first time home buyer tax credit
The New Home Owner Tax Credit is Getting Extended!
March 13, 2010 by Eddie Baum · Leave a Comment
The first-time home buyers tax credit ($8000 for most of the people in the area), which was scheduled to expire November 30th, has been extended to include sales for contracts which are written by April 30, 2010 and closed prior to July 1, 2010. The credit has also been expanded to make more even more people eligible. Most urgently, new buyers are now eligible for up to a $6500 tax credit, assuming that they have been owners for at least five years.
This tax credit will be expiring just as the market tends to get hot. As a result, we should see a speeding-up of the spring market, as new buyers rush to capitalize on the tax credit. If you plan to list your house this spring- act fast to be sure you can take advantage of this opportunity. It\’d be a shame to miss out on this one-time-only rush for homes.
Homebuyer Tax Credit Basics
* Tax Credit: Equal to 10% of the sales price up to a maximum of $8000 for first-time home buyers/ $6500 for move-up buyers.
* First-Time Home buyer: Individuals who have not owned a home for the past three years.
* Move-Up Buyer: People who have lived in their current home for 5 of the past 8 years.
* Income Restrictions: Individuals with an adjusted gross income up to $125,000/ $225,000 if filing jointly. The credits are phased out for people making between $125,000 and $145,000 and joint filers with income between $225,000 and $245,000. For instance, an individual first-time home buyer with a salary of $135,000 would qualify for up to a $4000 tax credit (half of $8000).
* Eligible Properties: Any condo, townhome or single-family home to be used as a primary residence with a maximum sales price of $800,000.
* Deadline: Contracts must be written by April 30, 2010 and closed by July 1, 2010.
Eddie Baum owns a blog about the coolest Arlington Condos, especially Courthouse condos and Clarendon condos
