Extended & Expanded Tax Credits for 2010

American Recovery and Reinvestment Act of 2009 features

$8,000 first-time buyer tax credit and just extended until April 30, 2010

 

The latest federal economic stimulus plan includes an $8,000 tax credit for first-time buyers who purchase a home on or before April 30th 2010, with a phase-out by year end. For homes purchased after April 1st 2010 to December 31st 2010 the credit is still available, but it's value would be reduced by $2000 in each successive quarter until expiry at the end of 2010.

  The $8,000 tax credit is part of the American Recovery and Reinvestment Act of 2009 also known as the Stimulus Package.

 Details of the tax credit include:

• The temporary credit is only available for home purchases made prior to 4/30/2010 and is equal to 10 percent of the cost of the home, up to a maximum credit of $8,000. (For example, a home purchased for $80,000 or more would qualify for the full $8,000 credit while a $70,000 home would only qualify for 10 percent, or $7,000
• Buyers claim the credit on their federal tax return to reduce their tax liability. If the credit is more than the taxes owed, the buyer will get a refund check for the difference.
• First time buyers are qualified for the $8000 credit. A first-time buyer is defined under the tax credit as an individual who has not owned a home in the last three years. Eligible properties include anything that will be used as a principal single-family residence – including condos and townhouses. This is money that never has to be repaid provided you live in the home for three years!
• There are income guidelines on the credit. Individuals with an adjusted gross income up to $125000 are eligible for the full tax credit and $150,000 for couples, after a home purchase of Nov. 6, 2009. The new tax credit does not have to be repaid if the buyer stays in the home at least three years. But if the home is sold before that, the entire amount of the credit is recaptured on the sale.
• *NEW* Current Homeowners looking for a new home could also qualify for a $6500 credit if they have lived in their existing primary residence for at least 5 consecutive years out of the last 8 years. You must sign a purchase contract no later than April 30,2010 and close before July 1, 2010. Again, this is money that never has to be repaid, provided you live in the home for three years!
• Interesting note and disclaimer: If you co-sign a mortgage to help your non-dependent child buy his or her first home, your eligibility does not affect your child's ability to qualify for the credit. I can't provide every detail of the program here and I'm not qualified to give you tax advice.My advise to you is to seek advice from your tax accountant.

The opportunity of a lifetime is at hand--right now!

  

An over supply of homes are available

at affordable prices and historically low interest rates--

 

A Great Combination!