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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.

GOOD NEWS! Homebuyer Tax Credit Extended and EXPANDED!

by The Cincinnati Team

Here's great news you need to hear! Whether you live in Hyde Park or Montgomery, Anderson Township or Mt Adams, home buying just became more appealing. Today, President Obama signed into law a Bill that extends the existing Homebuyer Tax Credit and expands benefits to a new group of buyers. 

First Time Homebuyers  As part of the economic stimulus package enacted earlier in 2009, first time homebuyers have been eligible for a tax credit of 10% of the cost of their new home up to $8000.  That program, scheduled to expire November 30, has been extended until April 30, 2010 for the purchase contract agreement and June 30, 2010 for closing.  It is estimated that over 1.4 million homebuyers have qualified for the credit at this point.

Current owners  Even more importantly, the program has been expanded to include owners who have occupied their homes at least five of the previous eight years.  These buyers will receive a $6500 tax credit. The new home does not need to cost more than the old house.  It does not include homes over $800,000 and it must be a principal residence (vacation home purchases are ineligible).

The bill also extends this credit to members of the military serving outside the United States for at least 90 days until June 30, 2011.

Higher Income Caps  Another provision of the Bill are income limits.  With today's signing, the new income limits become $125,000 for a single purchaser and $225,000 for married purchasers. You can get partial tax credits if you earn up to $20,000 more, but after that there is no credit.  Raising the income limits by $50,000 allows many more people to qualify.

As with all tax issues, there are various exceptions and only your tax advisor can evaluate your exact tax savings, but this may make selling or buying now, instead of waiting, much more appealing.  The National Association of Realtors has prepared an Issue Brief that you might find interesting.  There is lots more information to be found at Realtor.org.

Give us a call if you are ready to buy or if we can help your friends or family!

 

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