Spring is just around the corner and the number of homes being listed is increasing.
What does this mean for buyers? Great choices!!!!
Pair lots of choices with a tax rebate and low interest rates and it’s a great time to buy. Say, did I hear that slogan already? Someone is listening and acting. First-time home buyers reached the highest market share on record during the past year, according to the latest consumer survey of home buyers and sellers from NAR
The highly successful first time buyer tax incentive continues through April. To take advantage of the incentive contracts must be completed by April 30th. The credit can be claimed only on contracts that close by June 30, 2010.
First Time Buyers
To be eligible a buyer must be a first time buyer or not owned a home for the past three years.
Current Home Owners
Current homeowners who are selling a home they’ve occupied for five consecutive years out of the last eight can receive a credit of up to $6,500 for homes purchased between Nov. 7, 2009 and April 30, 2010.
How Does the Credit Work
It’s also easy to claim the credit by simply subtracting the amount of the credit from your federal income tax liability.
- Homes worth $800,000 or less are eligible
- The home must be the buyer’s primary residence. It does not apply to second homes or investment properties
- Single taxpayers with an adjusted gross income under $125,000 and joint filers with an income of up to $225,000 are eligible for the full credit. Individuals with an income of up to $145,000 or couples with an income of up to $245,000 can receive partial credit.
- Members of the military serving outside the United States for more than 90 days will have until June 30, 2011, to qualify for the incentive.
Links for additional information.
- National Association of Home Builders – Tax Credit
- The IRS has updated Form 5405 to include the extension and expansion of the home buyer tax credit. The instructions can be found here: http://www.irs.gov/pub/irs-pdf/i5405.pdf. The actual form can be found here: http://www.irs.gov/pub/irs-pdf/f5405.pdf.
- Comparison of the original tax incentive for first time buyer and the extension of November 2009
- NAHB Home Buyer Fact Sheet
- Official Facebook Home Buyer Tax Credit