Brief Overview of the Home Buyer Tax Credit Program and Benefits

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

Interested in purchasing a home in Bluffton, Beaufort and Hilton Head areas of  SC?  Maybe you QAULIFY to take advantage of the recent Home Buyer Tax Credit Program Extension--

Here's a brief overview:

The Tax Credit Benefits will Help those who areIt is dollar-for-dollar benefit, not a tax deduction which would reduce a tax liability which would yield less in actual dollars in your pocket. In effect, a  homebuyer who qualifies for the entire benefit and owes $8,000 in income taxes would owe nothing to the IRS.

Keys to Future HomeSecondly, homebuyer who qualifies for the $8000 credit or the $6500 credit would receive a check from the treasury for the difference between their tax liability and any used credit. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 and has a tax obligation of  $4,000 in income taxes, the treasury will issue a check for the difference of $4000 to the homebuyer.

Who can take advantage of the tax credit?

1-First-Time Homebuyers 

Who may qualify as a first time homebuyer? Those who have not owned a home, within the last three years.  Both single and married tax payers who file jointly may qualify for the full tax credit.

The amount of the Tax credit for First-Time Homebuyers  is 10% of the purchase price of the home. The maximum credit allowed under the new law is $8000.

2-Current Homeowners

To qualify for this The tax credit program, home owners must have occupied a home for a period of five consecutive years for the last eight years. This home must have been a primary residence--vacation homes and investment properties do not qualify. Qualified purchase may receive a tax credit of up to $6500.

Other Qualification Stipulations

  • Maximum Purchase Price  of any home cannot exceed $800000
  • Single Tax Filers who earn up to $125000 are eligible for the full amount of the tax credit
  • Single Tax fliers who earn in excess of $125000 up to $145000 are eligible for prorated tax credit 
  • Single Tax fliers who earn in excess $145000 do not qualify for the tax credit
  • Joint Tax Filers who earn up to $225000 are eligible for the full amount of the tax credit
  • Joint Tax Filers who earn up in excess of $225000 up to $245000 are eligible for prorated tax credit
  • Joint Tax Filers who earn $245000 or more are not eligible

DEADLINES

All purchase contracts must be effective, no later than April 30, 2010 and must close no later than June 30, 2010. There are extensions for those in the military

(I am in no way offering readers tax or accounting advice, nor will I ever do so. Always check with your tax, accounting and mortgage professional.)

More information

National Association of Homebuilders

Internal Revenue Service

The Wall Street Journal

Contact Info:

You can call me at 843-368-9146

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Posted by

John March

843-368-9146

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