$8,000 First Time Homeowner Tax Credit Extended; Credit up to $6500 for Some Other Homebuyers
First time homeowners have been getting an $8,000 tax credit since January as part of the economic stimulus package enacted earlier in 2009.
This tax credit, scheduled to expire at the end of November, has been extended until April of 2010.
A whole new group of homeowners, those who have owned their homes for at least five years, will get a $6,500 tax break under the new federal program.
“This is expected to be the last extension of the history-making tax credits, geared to stimulate the housing industry and the economy, according to Congressman Johnny Isakson, R-Ga., a former real estate executive who championed the proposal,” quotes the Associated Press.
Here are some of the provisions of the program:
- For both tax breaks a home must be purchased by April 30, 2010 and close by June 30.
- The credits are available for those buying primary homes, condos or townhouses under $800,000. Vacation homes and investment property are not eligible.
- The credit would be extended to military families serving outside of the U.S. for at least 90 days, until June 30, 2011.
- The credit would be phased out for individuals making greater than $125,000 or $225,000 combined. Under the previous plan, the full credit was given to taxpayers making $75,000 or $150,000 combined. There was a sliding scale of credit given to taxpayers who earned more than that.
- “Refundable” means that if you owe no tax, you would get $8,000 back for the first-time program. If you owe $1000 in taxes, you would get $7000 back. Our clients tell us the tax credit comes back very soon after filing for it.
- If the new home is owned less than three years, the credit must be repaid.
- We are not tax professionals and encourage you to contact your tax professional or tax attorney to see how these tax credits affect you.
We’re helping lots of first-time homebuyers make the most of these programs!
San Diego has lots of amazing opportunities for first-time homebuyers including affordable prices and low interest rates. Combined with the Tax Credit programs, things have never been better! We’d love to show you how easy and affordable it can be to buy a home of your own; contact us today!
