What's So Great About this "Tax Credit" anyway?

By
Real Estate Agent with RE/MAX DFW Associates/PLATINUM PROPERTIES & MANAGEMENT 0534986

What's So Great About this "Tax Credit" anyway?

The benefit of a $8000.00 tax credit is, it's a Dollar-for-Dollar benefit, rather than just a "tax deduction".  If someone owed taxes, a reduction in a tax liability would be just that. If you owed $1,000 you would get taxes reduced and NO cash back.  If a buyer qualified for the entire tax benefit when purchasing a home and owed $2,000 in income taxes, they would get back $6,000 cash.

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.

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. Those in the military do have some special extensions on the timelines available.

 

Posted by

Tracy Lee Parker

Broker Associate with
RE/MAX DFW ASSOCIATES

Servicing all of North & East Texas Areas for home selling, home buying, leasing & property management since 2005!  

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Comments (3)

Erika Nicholson
ROSE ANNE ERICKSON REALTY, LLC. Columbus Ga - Fort Benning, GA
Columbus Ga Homes, Columbus Ga Real Estate, Ft Benning Ga,

Tracy, Thank you for keeping it plain and simple.  Good Luck!

Nov 09, 2009 07:13 AM
Rob Proctor
At Home Real Estate Company - Loveland, CO
GRI ePro

Also the purchaser must send in their documentation of purchase  with the tax return. This is how they are trying to curb any tax fraud.

Nov 09, 2009 07:25 AM
Tracy Lee Parker
RE/MAX DFW Associates/PLATINUM PROPERTIES & MANAGEMENT - Royse City, TX
Buy*Sell*Lease

Good point Rob, Thanks!

Nov 11, 2009 02:12 AM