Friday, November 06, 2009

Obama signs home tax credit extension.

It's finally really here. Of course, this is a little old news, as people have been saying that the tax credit was approved fro the past week. Nothing is in stone until the President signs the bill into law.
It would have been nice if this could be extended to ALL home buyers. This would cause the investors back in the market in droves, and snapping up all the investment homes. Could you imagine buying a rental home for 50,000 and getting back 8,000 of your taxes?
Kind of like when everyone was driving HUMMERS because they could write off the full cost of the vehicle in the first year. I am happy with this extension because personally I have four contracts pending with First time home buyers that were probably not going to close by the deadline. It would have been ugly for all those that were counting on the credit if they couldn't get it.

Here are the highlights
  • The stimulus bill will extend the 8,000 dollar tax credit to First time home buyers from the current deadline of November 30. until May 1, 2010. If you are under contract by

  • April 30, then you will qualify as long as you close by July 1, 2010.
  • "MOVE UP" buyers can now qualify for up to a 6,500 dollar tax credit if they are buying a primary home, and have lived in their current home for at least 5 years. (This is really great, although it would be better if it was for all home-buyers regardless of purpose)
  • All U.S citizens that file taxes are eligible
  • The tax credit has no pay back provisions so that you don't pay anything back over time, and if your taxes are less than the credit you will get a refund back.

Here is the FINE PRINT
  • Home-buyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income is less than $125,000.
  • For married couples filing a joint return, the combined income limit is $225,000.
    Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
  • The credit is not available for single taxpayers whose income is greater than $145,000 and married couples with an income that exceeds $245,000.
  • The maximum price of the home can not exceed 800,000. Bummer..

    When you need a great Realtor in Manatee County please give me a call. I am ready to help.
    Short sale expert, REO-Bank owned, and investment properties

    Joe Murphy
    Coldwell Banker Residential Real Estate