What you need to know about the first-time home buyer tax credit extension

If you’ve been waiting and hoping that the federal government would extend the first-time home buyer tax credit, your patience has paid off. The bill, which was set to expire on November 30th, provides a tax credit of $8,000 to home buyers who have not owned their primary residence for at least 3 years.

ADDITIONALLY…

Now home owners who have lived in their primary residence consecutively for five of the past eight years are also eligible for a tax credit of $6250 if they buy a new home.
The current income limits to get the full tax credit are $75k for a single person and $150k for a married couple. With the new bill, income limits have been raised to $125k for a single person and $225k for a married couple. The purchase and sale agreement must be signed by April 30, 2010 and the property must change hands by July 1, 2010. The cost of the home must be less than $800k.

The new bill also adds an anti-fraud rule. Buyers must attach documentation of the purchase to their tax return. To see a chart with a comparison of old and new tax credit ruling, click here.

The extra money from tax credits can help finance the little changes that a new homeowner wants to make the house their own or can be used toward the down payment. Every little bit helps in these economic times.

The team of professional agents at Phoenix Realty can help you find that perfect home and ensure that you get all the tax credits and incentives possible. If you’re not sure whether this is the right time to move, we’re here to help. We’ll do a free appraisal of your existing home for both sales and rental potential and help work through the pros and cons of your various options. We’re also there to help you find your next great home. It’s easy when you have the right help!

Friday, November 13th, 2009 Boston, Boston Real Estate, Real Estate News, Tax Credit, Uncategorized

TAGS: Federal Government Tax Credit, First Time Home Buyers

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