Home Buyer Tax Credit Summary
As Nina and I work with our Seattle area clients, the extended home buyer tax credit needs to be evaluated as a possible means of assisting our clients as they make a purchase. Let’s take a few minutes and review the basic elements of the new extended home buyer tax credit programs for first time home buyers as well as folks who have lived in their current home 5 out of the last 8 years. Before we get started, we would like to thank www.WAHomeowners.com for the creation of the graphics and video below, and their encouragement for us to share their work with our friends and clients. The program is outlined below, which can also be seen as a short video at the end of this summary:
The home buyer tax credit is extended until April 30th 2010. Contracts must be signed by that date with a following 60 days to close on the transaction (June 30, 2010).
The home buyer tax credit covers condos, co-ops, and houseboats as well as regular homes.
The purchase must be on a home bought for less than $800,000.
Home buyer tax credit for first time home buyers:
You can get up to 10% of the purchase price up to a maximum of $8,000.
You can earn up to $125,000 as an individual and up to $225,000 if married and filing jointly and still qualify for the full home buyer tax credit. We recommend you see your tax professional for other credit possibilities.
The $8,000 comes right off your taxes so it is more like CASH than a credit. SAY WHAT? BECAUSE, if you owe less than $8,000 in taxes you will get the difference in CASH.
To qualify as a first time home buyer you must not have owned a home for the past 3 years.
The home buyer tax credit also covers some current homeowners:
To qualify for this part of the program you must have lived in a home for 5 years during the past 8 years.
To receive the home buyer tax credit you can move up or downsize to a less expensive house.
You also can rent your current home and buy a new primary residence.
The home buyer tax credit for existing homeowners is $6,500.
The above outline of basic points and illustrations for the home buyer tax credit was summarized with encouragement to share from the following video information produced by WAHomeowners.com. It is a good place to find other helpful programs and resources. Be sure to contact Frank or Nina for the guidance you need in making your next real estate decision.
Call Frank Kliewer at 206.794.9900 or Nina Cross at 206.406.3840 to discuss your real estate decisions and receive assistance from Realtors® with integrity and numerous years of experience. References on request.
On the web at FranksList.com Please pass this information on to anyone you think might find it useful. Thank you.
Click on the video below for a summary of this material:
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