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The tax credit which had been scheduled to expire November 30, 2009 is being extended --- and expanded to include repeat home sellers of a primary residence as well. Here is a rough outline of the details;1. The Tax Credit will be $8,000. for First Time Homebuyers and $6,500. for Move Up Homebuyers
1. The tax credit will be $8,000 for first time homebuyers and $6,500 for move up homebuyers (from December 1, 2009 - April 30,2010.
2. Move Up Buyers will be eligible, so long as the home they are leaving has been used as their principal residence for 5 years or more (having lived in the home for 5 of the last 8 years).
3. The tax credit will sunset on April 30th, 2010. However, there will be a binding contract rule that will permit those with contracts as of April 30th, 2010, to qualify for the Tax Credit so long as they close on the new home by June 30,2010.
4. The income limits for both First Time Homebuyers and Move Up Homebuyers will be $125,000. for a single's tax return and $225,000. for a joint tax return.
5. Cost of the home can not exceed $800,000 to be eligible.
6. For home purchases made in 2010, taxpayers will be able to claim the Tax Credit on their 2009 income tax return.
7. Homebuyers will not have to repay the Tax Credit, provided the home remains their principal residence for 36 months after the purchase.
8. The amendment includes a military waiver provision, meaning the recapture provision will not apply in the case of a member of the Armed Forces, Military Intelligence or Foreign Service who is on qualified official extended duty. In addition, members of the military who have been deployed overseas for 90 days or more in 2008 or 2009 would have until April 30th, 2011, to claim the Homebuyer Tax Credit.
9. The amendment also includes anti-fraud (yes, there have been fradulent situations in the original tax credit!) language that provides math authority to the IRS to do greater oversight during the processing of the return rather than waiting for an audit situation. The amendment requires the taxpayer claiming the Tax Credit to be 18 or older as well as requiring a HUD-1 Settlement Statement to be attached when claiming the credit.
With Interest rates at 30 year lows, depressed property values, and a tax Credit, Now really is a good time to buy a home!
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