By now, most people are aware of the existence of the $8000 Tax Creditfor first-time home buyers. But with the holidays, the start of UL and UK basketball and the media the way that it is, I suspect you are more likely to know Tiger Woods' mistress count than you are the details of the expanded Tax Credit Program. In particular, when Congress extended the credit until April 30th, 2010, they also added a $6500 tax credit for existing homeowners.
For those of you who were otherwise occupied, here's the answers to the questions now running through your head....
Am I eligible for the $6500 Tax Credit?
There are 3 Criteria you must meet to qualify
- You must have used your current home as your principal residence for 5 consecutive years with the last 8.
- To get the full credit as a single buyer, you need to make less than $125,000 annually, as a couple the limit is $225,000. Up to $145,000 and $245,000 respectively, you get a partial credit.
You have to have a written contract by April 30, 2010 and close before July 1, 2010.
How does the Tax Credit work?
Like the $8000 Tax Credit this is a refundable credit that is applied to your tax return. After you close on the home, you can apply it to your 2009 or 2010 return. Note that your favorite word in the preceding sentence is REFUNDABLE. This means you get the money regardless of what you owe on your taxes!
Do I have to repay the credit?
As long as you live in the house for 3 years, the answer is No!
SWEET! I'm eligible and I like free money, now what?
You need to get started right away especially if you plan to sell your current home before buying. Interest rates are still phenomenally low and buyers are hitting the market in droves. By getting a jump on the competition, you stand a very good chance of completing both selling your current home and buying a new one before the deadline. Call me at 502-921-3989 to setup a Free Consultation.
I'm reaching for the phone. Just out of curiosity, what was the final mistress count?
You really have more important things to worry about. But, if it will help you focus, nowpublic.comhas is at 17. A few are unconfirmed though. Despite the initial rapid-fire rate at which they started to come out, it appears Wilt Chamberlin's record will stand. Back to reality. Call 502-921-3989 now.
Photo courtesy of aresauburn.
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