The 2009 First-Time Homebuyer Tax Credit was pretty great - it enabled many first-time homebuyers to become homeowners and created an incentive to help kick-start our slow economy. The NEW 2010 Extended and Expanded Homebuyer Tax Credit is creating quite a stir, too, but it has also created some confusion and brought up many questions from homebuyers, both veteran and first-timers.
Here are some answers to a few of the many questions out there - they may be questions YOU have, as well:
Is the tax credit for first-time homebuyers only?
No, the NEW Extended and Expanded Homebuyer Tax Credit is for all buyers. There are a few exceptions. If you have owned and occupied a residence for five consecutive years of the past eight years, you qualify! First-time homebuyers still qualify, as well. There are also some income caps and maximum purchase price qualifications.
What is the deadline for the homebuyer tax credit?
To qualify for the 2010 Extended and Expanded Homebuyer Tax Credit, you must be under contract to purchase a home by April 30, 2010, and you must close on that home by June 30, 2010.
Is there a maximum purchase price?
Yes, the maximum price to qualify is $800,000. However, there is no minimum purchase price.
What is a tax credit?
A tax credit is a direct reduction in tax liability owed by an individual to the IRS. In the event that no taxes are owed, the IRS will issue a check to the individual for the amount of the credit.
Where can I get more information about the credit?
You can click on the image below to download our FREE comprehensive guide to the NEW Extended and Expanded Homebuyer Tax Credit. After receiving your copy, there is no obligation to contact us further. If you have additional questions, you can email me at Maura@gebhardtgroup.com for more information and guidance toward your home purchase.
PLEASE NOTE: Neither The Gebhardt Group nor any of its members are Certified Public Accountants. Please consult your financial advisor and/or your attorney before following any financial advice.
Maura Neill, ABR, CRS, MA
The Gebhardt Group
RE/MAX Greater Atlanta
10220 Medlock Bridge Road
Johns Creek, GA 30097