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Homebuyer Credit Extended & Expanded!

 

Good news for home sellers and potential buyers nationwide. Congress has decided to extend and greatly expand the Home Buyer's tax credit in an attempt to further stimulate the economy. Not only does the new legislation extend the existing first time buyer's credit until mid 2010, but it also creates a tax credit for repeat buyers. For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.

What Has Changed with the New Law?

Deadline: Whereas the original tax credit was set to expire on December 1st, 2009, buyers now have additional time to find their dream home! Buyers must have a contract to purchase a residence in place before May 1, 2010, and the deal must close before July 1, 2010 in order to take advantage of the tax credits.

Sales Price Limit: A ceiling has now been set for the sales price of homes eligible for the tax credit. For purchases made after November 6, 2010, the tax credit is only available for any homes costing less than $800,000.

Up to $8000 Credit for New Buyers:  First-time home buyers remain eligible for a credit of as much as 10% of the purchase price of a new principal residence, up to a maximum $8000. "First-time" is still defined as buyers who haven't owned a principal residence for a three year period prior to the home purchase (including both partners of a married couple).

$6500 Credit for Repeat Buyers: Homeowners considering a new home purchase may now be eligible for their own tax credit. Taxpayers who have lived in the same residence for five consecutive years out of the past eight can now qualify for a tax credit of as much as 10% of the purchase price of a new principal residence (up to a maximum $6500). The new residence need not be a single-family home, and there is no requirement that the new residence mus cost more than the previous residence.

For additional information feel free to contact Team Wilkinson at (269) 488-7653.