The newly extended and expanded Homebuyer Tax Credit gives you another good reason to make a move now.  But, time is of the essence.  You’ll need to sign a purchase agreement for your next home by April 30 and then close no later than July 1, 2010 .

 
 

Here are some quick highlights for people who already own a home:

  • You can earn up to a $6,500 tax credit
  • You must have lived in your home for 5 consecutive years within
     the past eight years.
  • Your income can be up to $125,000 for a single taxpayer or
    $225,000 for joint filers.
  • The home you purchase must have a final sales price of under
    $800,000 and be your primary residence.

And, if you’re planning to buy your first home, here’s a summary
of the program:

  • You can earn up to an $8,000 tax credit.
  • You may not have owned a home for the past three consecutive years.
  • Your income can be up to $125,000 for a single taxpayer or $225,000 for joint filers.
  • The home you purchase must have a final sales price of under $800,000 and be your primary residence.

It’s hard to imagine a better time to make a move to your next home. The Homebuyer Tax Credit, very low interest rates, and homes selling quickly at good prices, just can’t last.   

Review the chart below for more information, and then give us a call at 808-597-5550 to discuss if this is your time to act.
 
FEATURE
January 1 - November 30, 2009
Rules as Enacted February 2009
Rules as Enacted November 2009
First-time Buyer
Amount of Credit
$8000
($4000 married filing separate)
$8000
($4000 married filing separate)
First-time Buyer
Definition for Eligibility
May not have had an interest in
a principal residence for 3 years
prior to purchase
Same
Current Homeowner
Amount of Credit
No Provision
$6500
($3250 married filing separate)
Effective Date
Current Owner
No Provision
Date Enactment
Current Homeowner
Definition for Eligibility
No Provision
Must have used the home sold or being sold as a principal
residence consecutively for 5 of the previous 8 years.
Termination of Credit
Purchases after November 30,2009.
(Becomes April 30,2010 on
Date of Enactment)
Purchases after April 30, 2010
Binding Contract Rule
None
So long as a written binding contract to purchase is in effect on
April 30, 2010, the purchase will have until July 1, 2010 to close.
Income Limits
(Note: Increased income limits are effective as of date of
enactment of bill)
$75,000 - Single
$150,000 - married
Additional $20,000 phase out
$125,000 - Single
$225,000 - Married
Additional $20,000 phase out
Limitation on Cost of Purchased Home
None
$800,000 Effective Date of Enactment
Purchased by a Dependent
No Provision
Ineligible Effective Date of Enactment
Antifraud Rule
None
Purchaser must attach documentationof purchase to tax return

Information in this flyer is not to be construed as legal or tax advice. SOURCE: National Association of REALTORS®
For complete information and other guidelines, talk to a Coldwell Banker Pacific Properties Sales Associate.