Market Reports
First Time Home Buyer Tax Credit
November 10, 2009 by Blogging Agent · Leave a Comment
Looking to buy your first home? Wondering how you can afford it?
Home Buyers received great news last week when the government extended and expanded the First Time Home Buyer Tax Credit. This program was set to expire in December and has now been extended until Spring 2010.
From the IRS’s website:
“New legislation, the Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. The new law:
- Extends deadlines for purchasing and closing on a home.
- Authorizes the credit for long-time homeowners buying a replacement principal residence.
- Raises the income limitations for homeowners claiming the credit.
Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.
People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009.”
To take advantage of this program, please send me a note or give me a call and we can work out a plan to find you the home of your dreams before time runs out!
Hi! My name is Alison Shuman and I am a licensed Texas REALTOR® with Coldwell Banker United, REALTORS®. I live, work and play in Northwest Austin. I spent years as a technical project manager. Then, to quote one of my favorite movies, I realized it was time to get busy living, or get busy dying. Join me on my journey from Rookie to Pro. Just maybe you'll find something that helps you find your own way HOME.
