$8,000 Tax Credit Now Expanded

A Great Deal in Real Estate is Now Better

Note: This is intended to provide an overview only – for specific information or individual concerns, please contact your lawyer, accountant and/or financial advisor.

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The federal income tax credit for homebuyers has been extended and expanded to now include homeowners who wish to “move on” after 5 years of living in their current property, as well as first-time homebuyers.

  • First-time homebuyers, or those who have not owned in the last three years, can receive up to an $8,000 tax credit
  • Homeowners who have lived in a current home consecutively for 5 of the past 8 years can receive up to a $6,500 tax credit
  • There may be no future extensions, so all qualified homebuyers are urged to act and have a written, binding contract by April 30, 2010 (close by June 30, 2010)
  • Income limits are now $125,000 for singles, $225,000 for married couples

According to The National Association of Realtors News Release, dated 11/5/09, the original bill has been credited with helping approximately 2 million people to date, adding an estimated $22 billion to the general economy.

The following chart provides more information:

Feature For First-Time Homebuyers For Current Qualifying Homeowners
Amount of Credit $8,000 ($4,000) married filing separate) $6,500 ($3,250 married filing separate)
Eligibility May not have had an interest in a principal residence for 3 years prior to purchase Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
Termination of Credit Purchases after April 30, 2010 Purchases after April 30, 2010
Binding Contract Rule N/A So long as a written binding contract to purchase is in effect on April 30, 2010 the purchaser will have until June 30, 2010 to close
Income Limits $125,000 – Single$225,000 – MarriedAdditional $20,000 Phase Out $125,000 – Single$225,000 – MarriedAdditional $20,000 Phase Out
Limitation on Cost of Home Purchased $800,000 $800,000
Second Home Purchase N/A Ineligible
Purchase Made by a Dependent Ineligible Ineligible
Additional Requirements Purchaser must attach documentation of purchase to tax return Purchaser must attach documentation of purchase to tax return

Murray Balkcom, GRI, Realtor
SoWal’s Real Estate Guru
www.dreamBIGproperties.com
murraybalkcom@yahoo.com
850-830-2475
Coldwell Banker United, Realtors — Seagrove, FL

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