On Friday, November 6, the President signed into law the extension for the $8000 first time home buyer’s tax credit. There were a couple of important changes to the law that should help out more home buyers and sellers. The extension did two things, it allowed for the extension of the 2009 first time home buyer's tax credit and created another tax credit for existing home owners.
Who qualifies for the first time buyer tax credit?
- $8000 will be the maximum credit for any new home buyer.
- A new home buyer is a purchaser who has not owned a principal residence in the past 3 years. The purchaser’s spouse will also have to meet this qualification.
- The income levels have also been increased. Single buyers must make less than $125,000 annually and married buyers must make less than $225,000 annually to qualify for the total credit. There is also a $20,000 window, for buyers to receive some credit if they make more than the allowed levels. But no credit is given to single buyers who make more than $145,000, and married buyers who make more than $245,000.
- As long as you keep the property for at least 3 years, you will not have to repay this credit. However, if you sell the property the total credit will have to be repaid.
Who qualifies for the current homeowner tax credit?
- You must have owned your current property for at least 5 consecutive years out of the last 8 years to qualify for the credit of $6500.
- The aforementioned income limits also apply. ($125,000 for single, $225,000 for married, $20,000 phase out).
- Must purchase your new home between November 7, 2009 and April 30, 2010. You may also close the property before July 1, 2010 if it is under contract on or before April 30, 2010 deadline.
What properties will qualify?
- These credits are for the purchase of a primary residence. Condos, town homes, single family, new construction and re-sale homes all qualify.
- The property must be purchased for less than $800,000.
This information is for educational purposes only. Please consult a qualified tax professional if you have a specific question or if you would like more information on the first time home buyer tax credit.
Bryan Griffis, Realtor
Chapman Realty, Julie Chapman Broker
123 Benedict Road
Brunswick, GA. 31520
912-280-0088 Office
912-256-3711 Cell
bryan@bryangriffis.com
Bryan Griffis is a Realtor with the prestigious Chapman Realty. Bryan specializes in new construction, relocation, and foreclosure homes in Brunswick, GA. To have Bryan represent you, either as a buyer’s representative or seller’s representative, please feel free to contact him at www.bryangriffis.com
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All photos and written content were produced by Bryan Giffis Copyright 2009 - All Rights Reserved. This content may not be reproduced or reprinted, except for Active Rain Re-blogging, without express written permission of Bryan Griffis, REALTOR®, Chapman Realty, Brunswick Georgia.
