With the signing of the Extended Home Buyer Tax Credit existing homeowners may now qualify for a $6500 Tax Credit. This new legislation is time sensitive and unfortunately does not apply to all existing homeowners. Here are the important points to know...
- Who qualifies - current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight qualify.
- Time Limits - as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
- Income Limits - single buyers with incomes up to $125,000 and married couples with incomes up to $225,000-may receive the maximum tax credit. The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income-over $145,000 for singles and over $245,000 for couples are not eligible for the credit.
- Price Limits - credit may only be awarded on homes purchased for $800,000 or less.
Repayment of Tax Credit - there is no repayment of the tax credit if the purchased property is occupied for three year or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.
Now you know the facts. What does it mean...
- You receive the Tax Credit by purchasing a home. You are not required to sell your current home - just make the new home your principle residence for 3 years.
- You can purchase a property for a higher value or lower value than your present home.
- You must act now...April 30 is the deadline for having a home under contract.
- Upon closing the new home purchase you can file an amended tax return for an immediate $6500 Tax Credit.
- The present low prices and mortgage rates will not last forever
- Here is the opportunigy to "move" to your dream home