The 1st time home buyers tax credit has done a fantastic job of putting at least a little bit of floor in the housing market. It has now been extended and expanded. Under the new legislation, which President Obama is expected to sign, the 1st timers part of the program is extended through April 1. A new section is added that will give a $6500 tax credit to buyers who have owned their current home for at least 5 years.
The 1st time credit is $8000. The buyer must have the home under contract by April 30th. The closing must take place by the end of June. The minimum qualifying income levels have been increased as well. The single persons income level has been increased from $75000 to $125,000. The couples level has been increased from $150,000 to $225,000. This should make the tax credit available to almost everyone.
Persons who have owned their home for over 2 years still qualify for $250,000 tax exemption on the gain from their home or $500,000 exemption for couples. This could be an opportunity to get a lot of tax free cash for many people. This should be a better boost to the economy than almost any other provision of the stimulus package.
David Segrest is a REALTOR® in Charlotte NC. His website is http://www.segrestrealty.com/ His email is david@segrestrealty.com He is also a contributor on Argentina to: http://realestatebloginternational.com/
Showing posts with label 1st time home buyer's tax credit. Show all posts
Showing posts with label 1st time home buyer's tax credit. Show all posts
Wednesday, November 11, 2009
Wednesday, May 27, 2009
1st Time Home Buyers Tax Credit
1st Time Home Buyers Tax Credit
Do you know how to use the 1st time home buyers tax credit for yourself or your clients? Originally (2008) the tax credit had a snake in it. It had to be repaid over time. That has been fixed. It does not have to be repaid now if the people do not sell the home for 3 years. The credit amount was $7500 Not everyone is eligible; but for those who are the tax credit can be quite helpful.
A single person who makes less than $75,000 or a married couple who makes up to $150,000 and who have not owned a home during the last 3 years will qualify. The deduction is 10% of the purchase price of the home up to $8000. This will not work as down payment assistance because the money comes when the 2009 tax refund is received. The credit is only good for homes purchased during 2009. It is possible that it will be extended.
Not many buyers are using the credit. That is probably because of the old restriction of having to pay the money back. The need to have a down payment could also be a problem. For people who plan ahead this could be a nice bonus. For REALTORS it could be a minor stimulus. For more information go to: http://www.federalhousingtaxcredit.com/2009/glance.php
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Do you know how to use the 1st time home buyers tax credit for yourself or your clients? Originally (2008) the tax credit had a snake in it. It had to be repaid over time. That has been fixed. It does not have to be repaid now if the people do not sell the home for 3 years. The credit amount was $7500 Not everyone is eligible; but for those who are the tax credit can be quite helpful.
A single person who makes less than $75,000 or a married couple who makes up to $150,000 and who have not owned a home during the last 3 years will qualify. The deduction is 10% of the purchase price of the home up to $8000. This will not work as down payment assistance because the money comes when the 2009 tax refund is received. The credit is only good for homes purchased during 2009. It is possible that it will be extended.
Not many buyers are using the credit. That is probably because of the old restriction of having to pay the money back. The need to have a down payment could also be a problem. For people who plan ahead this could be a nice bonus. For REALTORS it could be a minor stimulus. For more information go to: http://www.federalhousingtaxcredit.com/2009/glance.php
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Subscribe to:
Posts (Atom)
