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TAX CREDIT FOR HOME BUYERS
First-Time Home buyers (FTHBs): First-time home buyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, 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.
Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
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.
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.
OTHER NOTABLE POINTS
• Qualifying buyers may purchase a property with a maximum sale price of $800,000.
• A 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. So, if a first time home buyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.
• Better still, the tax credit is refundable, which means the home buyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time home buyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000.
You are Informed, what do you do now?!?!
First-Time Home buyers...Have Fun House Shopping!!
Current Owners, research the Home Stagers in your area. Get your house ready to sell, make it a "Buyer's Desire". Then contact a Realtor and you are ready to sell. Staging Works!! Before you know it you will be having fun House Shopping!
Dayton's Largest Full-Service Home Staging Firm, serving greater Dayton and Cincinnati since 2004
Make your Home a Buyer's Desire
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