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Tax Credit Expires Soon - Don't Miss Out on the IRS Benefit

by The Cincinnati Team

31 days until the Tax Credit Deadline

The Extended Home Buyers Tax Credit offers current homeowners and first-time home buyers alike an incredible tax-saving opportunity when they buy a home through April 30, 2010. First time buyers, who haven't owned a primary residence in the past three years, are eligible for a tax credit of 10 percent of a home's purchase price, up to a maximum of $8,000. $8000 Tax credit

Current homeowners are also eligible for a tax credit of their own. Homeowners who have lived in their primary residence for 5 consecutive years of the past 8 are eligible for a tax credit of 10% of a home's purchase price, up to maximum of $6,500.

The following conditions apply:

  • The tax credit is only awarded on homes purchased for $800,000, or less
  • Full tax credit is available to buyers earning up to $125,000 a year, or $225,000 for married couples filing jointly
  • Partial tax credit is available to buyers earning between $125,000 to $145,000, or for married couples earning between $225,000 to $245,000.
  • Under the rules, as long as a written binding purchase contract is in effect on April 30, 2010, the buyer has until July 1, 2010 to close.

The tax credit is a dollar-for-dollar reduction in the buyers tax liability, and does not have to be paid back as long as the buyer remains in their home for three years or more. This is a once-in-a-lifetime offer to have Uncle Sam help you buy a house. Don't let this opportunity pass you by!

Home Buyer Tax Credit is Powerful Stimulus to Home Sales…Should you take advantage of the Government Offer?

The Stimulus Program extended as of December 1, 2009 into this Spring is a powerful incentive to purchasing a home…good whether you are purchasing your first home or actually for any home under $800,000!  If you have never owned a home, need more space than your current home provides, want to downsize or reduce your payments or even want to help your children get a leg up in the home market…NOW IS THE TIME TO ACT.

Why?  It isn’t just a tax credit…it means that even if you don’t owe any taxes, you will receive the full credit.  Other reasons include:
• the availability of historically low interest rates,
• loans that require as little as 3.5% down payment,
• ability to use the tax credit for part of your money down and
• reduced home prices.

Details for First Time Purchasers

First Time Buyers will receive up to $8,000 ($4,000 if married and filing separately).  The credit cannot exceed 10% or the purchase price of the home.  When Congress approved the extension of the incentive, they increased the income limits to $125,000 if single and $225,000 if married.  If you earn as much as $20,000 more than that, there is a phase out of the benefit.

You are considered a first time homebuyer if you haven’t owned a principal residence in the United States in the last three years.

The contract must be negotiated and in effect on April 30, 2010 and closed by June 30, 2010.  Some additional details include: purchases by dependents are ineligible.  Surprisingly, if you co-sign a mortgage to help your non-dependent child buy his of her first home, your eligibility status does not affect your child’s ability to qualify for the credit.  The tax credit money never has to be repaid as long as you live in your home for at least three years.  There are programs that will advance the credit to help with your down payment.  The home price cannot exceed $800,000.

You can claim the credit when you file your 2009 or 2010 tax returns, so it makes sense to consult your tax preparer to determine which alternative may benefit you most. Purchasers must attach documentation of the purchase to their tax return in order to prevent fraud.

Details for the Repeat Homeowners Credit

Are you a current or former homeowner who is considering a home that better meets your needs?

The amount of the credit is $6,500.  Current homeowners must have used the home sold, or being sold, as a principal residence consecutively for 5 of the previous 8 years.  Only a home purchased after December 1, 2009 qualifies for the credit.  The credit amounts to 10% of the purchase price, up to the $6,500 allowed.

If you currently own your principal residence, you don’t have to sell it – but you do have to move into the home you buy.  Your home can cost more or less than your previous home; it doesn’t matter.

The income limits of $125,000 if single and $225,000 if married are the same as for the first time buyer credit.  You can also get some credit payout, even if you earn as much as $20,000 more.

Again the contract must be negotiated by April 20, 2010 and closed by June 20, 2010 and need not be repaid, if you live in the new home for at least three years.

Little known facts include: even if you don’t owe taxes, you can receive the full credit.  The tax credit can be claimed on either your 2009 or 2010 filing of your tax return.

How can the Cincinnati Team Help?

Saralou Durham and Mary Elsener have over 30 years of experience in the real estate business. It is important to us to find a home that meets your needs and goals, if the time is right for your purchase.  You can count on us to be honest about the process, to educate you on conditions affecting your sale and to make sure you understand the buying and selling process.  Call Saralou (513-646-4819) or Mary (513-646-4819) for help getting your tax credit.

The time to act is now, before this tax credit stimulus program is G-O-N-E in 2010.  It is unlikely to be extended again as proof mounts that the economy is improving.

Housing Stimulus Tax Credit Extended and Expanded

by The Cincinnati Team

The Extended Home Buyers Tax Credit offers current homeowners and first-time home buyers alike an incredible tax-saving opportunity when they buy a home through April 30, 2010. Here are the details:

First time buyers, who haven't owned a primary residence in the past three years, are eligible for a tax credit of 10 percent of a home's purchase price, up to a maximum of $8,000.

Current homeowners, who are vacating a principle residence that they have lived in for 5 of the past 8 years, are eligible for a tax credit of 10% of a home's purchase price, up to maximum of $6,500.

The following conditions apply:first time homebuyrs

  • Full tax credit is available to buyers earning up to $125,000 a year, or $225,000 for married couples filing jointly.
  • Partial tax credit is available to buyers earning between $125,000 to $145,000, or for married couples earning between $225,000 to $245,000.
  • The tax credit is only awarded on homes purchased for $800,000, or less.
  • Under the rules, as long as a written binding purchase contract is in effect on April 30, 2010, the buyer has until July 1, 2010 to close.

The tax credit is a dollar-for-dollar reduction in the buyers tax liability, and does not have to be paid back as long as the buyer remains in their home for three years or more. This is a once-in-a-lifetime offer to have Uncle Sam help you buy a house. Don't let this opportunity pass you by.  

 

The Extended and Expanded--- the Homebuyer Tax Credit

by The Cincinnati Team

Details, Details...the Homebuyer Tax Credit has been extended and expanded to include more buyers.  If you have thought you  might want to buy a home soon, whether you are a first time buyer or a current seller who wants to move up, you may want to accelerate your timetable.

This CHART answers lots of questions at a glance:

How long do you have to live in your home to sell and buy another one?

Who qualifies as a "first time buyer?"

What would be the amount of my tax credit?

Are there deadline dates?

Can I qualify when buying a vacation home?  Rental property?

What kind of income limits are in place for the credit?

Are there any partial income categories?

What is the maximum price you can pay?

Will you have to repay the tax credit when you resell?

All of these are answered on this chart, but check with your accountant for any questions about your IRS liabilities.  They can help you determine if this is the right time to move forward by analyzing your financial picture. 

Check out this video as a recap.

Wondering about the Federal Housing Tax Credit?

by The Cincinnati Team

Do you have lots of questions about the Federal Housing Tax Credit?  Wondering if you can qualify for the $8000 First Time Buyer Tax Credit?  Have people been encouraging you to take advantage of the $6500 Home Seller/Buyer Tax Credit? Are you a repeat home buyer?bag os money

Questions...Questions...Questions!

Here are some answers.  The National Association of Home Builders has compiled information that answers these questions and more on one comprehensive site.  In their report, you can find out what the income limits are, how much of a tax credit you can earn, special credits for military, foreign service and intelligence officials, how to claim the credit and many other topics.

As always you are encouraged to talk to your accountant, who could evaluate the program and apply it to your special cercumstances.  Whenever the Internal Revenue Service is involved, we want to get it right!

Displaying blog entries 1-5 of 5

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