In its continuing efforts to salvage and re-start the American Economy Congress passed new legislation in November.
Congress passed an extension to the first time home buyer tax credit. The first time home buyer tax credit has been extended to new contracts signed by April 30, 2010 that close no later than June 30 2010 to qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase. The amount of this credit is $8,000 or 10% of the home purchase whichever is less. To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
Congress expanded the home buyer credit to included current home owners purchasing a home with new contracts signed by April 30, 2010 that close no later than June 30 2010 who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight. The amount of this credit is $6,500 or 10% of the price of the home purchased whichever is less.
Individuals contemplating using the tax credits – why wouldn’t you – should check with your tax adviser or call the Internal Revenue Service at (800) 829-1040.
Two special provisions were built into the bill’s extension for Armed services members, as well as intelligence service and Foreign Service: Personnel, who are on active duty and out of the U.S. for 90 days during any part of 2009, get an additional year to buy their homes, to May 1, 20ll and the other benefit is a waiver on the time of occupancy of the home purchased with the tax credit. Non-Military Homebuyers who purchase their home using the tax credit must use that home as a principal residence for a period of no fewer than three years, or must forfeit the entire credit. Military, intelligence and Foreign Service members do not have to repay the credit if they have to sell their home after fewer than three years occupancy due to official business.
There is an income limit to the program single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.
If you or anyone you know is thinking of buying or selling a home now is a great time to call the REALTORS at R. H. Thackston & Company at 603.357.2121 or visit us on the web at www.Thackston.com