The New Tax Credit Laws for Buyers, Sellers, & the Military

The holidays are winding down, no better time than now for all Realtors to review the new tax laws and become an advocate for both buyers and sellers. A few facts to know…………………………… Military/ members of our armed forces who are stationed away from home for extended duty may qualify for an additional year to complete their purchase of a primary residence. Same dates apply but extended to April 30, 2011 to enter into an accepted contract and June 30, 2011 to close. Additional benefits/extensions are in place for some federal employees. A first time home buyer who purchases a multi family duplex or 4 plex home and occupies 1 of the units are only allowed 10% or up to $8K of their unit, not the full sale price. Also good to know the tax credit is 10% of the purchase price or a maximum of $8K. To qualify for the first time home buyer tax credit, doesn’t mean you have never owned a home, a buyer who has not owned a home for the last 3 years prior to the sale is eligible. New construction has a bit of a twist. The purchase date is considered the date a qualified buyer is an occupant, not the construction or closing date. Homeowners who have lived in their primary residence for 5 consecutive years out of the last 8 ending on their purchase date of a new home qualify for a $6,500 tax credit. The adjusted gross income has been raised to between $125-145K or $225k-245K for joint couples. As a reminder, a buyer who takes the credit must live in the home for 36 months from the date of purchase. If they no longer use that property as their primary residence, the amount of the credit will need to be repaid. Need more ? ………………..go to www.IRS.gov Billie