$8000 Homebuyer tax credit update

$8000 Homebuyer tax credit update…The tax credit has been extended!!!!

Under the law, individuals with income up to $125,000 a year and couples earning up to $225,000 may be eligible for the $8000 Homebuyer tax credit. The extension would cover homes under contract by April 30th and closed by June 30th, 2010. And as we had also predicted, the  homebuyer tax credit will be expanded to non-first time homebuyers as well. There are a few tweaks for non-first time homebuyers - the credit is reduced from $8000 to $6500, and they must have owned and lived in their primary residence for at least five of the past eight years. Their new purchase must be for their primary residence, not a second home or investment home.

This is a great deal for home owners who want to more up, downsize or get a job transfer.
The purchase price of the home is capped at $800,000 in both instances.

Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The legislation maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

Military veterans earn one-year federal tax credit extension


Military personnel, members of the Foreign Service, and employees of the intelligence community
have an extra year, through June 2011, to buy their principal residence in the U.S. and claim the federal tax credit. The deadline for a binding contract is April 30, 2011; the deadline to close the purchase is June 30, 2011. The extension applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at period of least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.
 
The bill also adds some fraud protection.  Buyers will now have to include proof of purchace with their tax return.

For more details:
http://www.irs.gov/newsroom/article/0,,id=204671,00.html

http://www.federalhousingtaxcredit.com/glance.php

How does all this work in my case?  Ask your tax professional/

Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® DRE# 00476662
Certified Distressed Property Expert
Taylor Place Real Estate
Buy or Sell a Home with Me, Use my Moving Truck - F R E E for life.
dennis@SanDiegoHomes4u.com
760-436-0087, or cell at 760-212-8225
http://www.sandiegohomes4u.com/home.htm

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