds can amend their tax returns for 2008 to claim the credit. Written by Michelle Hodges at Axiom financial
If you have any other questions on buying or selling a home please feel free to call me.
Blake Rounkles @Northern Realty
801-589-2437