There's 100 Days Left To Claim The Homebuyer Tax Credit

By
Mortgage and Lending with A&M Mortgage Group 214765

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100 days remain for the Home Buyer Tax Credit ExpirationNovember 6, 2009, Congress voted to extend and expand the First-Time Home Buyer Tax Credit program.  There's 100 days left to claim it.

The expiration date of the up-to-$8,000 tax credit has been pushed forward to spring, requiring homebuyers in Crown Point to be under contract for a home no later than April 30, 2010, and to be closed no later than June 30, 2010.

In addition, "move-up" buyers were also added to the program's eligibility list meaning you don't have to be a first-time home buyer to be eligible for the tax credit.  If you've lived in your home for 5 of the last 8 years, you meet the IRS requirements.

Move-up buyers are capped at a total tax credit of $6,500.

The tax credit's basic eligibility requirements remain the same:

  • You can't purchase the home from a parent, spouse, or child
  • You can't purchase the home from an entity in which they're a majority owner
  • You can't acquire the home by gift or inheritance
  • All parties to the purchase must meet eligibility requirements

The new law includes some notable updates, however. 

First, the subject property's sales price may not exceed $800,000. Homes sold for more than $800,000 are ineligible.  And, also, household income thresholds have been raised to $125,000 for single-filers and $225,500 for joint-filers.

And lastly, don't forget that the program is a true tax credit -- not a deduction.  This means that a tax filer who's eligible for the full $8,00 credit and whose "normal" tax liability totals $5,000 would receive a $3,000 refund from the U.S. Treasury at tax time.

The complete list of qualifying criteria is posted on the IRS website.  Review it with a tax professional to determine your eligibility.  Then mark your calendar for April 30, 2010.

There's just 100 days to go.

Comments (3)

Aaron Cullen
Brokers Inc. Residential Real estate - Folsom, CA
Folsom, El Dorado Hills & Sacramento Real Estate &

As this window of opportunity was closing last time, the offers started pililng up.  Get in now and get it done while things are quiet!

Jan 21, 2010 01:31 AM
Kirk Williams
Private Venture Capital - Everett, WA

Will the government have the guts to pull the plug on this? Will HUD consider bringing back the down payment assistance program? These and other questions ..... good post.

 

Jan 21, 2010 01:35 AM
Julie Reddington
Colorado Home Realty - Highlands Ranch, CO
Passionate, Professional, loyal and kind

Thanks for this.  It gave me a prompt to remind my Buyers to get moving.

Jan 21, 2010 02:05 AM

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