Don’t You Love it When You Hear, “Take Advantage of Me” ?
That’s exactly what the recently signed tax credit is screaming!
For weeks, even months, all of us in the real estate industry waiting on pins and needles to see if Congress would extend the ever popular “First Time Homebuyer Tax Credit”. Last week, they did just that, and even sweetened the pot by adding a $6500 tax credit to homeowners who aren’t first time buyers as well as extending the income limits (now set at $225,000 for joint and $125,000 for singles). Even in a lower tax bracket the overall savings on your tax return equal about $13,000 – $14,000! (can you hear the screaming yet??)
Here are a few quick points to keep in mind with the tax credit – but as always make sure you consult your tax preparer!
- Amount of credit – $6500, or $3250 married filing separately
- Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
- Must be “locked in” on a home by April 30, 2010 and closed by June 30, 2010
- Income limits: $125,000 single and $225,000 married (those earning more than this cap can qualify for a partial credit)
- Purchase price limit $800,000
So what are you waiting for – take advantage and buy today!