NAR Brief on Tax Credit as of 11-09

BREAKING NEWS!


The great news is that the First-time Buyer Credit has been extended to April 30, 2010. Also, the closing doesn't have to happen by that date, rather there must be a ratified contract by 4-30-10 and that it closes on or before July 1, 2010. All other conditions still apply on income limits and eligibility. (see previous blog)

NEW! One expansion of the legislation we didn't plan on now includes current home owners who may be eligible for a tax credit of up to $6,500 or $3,250 if married and filing separately. The buyers must have been owners of a principal residence for 5 consecutive years of the previous 8 years.

Income limits for existing home owners are higher than for first-time buyers, with a limit of $225,000 married, and $125,000 single. The cost of the new house being purchased, however, can't exceed $800,000, and you'll have to document your purchase with your tax return. The same condition applies on timing, there must be a ratified contract by 4-30-10 and that it closes on or before July 1, 2010.

Note: Don't wait until the end of June to close, you could be out of luck finding a title company or real estate lawyer who will have an opening the end of June.