Just the Facts on the Home Buyer Tax Credit(s)
November 21st, 2009 categories: First Time Buyers, Real Estate Buying, Real Estate Selling
There is a lot of information floating around about the recently passed home buyer tax credit bill. The Cincinnati Area Board of Realtors produced a useful informational piece about the extension as well as details about the credit for “repeat” buyers. For current property owners, the repeat buyer could be just enough of an incentive to move on to your next home.
See sections of the article below:
“Congress just recently voted to extend the tax credit until April 30, 2010.
Eligibility requirements have been broadened to make the money available to both first-time homebuyers and “repeat” homebuyers who have owned a home as their primary resident for at least five of the past eight years. For most people, maximum qualifying earnings is based on their adjusted gross income (see line 37 on the 1040 federal tax form).
In most situations,single buyers can now earn up to $125,000 per year and get the full credit; and joint filers can earn up to $225,000 per year. The credit decreases for single buyers who earn between $125,000 and $145,000 and for buyers filing jointly who earn between $225,000 and $245,000. Home buyers earning more than the maximum qualifying income – over $145,000 for singles and over $245,000 for couples – are not eligible for the credit.
In either case, you must have a binding purchase contract no later than April 30, 2010, and you must close the transaction by June 30, 2010.
Any home you purchase will qualify for the credit, provided the purchase price does not exceed $800,000. This includes single-family detached homes, condominiums and other residences. However, you cannot receive the tax credit if you purchase a home from other family members: your parents, grandparents, children, grandchildren, or your spouse’s family members.
Congress’ decision to extend the credit and expand it to a larger home buying group is indeed good news for everyone; not only prospective homebuyers, but home sellers, Realtors, lenders and our community at large. Economists estimate the tax credit has already contributed about $22 billion to the general economy, and a total of about two million people will take advantage of the tax credit. The extension and expansion will make it possible for more individuals to take advantage of the low interest rates and affordable prices, and most importantly, invest in their future through home ownership.”
—Reported by the Cincinnati Area Board of Realtors®
The Board also provided a simple table explaining eligibility:
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[...] continuation of the Home Buyer Tax Credit (for first time home buyers and repeat buyers) combined with low mortgage rates provides the perfect [...]
Good Blog Post…
Have a look at this Post on this Blog…
You know what? They’re just rearranging the chairs on the deck of the Titantic. Isn’t that the phrase? With commercial real estate about to fall apart, this is just a cherry on top.