Making the New Extended Home Buyer Taxs Credit Clear

By
Services for Real Estate Pros with Charisma Media Group, LLC 50622

 The video and accompanying chart will make the November 7th tax credit extension and expansion clear. This is courtesy of Keller Williams Realty, Inc., Austin Texas

 

Home Buyer Tax Credit Extended and Expanded

 
Current
New

Effective Date

·        January 1, 2009

·        November 7, 2009

Deadline

·        Close on or before 
 November 30, 2009

·       Contract signed before May 1, 2010, mustclose before July 1, 2010

·       Members of the uniformed services, foreign services, and intelligence employees who served an extended service of 90 days will have until April 30, 2011 and June 30, 2011.

Amount

·        First-Timers: maximum of $8,000  or 10% of sales price

·        Prior Owners: $0

·        First-Timers: Unchanged

·        Prior Owners: $6,500 if lived in prior home for at least 5 consecutive years of past 8 years.

Income Limit

·        Individual: $75,000

·        Couple: $150,000

·        Individual: $125,000

·        Couple: $225,000

Other   Restrictions

·       Home must be primary residence for at least 3 years. If home is sold or buyer moves before 3 years, must re-pay full amount of credit.

·       Buyer must be at least 18 years old and not classified as a dependent for tax purposes

·        Home must cost less than $800,000

·       New Home must be primary residence for at least 3 years following purchase. If home is sold or buyer moves, before 3 years, must re-pay full amount of credit. Exception for military, foreign services, or intelligence with extended 90 days service overseas.

How to claim

·       If purchased in 2009, by amending 2009 tax return or claiming on 2010 tax return

·       If purchased in 2010, by amending 2010 tax return or claiming on 2011 tax return


 

Posted by

John March

843-368-9146

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