Special offer

Federal Tax Credit Extended - What You as a Buyer Need to Know

By
Real Estate Agent with Savvy + Company (704) 491-3310 228209

Federal Tax Credit Extended - What You as a Buyer Need to Know

$8000 Federal Tax CreditTax Credits are available for both first time home buyers as well as those purchasing primary residences who have owned a home for 5 of the last 10 years. Condos, townhomes and single family homes apply and the maximum purchase price is $800,000.  Two income caps have been set:

  • If an individual makes $125,000 or higher, they will not be eligible.
  • If a couple's joint income is $225,000 or higher, they will not be eligible.


The federal tax credit application form can be found here (IRS form 5405).  

Here's a quick video version of the new federal tax credit explanation as well. (Scroll to the bottom of the web page to view the video).

This new bill is going to cost $10 billion just for the home buyer tax credit.  Here's a more detailed version of the explanation of the extended $8,000 and $6,500 federal tax credit:

 

 

Comments(16)

Bonner Thomason
Keller Williams Realty - Kernersville, NC
CRS, ABR, GRI, e-Pro

Tou always do a great job of explaining things. GREAT POST!!!

Bonner

Jan 10, 2010 03:09 AM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth
Debe, the individual and couple income limits people need to know especially if they exceed those numbers.
Jan 10, 2010 05:40 AM
Liz Loadholt
Liz Loadholt- AgentOwned Realty- Covering SC - Mount Pleasant, SC
Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC

Debe ---- this is a nice job of explaining the Tax Credit Extension. I'm going to re-blog this. Thanks.

                                                                                     
                                                                                    

Jan 10, 2010 05:40 AM
Christopher Watters
Watters International Realty - Austin, TX
Austin Realtor (512-829-8000)

Great post. That video is great for consumers. Thank you NAHB!

Jan 10, 2010 06:51 AM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Great explanation of the rules and, thank you in advance for the reblog I am about to do :)

Jan 10, 2010 06:58 AM
Don Rogers
Keller Williams Realty Chesterfield - O'Fallon, MO
Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

Debe,

As always a good explination of the extended tax credit.  Thank you

Jan 10, 2010 09:02 AM
Peggy James
SAMSON PROPERTIES - Woodbridge, VA
Woodbridge Virginia Area Real Estate Specialist

Nice Post Debe. I'm going to reblog this as well.

Jan 10, 2010 10:21 AM
Esther (Essie) Cruz
Coldwell Banker Realty/Monmouth-Ocean - Manalapan, NJ
Manalapan Marlboro, NJ Real Estate

Deb, good post-- very well said--simple and to the point!

Jan 10, 2010 11:16 AM
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

Debe - This is a great breakdown of the extended tax credit.

Jan 10, 2010 11:56 AM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Debe

Thanks for sharing your insights great post.

Good luck and success.

Lou Ludwig

Jan 10, 2010 12:38 PM
Marzena Melby
Coldwell Banker Burnet Realty - Richfield, MN
Realtor, Twin Cities Minnesota Real Estate

It's such a good idea to continue to remind buyers and sellers about the credit and how it works.

I love your graphics, Debe.

Jan 10, 2010 08:49 PM
Sue Wettstein Brazzel & Dipper Wettstein
Howard County, MD - RE/MAX 100 - Columbia MD - Columbia, MD
"Fast, Efficient, Hassle-Free Service!"

Deb,

Thank you - I'm going to re-blog.  Your posts are a delight to the eye and to the mind.

Sue

Jan 10, 2010 11:08 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Great post Debe.  And before you know it time will be running out.  Only a little over 90 days to get a home under contract to take advantage o the credit.

Jan 11, 2010 05:20 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Hi Everyone!  I am so in arrears in reciprocating your wonderful comments and I do apologize!  I posted this in the hopes that the consumer has a resource from which to have any questions that they may have pertaining to the Extended Federal Tax Credit. 

It won't be long before we're doing the countdowns again either, will it?!

Have a fabulous Friday...

 

Jan 14, 2010 04:50 PM
Lisa Schlitz
Home Run Real Estate, Inc. - Wellington, FL
Realtor - Wellington, Florida Homes 561-214-3216

Thanks for the info on this-you did a great job of explaining it. Mind if I re-blog? I've found that the consumers need this explained over and over...

Jan 20, 2010 09:31 PM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Lisa:  Feel free to re-blog!  You're right, I get questions on this over and over again so, it's nice to have one spot in which to refer the consumer.

Jan 21, 2010 12:14 AM