An Update on Recent News Surrounding the Homebuyer Tax Credit
Much discussion and controversy have been surrounding the impending end of the First Time Homebuyer Tax Credit. Initially set to expire in November, the government is now considering extending the credit into next year. In this article, you will find some of the recent developments in this topic.
In order to be eligible, the cost of the home may not be more than $800,000 and there would be $125,000 and $225,000 income limits for single and joint filers (over the age of 18), respectively. Additionally, as long as the new home is the buyer's "principal residence" for at least 3 years after the date of purchase, the credit will not need to be repaid.
$8,000 is the amount of the credit for first time homebuyers and there is now talks of adding a $6,500 credit for move-up buyers (people who have been using the home they are leaving as their "principal residence" for at least 5 years) who purchase homes between December 1, 2009 and April 30, 2010, as long as the transaction closes by June 30. Any purchases made in 2010 would be acceptably filed on 2009 tax returns, as long as a HUD-1 settlement statement is attached when the credit is being claimed.
As always, buying a home is a big task and there are lots of questions anyone considering buying or selling will have. For this reason, it is a very good idea to get the assistance of a qualified, experienced and helpful real estate agent. Your real estate agent can mean the difference between happy holidays in your new home or spending the holidays stressed out and worried about just one more unnecessary thing!
