Home Buying Tax Credit A Good Idea
The federal income tax credit has been extended and expanded to now include first time homeowners. Those who wish to “move on” after 5 years of living in their current property, as well as first-time homebuyers are avidly buying tax credit.
Approximately 2 million people have taken advantage of the opportunity that the home buying tax credit provides in 2009. According to The National Association of Realtors News Release, dated 11/5/09, already added to the general economy resulting from the bill is an estimated $22 billion.
There are income limits for this plan. Income limits at this juncture are $125,000 for single persons, $225,000 for married couples this also includes a $20,000 phase out of the credit for both. The hope is that this substantial $8,000 tax credit will help stimulate movement in the real estate sector and assist would be home owners into a new home in our current market. There are income limits for this plan.
Available for any first time homebuyers, even web hosts like us here at WorldPace, is an $8,000 tax credit. This is for those who have not owned a home in the last three years. There will be no future extensions so the federal government is urging all qualified homebuyers to take action and have a written, binding contract in hand. The deadline is April 30, 2010 and closing is expected to take place before June 30, 2010.
Also included in this opportunity are homeowners who have lived in a current home for at least five consecutive years of the last 8 years. These individuals can receive up to a $6,500 tax credit.
To take advantage of this opportunity, contact your tax professional or the professionals at Coldwell Banker.com.