LAST WEEK LEFT!!! GET THE TAX CREDITS OF $6,500-8,000!!!
April 26, 2010
by The Canon Team
THE DEADLINE HAS BEEN EXTENDED & EXPANDED!!
The new law extends the tax credit for first-time home buyers and opens it up to some existing home owners as well. The credit is now up to $8,000 for first-time buyers and up to $6,500 for repeat buyers.
ALL BUYERS myst have a binding contract on a house in place on or before April 30th, 2010. The purchase must be for a principal residence and must close on or before JUNE 30th, 2010. Typically, from the time you start the home-buying process until the time you close (move in), the timeframe is about 4-8 weeks.
If you currently own a home and are looking to purchase a new home, you may qualify for a $6,500 TAX CREDIT TOO! You need to have lived in your home for more than 5 consecutive years of the previous 8 to qualify.
It was designed to help revive the real estate market. The new tax credit is valid up until June 30th, 2010. Unlike the earlier $7,500 home buyer tax credit of 2008-2009, this one does not have to be repaid.
Here are a few things you need to know about the new $8,000 first-time home buyer tax credit:
1. First time buyers "defined": For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. That means if you've owned a vacation home, but not a principal residence, within the past three years, you would still qualify for the credit.
2. What is the time frame? Only those purchases on or after January 1st, 2009 and before June 30th, 2010 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.
3. Income limits: The income limits have risen in the new tax credit as well. According to the Internal Revenue Service's Website, www.irs.gov, the home-buyer tax credit phases out for individuals with modified adjusted gross incomes between $125,000 and $145,000 and between $225,000 and $245,000 for people filing joint returns.
4. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.
5. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions may be made in certain cases, such as death or divorce.)
If you've decided that NOW IS THE TIME and you are looking for your first home, CALL US TODAY!
