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In recent headlines, you may have heard that The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers. In addition, Congress recently created a new $6,500 tax credit for long-time homeowners. Now is a perfect time to take a closer look at these tax credits if you own a home or are looking to purchase. First-Time Homebuyers First-time homebuyers still have an opportunity to take advantage of the $8,000 government tax credit if they have not owned a home within the past 3 years. The tax credit does not require a repayment like grant programs if all the criteria is not met, and it is available for couples with a gross annual income of less than $225,000 and individuals making less than $125,000. Previously, the limits were $150,000/$75,000. However, if the buyer sells the home or if the residence ceases to be used as a primary home after three years of the initial purchase, the buyer may have to repay the funds received to the U.S. Government. If you are looking to purchase, a binding contract must be secured by April 30, 2010, allowing 60 days to close on the expiration date of June 30, 2010. Current Homeowners Current homeowners are now eligible for a $6,500 tax credit to purchase a home. If you have lived in your primary residence for at least five concurrent years out of the past eight, you may qualify. Similar to the restrictions for first-time homebuyers, the tax credit does not require repayment, is available for couples with a gross income of less than $225,000 and individuals making less than $125,000, and is limited to homes priced at $800,000 or less. Buyers must also secure a binding contract by April 30, 2010, allowing 60 days to close by the expiration date of June 30, 2010. When you submit your tax return, attach a copy of the settlement statement you received at closing. Check with the IRS or your tax adviser to confirm what additional documentation may be needed. · Apply the credit to your 2009 tax return, filed on or before April 15, 2010, · File an amended 2009 return; or · Apply the credit on your 2010 return, filed on or before April 15, 2011.
Which properties are eligible? You can apply the credit to primary residences, including single-family homes, condos, townhomes, and co-ops. Do I need to repay the tax credit? No, not if you occupy the purchased home for three years or more. However, if the property is sold during this three-year period, the full amount of the credit will be recouped on the sale.
Either way, if you’re a first-time homebuyer or a current homeowner looking to move or purchase another home, you can benefit from The Worker, Homeownership, and Business Assistance Act of 2009. If you're ready to get started, apply here, or our Mortgage Loan Officer, Susan Stromquist, is available to help. She can be reached directly at 678-553-5379. Back to Top |
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