$8,000/$6,500 Tax Credit
A message from Tammy Reynolds:
With home values having decreased 20% to 30%, lots of homes to choose from and mortgage interest rates still very attractive, it is hard to believe buyers could have it any better. Well, they just did!!!
In February 2009, President Obama signed into law the American REcovery and REinvestment Act of 2009, which granted an $8,000 tax credit to qualified first-time buyers purchasing a residence this year. This credit has been extended into the year 2010 and adds a $6,500 tax credit for buyer's who are purchasing a home worth more than the home they are selling (moving up).
Before interest rates rise further, now is the time to get serious. The opportunity to own your home has become even more affordable!!!
I look forward to talking with you soon.
Sincerely,
Tammy Reynolds, Realtor
New Law: H.R. 3548, "Worker, Homeownership, and Business Assistance Act of 2009,"
Both the U.S. Senate and House of Representatives have passed legislation that includes an extension and expansion of the homebuyer tax credit. President Obama signed the legislation, H.R. 3548, "Worker, Homeownership, and Business Assistance Act of 2009," on Friday, November 6.
H.R. 3548 provides both for the extension of the first-time homebuyer tax credit and expansion of it to qualified non-first-time buyers as well. A few of the provisions of this new law include the following:
(1) Both the $8,000 first-time homebuyer tax credit and the $6,500 tax credit for “move-up” buyers (see 4 below) would sunset on April 30, 2010. However, purchasers who have binding contracts as of April 30, 2010 (before May 1, 2010), would still qualify for the credit as long as they complete the transaction within 60 days (or June 30, 2010).
(2) The amendment establishes income limits of $125,000 for an individual or $225,000 for a couple for both credits.
(3) The cost of the home being purchased cannot exceed $800,000 for both categories in order to be eligible for the credit.
(4) “Move up” buyers (an individual or his/her spouse, if married) are qualified if he/she “has owned and used the same residence as such individual's principal residence for any 5-consecutive-year period during the 8-year period ending on the date of the purchase of a subsequent principal residence.”
For purchases made in 2010, taxpayers would be able to claim the credit on their 2009 income tax return. Homebuyers would not have to repay the credit, provided the home remains their principal residence for 36 months after the purchase date. However, this recapture provision would not apply in the case of a member of the Armed Forces, military intelligence or Foreign Service who is on qualified official extended duty. In addition, members of the military who have been deployed overseas for 90 days or more in 2008 or 2009 would have until April 30, 2011, to claim the homebuyer tax credit.
The amendment also includes anti-fraud language that gives the IRS the authority to do greater oversight during the processing of the return rather than waiting for an audit situation. The amendment requires the taxpayer claiming the credit to be 18 or older and requires a HUD-1 settlement statement to be attached when claiming the credit.
For additional information and the full text of this law, click here.
For frequently-asked questions, go to http://www.federalhousingtaxcredit.com/ from the National Association of Home Builders.
For the IRS News Release on this new law, click here.
You will need to apply for your tax credit on your Federal Income Tax Return and after your income taxes are paid you receive the difference, up to $8,000! Talk to your CPA for more information! I know a good one, just ask!
What types of home qualify for the tax credit? Mobile homes, Townhouses, Stick-built, Houseboats (except Shasta Lake) and any home that is your principal residence!
Contact me now for more information or to view homes that qualify!
