Well, it’s here and I am so happy the government decided to help existing home owners get a little help with their next home purchase. On November 6th the Senate passed an extension on the Tax Credit bill for first time home buyers. Within that bill the government also included a Tax Credit for existing home owners. Here are some of the specific details for the $6500.00 Tax Credit.
1. The law defines a tax credit qualified move-up home buyer (“long-time resident”) as a home owner who has owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date. The buyer doesn’t have to purchase a more expensive home than his current residence.
2. The credit is good for properties under $800,000 and is equal to 10% home value maxed up to $6500.00.
3. The credit is for individuals making $125,000 and married couples limited at $225,000. There are other tax rules, so please speak with your tax expert for specific details.
4. What type of home is considered for the tax credit? Single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. However you cannot purchase from any relatives including spouse, children, parents, grandparents, etc…
5. What is the time frame that the credit is good for? The date of first occupancy must be after November 6, 2009 and on or before April 30, 2010 (or by June 30, 2010, provided a binding sales contract was in force by April 30, 2010).
For additional information please go to this website for additional information. http://www.federalhousingtaxcredit.com/home.html
Sunday, November 15, 2009
Thursday, November 5, 2009
Congress Set to Expand Homebuyer Tax Credit
First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the Senate voted Wednesday to extend and expand the tax credit to include many buyers who already own homes. The House is scheduled to vote on the bill Thursday.
Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn't owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.
"This is probably the last extension," said Sen. Johnny Isakson, R-Ga., a former real estate executive who championed the credits.
The homebuyers tax credit is one of two tax breaks totaling more than $21 billion that the Senate included in a bill extending unemployment benefits for those without a job for more than a year. The other would let companies now losing money recoup taxes they paid on profits earned in the previous five years.
Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time homebuyers — or anyone who hasn't owned a home in the last three years — would still get up to $8,000. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30.
"This is probably the last extension," said Sen. Johnny Isakson, R-Ga., a former real estate executive who championed the credits.
The homebuyers tax credit is one of two tax breaks totaling more than $21 billion that the Senate included in a bill extending unemployment benefits for those without a job for more than a year. The other would let companies now losing money recoup taxes they paid on profits earned in the previous five years.
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