Monday, November 9, 2009

$8000 Home Buyers Tax Credit Extended and Expanded

$8000 Home Buyers Tax Credit Extended and Expanded
In the past 11 months I have been working with a lot of First Time Home Buyers to purchase their home in the Austin area. They have had some pretty good incentives like the $8000 tax credit, historically low interest rates and in some areas inflated inventory. The credit was thought to be coming to an end as of December 1, 2009.

On November 6th, the president signed the Worker, Home ownership, and Business Assistance Act of 2009. One of the major components of this act extended and expanded the $8000 Tax Credit for Home Buyers. Previously, home buyers that purchased a home between 1/1/2009-11/30/2009 would be eligible for a tax credit of up to $8000 if they met certain criteria. Under the new expanded guidelines, even more buyers are eligible for a credit.

The new Act breaks down in two major tax credits for home buyers with similar yet slightly different requirements.

$8000 First Time Home Buyer Tax Credit

  • Purchaser is a First Time Home Buyer (or has not been on title for a principle residence for 3 years before the purchase.)
  • The tax credit is equal to 10% of the purchase price up to $8000
  • Buyer may purchase home up to $800,000 and get the credit.
  • Income levels have expanded to include single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000.
  • The home must be "under contract" on or before April 30,2010 and must close between November 6, 2009 and on or before June 30,2010.
The Act also includes a new credit for repeat buyers of homes-

$6500 Repeat Home Buyer Tax Credit
  • Purchaser must have owned and lived in their previous home for five consecutive years out of the last eight years.
  • The tax credit is equal to 10% of the purchase price up to $6500
  • Buyer may purchase home up to $800,000 and get the credit.
    Income levels include single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000.
    The home must be "under contract" on or before April 30,2010 and must close between November 6, 2009 and on or before June 30,2010.
This is great news for those home owners that are considering "moving up." In areas that have homes appealing to first time home buyers, this is an amazing opportunity for home owners to sell their home to a buyers that have a number of incentives (low interest rates, $8000 tax credit) and purchase another home to receive a $6500 tax credit for themselves.

If you are considering a move-up to take advantage of this tax credit, contact me today and ask for details about my "move up" special that will reduce your out of pocket expenses when selling your home.

Posted by Brian W Martin REALTOR for The Pinnacle Group of Keller Williams that loves to help people save money when buying or selling their home in Austin, TX

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