Thursday, January 14, 2010

Are you getting the Home Buyer Tax Credit You Deserve?

The Home Buyer Tax Credit has been Extended and Expanded.

Now Both First-Time Home Buyers and Move-Up/Repeat Home Buyers who qualify can take advantage of the New Tax Credit.

Along with today’s historically low mortgage rates, it creates a Unique Opportunity for Buyers

Key Details:

  • The $8,000 tax credit for first-time buyers has been extended through April 30, 2010.
  • Current homeowners are eligible for a $6,500 tax credit, provided you have lived in the home you are selling as a principal residence for five consecutive years within the last eight years.
  • Income limits for eligible buyers were increased from $75,000 to $125,000 for single buyers and from $150,000 to $225,000 for married couples.
  • Time has been added to allow for closing the home purchase. As long as you have a binding sales contract by April 30, you will then have until June 30, 2010, to close the purchase transaction.
  • To qualify, the home must be your primary residence and have a purchase price of $800,000 or less.
How it works:
  • The amount of your credit will be first credited toward any tax liability for the year of purchase. Then the remainder will be refunded to you. (For example a first-time buyer with a $2,000 tax liability would receive a check for $6,000).
  • Any single-family residence purchased to be used as a principal residence (including condos, co-ops) will qualify if it is purchased by April 30, 2010 for $800,000 or less and closed by June 30, 2010.
  • The full amount of the credit is available for individuals with adjusted gross income of no more than $125,000 or $225,000 on a joint return. Above those incomes, the amount of the tax credit decreases until the maximum limit is reached – $145,000 for an individual or $245,000 in joint income.
For More Details visit Extended and Expanded Home Buyer Tax Credit.

Smitha Ramchandani is a licensed real estate Broker-Salesperson in Morristown West, New Jersey. She is a Buyer Specialist and a Home Marketing Expert.. You can reach Smitha and her team online at: or or or or