Under the American Recovery and Reinvestment Act of 2009, qualified first-time homebuyers may receive a tax credit up to $8,000.
Tax Credit for First-Time Homebuyers
President Obama’s bill extends this program into 2010.
• Eligible for homes with purchase agreements signed by April 30, 2010, and closed by June 30, 2010
• Available to first-time homebuyers who have not owned a home during the past three years
• Credit amount up to 10% of the home’s value, not to exceed $8,000
• Buyers qualified for full tax credit are single taxpayers with incomes up to $125,000 and joint filers with incomes up to $225,000 $6,500
Tax Credit For Current Home Owners
President Obama’s new bill also provides up to $6,500 tax credit to current home owners who purchase a new primary residence. ·
Eligible for homes with purchase agreements written by April 30, 2010, and that close between November 6, 2009 and June 30, 2010
• Qualified home buyers must have lived in their current home for 5 consecutive years of the last 8 years
• Maximum purchase price of the home is $800,000
• Single tax filers who earn up to $125,000 are eligible for the total credit amount. Partial credit can be granted for incomes up to $145,000.
• Joint filers who earn up to $225,000 are eligible for the total credit amount. Partial credit can be granted for incomes up to $245,000.
And...those that get the credit have to live in the home for three years or have to pay it back. I almost missed that one and it is an important factor.
Ralph,
Great post and easy to read and process... Celeste.... glad you brought that up... no flippers... I think this new program could inspire a thoughtful agent to prospect for homes in the lower price ranges who purchased in 2004 or before... to list and then buy a new home... $6,500 credit could make up for the lower price they may or may not need to take to sell... and they are going to get a screaming deal in the move up price range as those have been sitting... but have to work fast and get the program in place.
Ralph, Thanks for the excellent explanation. It could affect the second home market in Naples , big time. Many have been wanting to move up to a larger condo! Thanks.
I was so happy the day that Congress passed the extension of the tax credit. Hopefully it will guide the economy towards recovery. Thanks for sharing the slimmed down version!