Lately the news about the extension of the $8,000 First Time Homebuyer Tax Credit and it's expanded reach to all home buyers is getting a lot of attention and questions. President Obama has approved the Housing Tax Credit Expansion and Extension. I've gotten a few questions about it over the last few days so thought I'd set out the details of the bill.
Under the American Recovery and Reinvestment Act of 2009, qualified first-time homebuyers may receive a tax credit up to $8,000. President Obama’s bill extends this program into 2010.
• Eligible for homes with purchase agreements signed by April 30, 2010, and closed by June 30, 2010
• Available to first-time homebuyers who have not owned a home during the past three years
• Credit amount up to 10% of the home’s value, not to exceed $8,000
• Buyers qualified for full tax credit are single taxpayers with incomes up to $125,000 and joint filers with incomes up to $225,000
President Obama’s new bill also provides up to $6,500 tax credit to current home owners who purchase a new primary residence. Eligible for homes with purchase agreements written by April 30, 2010, and that close between November 6, 2009 and June 30, 2010
• Qualified home buyers must have lived in their current home for 5 consecutive years of the last 8 years
• Maximum purchase price of the home is $800,000
• Single tax filers who earn up to $125,000 are eligible for the total credit amount. Partial credit can be granted for incomes up to $145,000.
• Joint filers who earn up to $225,000 are eligible for the total credit amount. Partial credit can be granted for incomes up to $245,000.
It's the $6,500 Tax Credit for Current Home Owners that's really news. Right now with interest rates at an all time low, inventory is still healthy here in the Triangle but the competition (other listings) starts to dwindle during the holiday months leading up to the end of the year. It will be interesting to watch what our market does in January.
If you have questions or would like to find out more about the tax credits - let's chat...