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Bringing the Dream of Homeownership
Within Reach
As part of its plan to stimulate the U.S. housing market and address the economic
challenges facing our nation, Congress has passed new legislation that:
- Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
- Expands the credit to grant up to $6,500 credit to current home owners purchasing
a new or existing home between November 7, 2009 and April 30, 2010.
Here is more information about how the Extended Home Buyer Tax Credit can
help prospective home buyers become part of the American dream.
Latest news:
Tax Credit Extension a Positive Step Toward Real Estate Recovery
(Nov.5)
President's Podcast: Tax Credit Extended (Nov. 5)
Who Qualifies for the Extended Credit?
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First-time home buyers who purchase homes between November 7, 2009 and April 30,
2010.
- Current home owners purchasing a home between November 7, 2009 and April 30, 2010,
who have used the home being sold or vacated as a principal residence for five consecutive
years within the last eight.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not
have owned a residence during the three years prior to the purchase.
If you or your client purchased a home between January 1, 2009 and November 6, 2009,
please see:
2009 First-Time Home Buyer Tax Credit.
Which Properties Are Eligible?
The Extended Home Buyer Tax Credit may be applied to primary residences,
including: single-family homes, condos, townhomes, and co-ops.
How Much Is Available?
The maximum allowable credit for first-time home buyers is $8,000.
The maximum allowable credit for current homeowners is $6,500.
How is a Buyer's Credit Amount Determined?
Each home buyer’s tax credit
is determined by tow additional factors:
- The price of the home.
-
The buyer's income.
Price
Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased
for $800,000 or less.
Buyer Income
Under the Extended Home Buyer Tax Credit, which is effective on November
7, 2009, single buyers with incomes up to $125,000 and married couples
with incomes up to $225,000—may receive the maximum tax credit.
These income limits have changed from the 2009 First-Time Home Buyer Tax Credit
limits. If you or your client purchased a home between January 1, 2009 and November
6, 2009, please see 2009
First-Time Home Buyer Tax Credit.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $125,000 and $145,000 for single
buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount
of the tax credit decreases as his/her income approaches the maximum limit. Home
buyers earning more than the maximum qualifying income—over $145,000 for singles
and over $245,000 for couples are not eligible for the credit.
Can a Buyer Still Qualify If He/She Closes After April
30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written binding contract
to purchase is in effect on April 30, 2010, the purchaser will have until July 1,
2010 to close.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home
for three years or more. However, if the property is sold during this three-year
period, the full amount credit will be recouped on the sale.
© Copyright NATIONAL ASSOCIATION of REALTORS®
©Copyright 2011 Brenda Jones Real Estate
Licensed in the State of Vermont |
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