Davidson Realty Blog » home buyer tax credit extension

Home Buyer Tax Credit Extended!

Sherry Davidson — Mon, 16 Nov 2009 19:37:12 +0000

Davidson Realty has been working with many first-time buyers looking for homes in St. Augustine that have been unable to close by November 30, 2009, which would prevent them from qualifying for the awesome tax credit of $8,000. This was a huge problem for families taking advantage of the great pricing on short sales in St. Augustine. The lenders are getting better, but the short sale process can still be very lengthy.

But now there is good news for all of these buyers that are unable to close by November 30th. The tax credit for first time homebuyers has been extended so that you as long as you sign a contract to buy a home before April 30, 2010 and close on your home by June 30, 2010, you are eligible for the $8,000 credit.

The new law now allows existing homeowners to qualify for a $6,500 tax credit. If you sell a home that was your principal residence consecutively for 5 of the last 8 years and purchase a new home by April 30, 2010, you may qualify for the $6,500 credit. This new provision will help give incentives to move-up buyers, providing all home buyers with a tax credit.

The income limits to qualify for the credit have also been increased to $125,000 for single taxpayers and $225,000 for married taxpayers. If you have been considering a new home, please see if you qualify for this new credit and don’t miss out on a great opportunity that is only available for a short period of time. If you have any questions about the tax credit’s new provisions, we are happy to answer them.

$8,000 First Time Home Buyer Tax Credit Ends November 30th

Sherry Davidson — Mon, 12 Oct 2009 18:38:22 +0000

I was surprised to hear recently how many people looking at homes in Northeast Florida have not heard about the $8,000 tax credit for first-time homebuyers. I guess since I eat, sleep and breathe real estate, I assume other people understand what a great deal this tax credit really is.

The tax credit is similar to the Cash for Clunkers program for the car industry except instead of a $4,500 trade-in allowance, you will pay $8,000 less in taxes to the IRS or get an $8,000 federal income tax refund if you do not owe any income tax.

The $8,000 tax credit is available to anyone buying their fist home or anyone that hasn’t owned a home in three years. To qualify for the credit, you have to close on your new home by November 30, 2009. There is talk in Congress of extending the credit into 2010; however, until Congress passes new legislation, no one knows if it will be extended.

The tax credit is equal to 10 percent of the cost of the home, up to a maximum $8,000 credit. There are income limitations to qualify for the full credit. If your adjusted gross income is less than $75,000 for an individual or $150,000 if filing jointly, you will qualify for the full credit. The tax credit does not have to be repaid if you live in your home for at least three years.

If you are considering purchasing a single family home, a townhome, or a condominium, get busy and close on your home before November 30th to benefit from this terrific credit.