With all the changes and updates to the First-Time Home Buyers and the Existing Homeowners tax credits all the information can become confusing to homeowners and new purchasers alike. But everyone wants to know if they will qualify and what the stipulations are for these credits.
First-Time Home Buyers:
First of all with the tax credit for first-timers the amount hasn't changed. It's still $8,000. or $4,000. for married couples filing seperately.
The effective date remained the same, Novemeber 7, 2009.
The termination of the tax credit has been extended however. You now have until April 30, 2010 and as long as your contract is dated on or before this date and you close by July 1, 2010 then you will still be eligible for the tax credit.
The income limits have been increased. You can now make up to $125,000.00 for a single person or up to $225,000.00 for a married couple.
There is now a limit on the sales price however of $800,000.00
This tax credit does not apply for a purchase by a dependant.
And you are now required to attach documentation of purchase to your tax return.
Existing Homeowner Credit:
The mount for the existing homeowner hasn't changed. You will receive $6,500. or $3,250. for a married couple filing separately.
You are eligible for the tax credit so long as you have used the home you are selling as a principle residence consecutively for 5 of the previous 8 years.
The effective date remained the same, Novemeber 7, 2009.
The termination of the tax credit has been extended however. You now have until April 30, 2010 and as long as your contract is dated on or before this date and you close by July 1, 2010 then you will still be eligible for the tax credit.
The income limits have been increased. You can now make up to $125,000.00 for a single person or up to $225,000.00 for a married couple.
There is now a limit on the sales price however of $800,000.00
This tax credit does not apply for a purchase by a dependant.
And you are now required to attach documentation of purchase to your tax return.
*The tax credit will reduce your total tax bill if you owe taxes. Otherwise if you do not owe any taxes then your tax refund will increase dollar for dollar of the amount of the tax credit you qualify for depending on if you are a fire-timer or existing homeowner or if you are married and filing separately.
*You can also file an amendment to your 2008 tax return in order to apply the credit towards that tax return. Or you can file it on your tax return for 2009, which is due on April 15, 2010 or you may choose to file it on your 2010 tax return.
So if you think you qualify for this tax credit please contact me so we can discuss the details and see if you can take advantage of this credit before time runs out. Because if you are thinking of buying or selling and you fit the above requirements why wait, take advantage of the savings today!
Erin Shawver, REALTOR
678-549-2800
erin.shawver@powersoldit.com
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