Real Estate Tax Credit EXTENDED and Expanded

Real Estate Corner…

Q. What’s the latest on the first-time homebuyer tax credit?

A. The tax credit for qualified first-time homebuyers was extended to this spring. Some of the original features are the same, including:

 First-time buyers can get a credit of as much as 10 percent of the purchase price, up to $8,000. The home must be your principal residence for the next three consecutive years.
 If you don’t pay enough tax to offset the credit, you can get a tax refund.
 You can’t purchase the home from your ancestors (parents, grandparents, etc.) or your lineal descendants (children, grandchildren, etc.).

New features include:
 A buyer must have a contract before May 1, 2010 and the sale must close before July 1, 2010.
 Income limits have been raised. Check sites such as www.irs.gov or www.federalhousingtaxcredit.com for details.
 If you buy after Nov. 6, 2009, the credit is available if the home will be your principal residence and the price is less than or equal to $800,000.
 Repeat buyers who lived in one residence for five consecutive years of the last eight can quality for a tax credit of as much as 10 percent of the purchase price, up to $6,500.
 For purchases after Nov. 6, 2009, you can’t claim the credit if you buy the home from a spouse or spouse’s family members.

If you have any questions, or need capable and trustworthy representation, please call me at 206-226-0565.