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

Reblogger
Real Estate Agent with Keller Williams Vestavia

Larry Penilla, an out of state mortgage professional, reminds us that the homebuyer tax credit expires in about 100 days!  That isn't much time, especially for "move up" buyers that need to sell a home!  Considering the amount of time for a home to be on the market and a general resistance for sellers to accept contingent offers, time is of the essence and quite honestly is running out.  Take advantage of this once in a generation (or possibly lifetime) opportunity to get paid for buying a house with financing at around 5% (an historical low)!

Original content by A&M Mortgage Group: Larry Penilla 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.

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  • Mark A. Crain, CPA
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Comments (2)

Jody Lautenbach
Century 21 Premier Associates - Pella, IA

Wow! 100 days doesn't seem so long as when I say the date of Closing by April 30th.  Great way to get buyers motivated.

Jan 21, 2010 01:45 AM
Mark A. Crain
Keller Williams Vestavia - Birmingham, AL

We need all the ammunition we can get.  Prospects, especially those that need to sell, don't realize how long it takes to (1) get your home ready to market (properly anyway) and (2) get a contract offer.  It limits their options greatly if they have to rely on a seller accepting a contingent offer and also reduces their negotiating strength.  Of course, for first time homebuyers, this isn't really that big of a deal since there is plenty of inventory.  Of course, for those first timers trying to get a down payment gift or putting their financial house in order, 100 days isn't that long either.  I'm going to email several prospects that I can't seem to get moving so maybe this will help!

Jan 21, 2010 01:55 AM

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