There's wonderful news for consumers considering buying a home! Congress has recently passed new legislation, as a part of the strategy for energizing the U.S. real estate market, that makes the Federal tax credit of up to $8,000 now available to even more first-time buyers. Also, selected individuals who currently own a home and would like to purchase a new one may also be able to obtain a Federal tax credit totaling up to $6,500.
The Extended Home Buyer Tax Credit extends and enhances the existing law that runs out on November 30th. Both new and move-up buyers can now benefit from the new tax credit. Needless to say, this is over and above today's historically low home loan interest rates.
Here are the new key provisions:
* The first-time buyers' $8,000 has now been extended through April 30th, 2010. * Current homeowners are now eligible for a $6,500 tax credit, provided they have lived in the home they are selling as their principal home for at least five straight years within the last eight years. * Income limits for qualifying home buyers were increased to a range of $75,000 to $125,000 (for single buyers) and a range of $150,000 to $225,000 for couples. * Time has been added to make allowance for closing the home purchase. On condition that they have a ratified contract by April 30, they will then have until the 30th of June, 2010, to close the purchase. * In order to qualify, the purchase price of the home has to be $800,000 or less.
The program works as follows:
* Tax credits grant a dollar-for-dollar payment of taxes owed and are available as a refund. The amount of the tax credit will be first applied to any tax liability for the year of purchase. Subsequently the amount remaining will be paid to the buyer. (For example a first-time buyer who owes $2000 in taxes would receive a payment of $6,000). * Any single-family residence purchased to be used as a primary residence (including condominiums, co-ops) will qualify if it is purchased by the end of April, 2010 and closed by the end of June, 2010. * The full amount of the credit may be claimed by individuals who have an adjusted gross income of no more than $125,000 or $225,000 on a joint return. Above those incomes, the amount of the tax credit drops until the maximum limit is reached - $145,000 for individuals or $245,000 of joint income.
Author Resource:
Jim Navary has been a freelance writer and researcher for more thirty years covering a wide range of topics. He is also a licensed real estate salesperson in the Commonwealth of Virginia specializing in real estate in the Tri-Cities area of Virginia and, in particular, Fort Lee, Virginia, area properties for sale.
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