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Iowa City Real Estate: The Expanded Home Buyer Tax Credit Includes Repeat Buyers

By
Real Estate Broker/Owner with Cardinal Realty ~ 319-400-0268

The extended and expanded home buyer credit is no longer exclusively for first time home buyers and now includes what they're calling "repeat" buyers. This new and expanded credit went into effect on November 6, the day it was signed by President Obama.

The first time home buyer credit has had a positive impact on home sales in the Iowa City real estate market
and this new expansion of the homebuyer credit should impact homes sales in the higher priced "move up" category with a tax incentive of up to $6500 for repeat buyers. To be eligible for the up to $6500 homebuyer tax credit, you need to have resided in your home as a principal residence for 5 consecutive years in the last 8 years previous to buying the replacement home. Keep in mind, to qualify for the credit it is the closing date that counts. As we draw closer to April 30, then the accepted offer date will become an issue, but for the moment the closing date is what we need to focus on.


Also, I can't imagine I'm the only person to see this, but if you sold your home 3 years ago even if you lived there for 5 consecutive years, you may be eligible for the $8000 tax credit as a first time home buyer, so why would you apply for the lesser amount?
There probably aren't too many people in this postion anyway, just wondering that's all... (According to the IRS a first time home buyer is someone who has not owned a principal residence for 3 years prior to the date of purchase).

As I mentioned earlier, although the Iowa City real estate market is doing well when it comes to the sale of lower priced homes, we're hoping this will impact the home sales of higher priced homes as "move up" buyers upgrade their homes. Don't let that fact stop you if you're thinking of down grading your home though - You too are eligible for the tax credit!

Now let's take a look at the general eligibility requirements for the new expanded home buyer tax credit for both first time home buyers and repeat buyers.
First of all, you need to have an accepted offer on a home by April 30, 2010 and close by June 30, 2010.


There are a couple of changes in the expanded homebuyer tax credit compared to the tax credit that expired on November 30, 2009. The first is that the income levels of individuals able to claim the tax credit have risen. A single person may now earn up to $125,000 and married couples $225,000. There is also now a cap of $800,000 on the price of a home.


Now with all this talk about enactment date, accepted offers and cut off dates, I think it might be a good idea to stress the point that to qualify for the tax credit it's the closing date that counts. For more detailed information and FAQ's, visit www.Federalhousingtaxcredit.com.

 


Buying or Selling, more than likely you'd like to know our market is trending. Below are links  to market reports for Iowa City, Coralville and North Liberty for 2009. They include the yearly numbers along with the quarterly numbers. There was a lot to report with a whole year to look back on!


Iowa City Real Estate Market Report December 2009


Coralville Real Estate Market Report December 2009


North Liberty Real Estate Market Report December 2009

 

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Posted by

Denise Hamlin, Realtor®

Broker/Owner

CARDINAL Realty, Coralville IA 

Licensed to Sell Real Estate in the State of Iowa

 

Helping Happy Clients Make Smart Choices 

Iowa City Area Real Estate Services

 

Please remember that opinions expressed in my blog are just that - opinions - not fact
For legal or accounting advice please consult with a professional
Although the information provided is deemed reliable, it's not guaranteed

 

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