The Latest News About Recent Home Buyer Tax Credits
There's terrific news for people considering buying a home! Congress has recently voted for further legislation, as a part of the strategy for energizing the U.S. housing market, that makes the Federal tax credit of up to $8,000 now available to many more first-time buyers. Additionally, selected individuals who now own a home and would like to buy a new one may also be eligible for a Federal tax credit of up to $6,500.
The Extended Home Buyer Tax Credit extends and enhances the current program that is no longer in effect on Nov. 30. Both first-time and move-up buyers may now take advantage of the new tax credit. Of course, this is in addition to the current historically low mortgage interest rates.
Here are the new key provisions:
* The first-time buyers' $8,000 has been extended through April 30th, 2010. * Individuals who currently own a home are now eligible for the $6,500 tax credit, if they have resided in the home they are selling as their principal home for at least five straight years out of the past eight years. * The income limits for eligible home buyers were increased to a range of $75,000 to $125,000 (for single buyers) and a range of $150,000 to $225,000 for couples. * Time has been added to allow for closing the home purchase. As long as they have a legal contract by the end of April, they will subsequently have until June 30th, 2010, to finalize the purchase. * To qualify, the purchase price of the home must be $800,000 or less.
Additional details:
* Tax credits provide a dollar-for-dollar payment of taxes owed and are available as a refund. The amount of the tax credit will be first applied to any tax liability for the year of purchase. After that the amount remaining will be paid to the buyer. (For example a first-time buyer who owes $2000 in taxes would receive a check for $6,000). * Any single-family home purchased to be used as a primary residence (including condos, co-ops) will qualify if it is purchased by April 30, 2010 and closed by the last day of June, 2010. * The full amount of the is available for individuals who have an adjusted gross income of no more than $125,000 or $225,000 on a joint return. Above those incomes, the amount of the tax credit decreases until the upper limit is reached - $145,000 for individuals or $245,000 of joint income.
The Extended Home Buyer Tax Credit extends and enhances the current program that is no longer in effect on Nov. 30. Both first-time and move-up buyers may now take advantage of the new tax credit. Of course, this is in addition to the current historically low mortgage interest rates.
Here are the new key provisions:
* The first-time buyers' $8,000 has been extended through April 30th, 2010. * Individuals who currently own a home are now eligible for the $6,500 tax credit, if they have resided in the home they are selling as their principal home for at least five straight years out of the past eight years. * The income limits for eligible home buyers were increased to a range of $75,000 to $125,000 (for single buyers) and a range of $150,000 to $225,000 for couples. * Time has been added to allow for closing the home purchase. As long as they have a legal contract by the end of April, they will subsequently have until June 30th, 2010, to finalize the purchase. * To qualify, the purchase price of the home must be $800,000 or less.
Additional details:
* Tax credits provide a dollar-for-dollar payment of taxes owed and are available as a refund. The amount of the tax credit will be first applied to any tax liability for the year of purchase. After that the amount remaining will be paid to the buyer. (For example a first-time buyer who owes $2000 in taxes would receive a check for $6,000). * Any single-family home purchased to be used as a primary residence (including condos, co-ops) will qualify if it is purchased by April 30, 2010 and closed by the last day of June, 2010. * The full amount of the is available for individuals who have an adjusted gross income of no more than $125,000 or $225,000 on a joint return. Above those incomes, the amount of the tax credit decreases until the upper limit is reached - $145,000 for individuals or $245,000 of joint income.
About the Author:
Jim Navary has been a freelance writer and researcher for over thirty years covering a wide range of subjects. He is also a licensed real estate salesperson in the Commonwealth of Virginia specializing in real estate in the Tri-Cities area of Virginia and, in particular, Fort Lee, Virginia, area homes for sale.