Blog, Market, Real Estate, buyers, sellers
Federal Housing Tax Credit - 2009/2010
November 10, 2009 by heighlo · Leave a Comment
Great news for buyers and sellers! The Federal Housing Tax Credit has been amended and extended. In addition to credits for first time buyers, there is also now a credit for move-up buyers.
FIRST TIME HOME BUYER CREDIT:
- $8,000 tax credit for first time buyers - which is defined by IRS as someone who hasn’t owned a principal residence during the three years prior to this purchse.
- Tax credit is up to 10% of the home’s purchase price - maximum of $8,000.
- Home price must be less than $800,000 sales price.
- Applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However - if binding agreement is reached on April 30, 2010 - you just have to close by June 30, 2010 to be eligible.
- For homes purchased after November 6, 2009 and by April 30, 2010 - the income has been increased to single filers at $125,000 and married couples filing jointly at $225,000 to qualify for the full tax credit.
MOVE-UP BUYERS:
- To be eligible to claim the tax credit - buyers must have owned and lived in previous home for 5 consecutive years out of the last 8 years.
- Tax credit doesn’t have to be repaid
- Tax credit is equal to 10% of the sales purchase price up to $6,500
- Tax credit applies to homes with purchase prices of $800,000 or less
- Applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However - if binding agreement is reached on April 30, 2010 - you just have to close by June 30, 2010 to be eligible.
- For homes purchased after November 6, 2009 and by April 30, 2010 - the income has been increased to single filers at $125,000 and married couples filing jointly at $225,000 to qualify for the full tax credit
This should help continue to move inventory along with the great low interest rates. And if you are selling your home - this will also help open doors to buyers who might need just a bit more incentive to buy! As always - contact me if you have any questions or are interested in buying or selling!
You can visit the Federal Housing Tax Credit site here.
