On November 6, 2009, President Obama signed the bill to extend the tax credit for First-time Homebuyers through JUNE 30, 2010!! The bill also opens up opportunities for existing homebuyers to receive credit on upgrading or downsizing a home, if selling their current home that they've lived in for 5 out of 8 consecutive years.
TAX CREDIT DETAILS
First Time Homebuyers, who have never owned a home or buyers who have not owned a home within the last three years, may be eligible for the $8,000 tax credit. The credit is 10% of the purchase price of the home (maximum sale price is $800,000), with a maximum available credit of $8,000. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
The new credit gives those who already own a residence a tax credit of $6,500 if you purchase a new home. This incentive is for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. This is a NEW CREDIT to the program and also goes through June 30, 2010.
WHAT ARE THE NEW DEADLINES?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
TAX CREDIT VS. TAX DEDUCTION
It's important to remember that the tax credit is just that....a tax credit. The benefit of a tax credit is that it's a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a First-time Homebuyer were to owe $8,000 in income taxes, and would qualify for a tax credit of $8,000, then they would owe nothing.
Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a First-time Homebuyer is eligible for a tax credit of $8,000, but is liable for $4,000 in income tax, he or she can still receive a check for the remaining $4,000.
As with any tax related questions, contact a Income Tax Professional for more information and how you qualify for the credit.
HIGHER INCOME CAPS
The amount of income someone can earn and qualify for the full amount of the credit has been increased:
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
MAXIMUM PURCHASE PRICE
Qualifying buyers may purchase a property with a maximum sale price of $800,000.
WHO TO CALL FOR MORE INFORMATION
Call a Real Estate Professional, such as myself - Chris Manisco, for all your Real Estate needs and questions. This new extended program not only helps First-time Homebuyers, but the credit of $6,500 has been extended to CURRENT HOMEBUYERS who have lived in their home for five consecutive years out of the last eight years!!! This is great news for all those people who have asked me, "Where's my tax credit?"
It's here, it's here!!! Hooray!!!
Chris Manisco
Re/Max Suburban in Wheaton, IL
(630) 868-6350
"Service With Respect, From Someone You Can Trust!"
RETURN TO MY WEBSITE: www.ChrisManisco.com
I proudly serve and sell Real Estate in the Northwest Suburbs of Chicago. If you are thinking about purchasing or selling your home in the communities of Wheaton, Glen Ellyn, St. Charles, Winfield, Geneva, Batavia, Naperville, Bloomingdale, Roselle, Elk Grove Village, Schaumburg, Bartlett, Carol Stream, Hanover Park, Streamwood, Elgin, South Elgin, and all of DuPage, Kane and Northwest Cook Counties, and more importantly, want to work with a local expert, contact me immediately. Disclaimer: All data and information provided on this blog is for informational purposes only. Chris Manisco makes no representations as to accuracy, completeness, correctness, suitability or validity of any information on this site and will not be liable for any errors, omissions or delays in information or any losses, injuries, or damages arising from its display or use.
RETURN TO www.ChrisManisco.com
Comments(0)