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Business Real Estate Here's the Scoop on Recent Home Buyer Tax Credits
Business Real Estate Here's the Scoop on Recent Home Buyer Tax Credits
| Here's the Scoop on Recent Home Buyer Tax Credits |
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| Written by Jim Navary |
| Monday, 23 November 2009 08:19 |
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There is terrific news for people thinking about buying a home! Congress has recently passed further legislation, as a part of the plan for stimulating the U.S. real estate market, that makes the Federal tax credit of up to $8,000 now available to even more first-time buyers. Additionally, some individuals who presently own a home and want to purchase a new one will also be eligible for a Federal tax credit of up to $6,500. The Extended Home Buyer Tax Credit extends and improves the current program that expires on Nov. 30th. Both new and move-up buyers can now take advantage of the new tax credit. Of course, this is in addition to the current historically low home loan interest rates. Here are the new key provisions: * The first-time buyers' $8,000 has been extended through the end of April, 2010. * Current homeowners are now eligible for a $6,500 tax credit, if they have lived in the house they are selling as their principal residence for five straight years within the past eight years. * Income limits for qualifying home buyers were increased to a range of $75,000 to $125,000 (for single buyers) and a range of $150,000 to $225,000 for couples. * Time has been extended to make allowance for closing the home purchase. As long as they have a binding contract by the 30th of April, they will subsequently have until the end of June, 2010, to finalize the transaction. * In order to qualify, the purchase price of the home must be $800,000 or less. Additional details: * Tax credits grant a dollar-for-dollar reduction of taxes owed with any surplus funds available as a refund. The amount of the tax credit will be first applied to any tax liability for the year of purchase. Subsequently the amount remaining will be refunded to the buyer. (For example a first-time buyer who owes $2000 in taxes would receive a payment of $6,000). * Any single-family home purchased to be used as a primary residence (including condos, co-ops) will qualify assuming that it is purchased by the 30th of April, 2010 and closed by the last day of June, 2010. * The entire amount of the tax credit may be claimed by individuals who have an adjusted gross income of no more than $125,000 or $225,000 on a joint return. Above those incomes, the amount of the tax credit is reduced until the maximum limit is reached - $145,000 for individuals or $245,000 of joint income. About the Author: Jim Navary has been a freelance writer and researcher for over thirty years covering a broad range of subjects. He is also a licensed real estate agent in the Commonwealth of Virginia specializing in real estate in the Tri-Cities area of Virginia and, in particular, Colonial Heights, Virginia, area houses for sale. Kindly provided by MoneyHunter.org You are welcome to use this article on your own website, if you include the link just before this text. |
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