Time to Get Moving !!
The Home Buyer Tax Credit Program is About to Expire
Posted April 07, 2010
The first-time home buyer tax credit, extended and expanded to include existing homeowners expires very soon.
If you've been delaying a decision on buying a home or condo in the Sarasota, Lakewood Ranch, Bradenton, Osprey or Venice real estate markets, it's time to contact a competent
Realtor® TODAY and get a home purchase contract signed on or before April 30th or you're going to miss out on the
opportunity to gain up to a $8,000 income tax credit if you're a first-time buyer or up to $6,500 if you're currently a homeowner.
And don't forget that, in addition to having to get a home purchase under contract (that means signed by both the buyer and the seller) by April 30, you must also close on the sale on or before June 30, 2010.
Who qualifies as a "first-time buyer" for up to an $8,000 credit?
The law defines a “first-time home buyer” as one who has not owned a principal residence during the 3-year
period prior to the purchase. For married taxpayers, the law tests the home ownership history of both the home buyer
and his/her spouse.
If, for example, you have not owned a home in the past 3 years but your spouse has owned a
principal residence, neither you nor your spouse qualifies for the tax credit. However, there are
exceptions. As an example, there is a possibility for unmarried joint purchasers to allocate the credit
amount to any buyer who qualifies as a first-time buyer, such as if a parent jointly purchases a home with child.
There are also rules about ownership of vacation or rental properties not used as a principal residence.
How is the amount of the first time home buyer tax credit determined?
The tax credit is equal to 10% of the purchase price of your new home up to a maximum of $8,000 but there are income limits.
So, you need to speak right away with a competent Sarasota, Bradenton or Venice Realtor to see if you do qualify.
Who qualifies as a existing homeowner / move-up / repeat buyer for up to the $6,500 credit?
The law defines a tax credit-qualified existing or "move-up" home buyer as a person
who has owned and resided in the same home for at least five consecutive years of the eight years prior to the purchase date of the new home.
For married taxpayers, the law tests the home ownership history of both the home buyer and his or her spouse.
That is, both spouses must qualify as long-time residents, with at least five years of principal residency for each.
They do not, however, have to purchase a home that is more expensive than their previous home to qualify for the tax credit.
How is the amount of the tax credit determined?
The tax credit is equal to 10% of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit.
And, yes, there are income limitations. If your income is above the limit, you may, however, still qualify for a partial credit.
So, yes, you do need to speak with a competent Sarasota Realtor to see if you truly qualify.
If you are still confused about whether you are eligible for either of these two home buyer tax credits, contact a competent Sarasota Realtor immediately.
A Realtor experienced in dealing with these types of situations, like Bob Henley, Sarasota Realtor can tell you after just a brief conversation whether or not you qualify.
But time is getting really short so its definitely "Time to Get Moving.
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