Changes to the Tax Credit

The Pescatore/Avrit Team is excited to let you know about the changes to the Tax Credit! As many of you probably know, the government has decided to extend the Homebuyers Tax Credit! YAY! The dynamics of the new tax credit extension has changed somewhat.  Here is what we know about it...call us if you have any questions...

1.  The tax credit is is now available to move-up buyers as well as 1st time home buyers.

2.  Now extended to homes purchased after November 6, 2009 and before May 1, 2010.  However, home purchases subject to a binding sales contract signed by April 30, 2010 will qualify for the tax credit provided closing occurs prior to July 1, 2010.

3.  Refundable tax credit of up to $8,000 for first-time buyers (must not have owned a home within the last three years)

4. Move-up buyers who have owned and lived in the same home for at least five of the last eight years are eligible for a tax credit of up to $6,500

5. The maximum income to qualify for the tax credit has been increased to $225,000 for married couples filing a joint return and $125,000 for those who file single or head of household.  Married couples who earn between $225,000 and $245,000 or single / head of household taxpayers who earn between $125,000 and $145,000 are eligible to receive a partial tax credit.  The credit is not available to taxpayers who earn more than these income limits.

6. For military homebuyers serving on qualified official extended duty service outside the U.S. for at least 90 days after December  31, 2008 and before May 1, 2010, the deadline for the tax credit is extended an additional year (through May 1, 2011)

7.  To qualify for the tax credit, the purchase price must be less than $800,000. All homes qualify including newly constructed or re-sale and single family detached, townhomes or condominiums.  However, the home must be used as the customers primary residence as second homes and investment properties do not qualify.

8. All U.S. citizens who file taxes are eligible to participate in the program.

9.. The tax credit is a true credit and does not have to be re-paid unless thecustomer sells or stops using the home as their primary residence within 3 years after the purchase.

As you can see, this is great news!