HOMEBUYER’S TAX CREDITS EXTENDED & EXPANDED!!
Here are the basic facts in simplified form for the homebuyer’s tax credits that were extended to year 2010 and expanded to benefit both first-time homebuyers and existing homebuyers.
FIRST-TIME HOMEBUYERS
- The first-time homebuyer credit is 10% of the purchase price or a maximum of $8,000, whichever is less.
- A first-time homebuyer is defined as someone who has not owned a home (principal residence) in the previous 3 years.
- They can avail of that $8,000 tax credit unless the home they purchased using those tax credits ceased to be their principal home for the home for the next 36 months (3 years) from the date of the purchase.
- The purchase contracts must be approved by April 30, 2010 and the closing done before July 1, 2010 to take advantage of the tax credits.
- The tax credit is claimed on IRS Form 5405 and filed with either their 2009 or 2010 federal income tax returns.
HOMEOWNERS WHO WILL BE BUYING REPLACEMENT HOMES
- The tax credit is expanded to include long-time homeowners who will be buying a new home after November 6, 2009.
- These homeowners must have owned and occupied the same home as their principal residence for at least 5 years (consecutive) of the last 8-year period before buying the new home. For example, if the homeowners buy a new house on November 30, 2009, they must have lived in it for 5 years and have owned the house since December 1, 2001.
- The tax credit is up to $6,500 (or $3,250 for married people filing separate returns).
- The homeowners buying the homes must have a binding contract by April 30, 2010 and close before July 1, 2010, similar to the requirements for the first-time homebuyers.
- Likewise, the tax credit is claimed on IRS Form 5405.
SOME RELEVANT POINTS
- There are income limits for these tax credits to apply. The full tax credit is available only to those whose modified adjusted gross income is $125,000 or less and $225,000 or less for married couples filing a joint return.
- Vacation homes and rental property buyers cannot avail of these tax credits.
- A first-time homebuyer who wants to buy a mobile home (attached to the land) can also avail of these tax credits.
As the top-ranking brokerage in the country, REMAX is heavily involved with these tax credits. REMAX Chief Executive Officer Margaret Kelly speaks about these homebuyer’s tax credits:
http://www.youtube.com/watch?v=Q3BzAYXCR1A
As your RE/MAX Realtor here in Gwinnett County, Georgia, allow me the privilege of helping you in one of the most important investments you can make. I’ve been in this business full-time for 15 years now, working in the top company in the country, RE/MAX, and I’ll be your guide to help you fulfill the great American dream of owning your home.
Now is the time to do it and I’ll be there with you every step of the way in your home buying experience. For more information, visit my website at www.OwnAtlantaHomes.com
About the author:
Mike Barilone is a professional Realtor working with RE/MAX Greater Atlanta based in Lawrenceville, Georgia. He works full-time in real estate for more than 15 years now - ”bringing buyers and sellers together since 1994.” If you’re buying a home in Lawrenceville, Duluth, Suwanee, Dacula, Buford, Lilburn, Norcross, Snellville, Loganville, Grayson, Sugar Hill, Auburn and the nearby cities near Gwinnett County and the metro Atlanta area – he will help you every step of the way. Plus, with his home construction background, he will be able to help you with your home improvement projects several years down the road.
Copyright by Mike Barilone, 2009
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