HOME BUYER TAX CREDIT EXTENDED TO FIRST TIME HOME BUYERS AND EXISTING HOME OWNERS PEORIA, ARIZONA

President Obama signed into law the extension for first time home buyer and existing home owner tax credit. The National Association of Realtors and other leading organizations lobbied for this law to jump start the real estate industry after a heavy hit for the past two years. The real estate industry got us into this slump and it has to get us out of this rut. I know many people will be in position to purchase homes at the start of the year here in Surprise, Arizona. We are coming up to the busiest season in real estate and I am ready for it.

A person is considered a first time home buyer when he/she has not owned a primary home in the past three years. They are eligible to receive up to an $8,000 home buyer tax credit or 10% of the value of the home which ever is less. The home must be a principal residence. The credit is refundable even if one does not owe taxes. Many people have taken full advantage of this tax credit since it has been in place.

Existing home owners who have lived in their primary house for five years or more will be eligible for a $6,500 home buyer tax credit. There are income limits to include $125,000 for single filers and $225,000 for joint filers. These are exactly the same for first time home buyers in the above paragraph. The credit will be gradually phased out for single people who make over $145,00 and married couples that make over $245,000.

This bill has been extended with the following important dates:

1. All contracts must be dated by April 30th, 2010
2. All deals must close on or before June 30th, 2010 to receive the tax credit

It is very easy to obtain your tax credit. First, you can amend your 2009 tax file or you can file it in 2010 tax return. Yes, you will need to send proof that you purchased the house. I would suggest sending in a copy of ones mortgage statement and HUD1 statement for proper documentation.

The Treasury Department has detected a lot of fraud regarding people falsifying documents to receive the tax credit. Personally, it is not worth the amount of money to create a fraud when it comes to the tax credit. I would recommend to take the high road because they will always catch you in the end.

The Real Estate and Beyond Team is ready to assist home buyers to get into their house to receive the tax credits.

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