Now You Have Thousands of Reasons to Buy a House
The Federal Housing Tax Credit has been extended and expanded. I'll explain it here. If you have further questions, give me a call.
$8000.00 first-time home buyer tax credit
•· First-time home buyers qualify for $8000.00 if they have not owned a principle residence during the 3 years prior to the purchase.
•· The tax credit does not have to be repaid if you live in the house for 3 years.
•· The tax credit equals 10% of the home purchase up to $8000.00.
•· The purchase price of the home cannot exceed $800,000.00.
•· The sale has to be completed by April 30, 2010. A binding sales agreement that is signed by April 30, 2010 and the purchase completed by June 30, 2010 will qualify.
•· To receive the full credit, the income limit for single taxpayers is $125,000 and $225.000 for married couples.
$6500.00 move-up or repeat buyer tax credit
•· To claim the tax credit, you must have owned and lived in the home for 5 consecutive years out of the previous 8 years.
•· The tax credit does not have to be repaid if you live in the house for 3 years.
•· The tax credit equals 10% of the home purchase up to $6500.00.
•· The purchase price of the home cannot exceed $800,000.00.
•· The sale has to be completed by April 30, 2010. A binding sales agreement that is signed by April 30, 2010 and the purchase completed by June 30, 2010 will qualify.
•· To receive the full credit, the income limit for single taxpayers is $125,000 and $225.000 for married couples.
The tax credit will reduce your federal income taxes for the year. If you do not owe that much in taxes, Uncle Sam will send you a check for the difference.
Wayne B. Pruner is a Realtor® at Oregon First, who works in the Portland and Tigard, Oregon area. He is ready to help you with all your real estate needs and he is also a licensed contractor. Wayne knows houses. His phone number is 503-891-0795. Here are links to his real estate website and his real estate blog.
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