First Time Home Buyer Tax Credit Information
ATTENTION! Update: 11-06-2009
The tax credit will be extended through April 30, 2010!
President Signs Federal Tax Credit Extension
President Obama on Friday, Nov. 6 signed a bill extending and expanding the Federal Tax Credit for Home Buyers. The bill passed the U.S. House of Representatives yesterday and the U.S. Senate late Wednesday.
The tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to receive a tax credit of up to $8,000, while existing homeowners will receive a reduced credit of up to $6,500. Existing homeowners will be eligible for the $6,500 if they have lived in their current residences for at least five years. The bill also will increase the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers, to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000.
Under additional provisions in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The bill maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.
Courtesy of California Association of Realtors
Time is up! Federal Credit may be available...hurry...
First-time homebuyers may be able to take advantage of a tax credit for homes purchased in 2008 or 2009. The credit:
- Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
- Applies only to homes used as a taxpayer's principal residence.
- Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
- Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
- More IRS Info...
Learn How To Take advantage of the Federal Program
Contact one of Our Agents Today!
Informational Only, State Time is UP:
$100 million new home tax credit nearly gone
The Franchise Tax Board (FTB) recently announced that the $100 million allocated by the state in new home tax credits will soon be gone. The FTB has received more than 9,800 applications, claiming nearly $95 million as of June 17, and plans to accept 12,000 applications to allow for duplicates, revisions, or invalid applications.
This tax credit is available for qualified buyers who, on or after March 1, 2009, and before March 1, 2010, purchase a qualified principal residence that has never been occupied. The buyer must reside in the new home for a minimum of two years immediately following the purchase date.
To apply, an application for new home credit must be completed by the buyer and seller within one week after the close of escrow and faxed by the escrow person to the FTB at (916) 845-9754.
The FTB will continue to report the certificates issued on a weekly basis until the full $100 million has been allocated. FTB expects to complete processing all certificates in August. Each applicant will receive a notification indicating the amount of credit allocated or denied.
Tax Credit Information
The first time home buyer tax credit was enacted by Congress in 2008 granting a $7500 tax credit for an incentive to first time home buyers to go ahead and purchase a home.
In 2009 the credit was increased to $8000 along with several improvements. The revised credit applies to purchases made after January 1, 2009 and before December 1, 2009.
Read the Frequently Asked Questions Here...
Learn How To Take advantage of the Program Contact one of Our Agents Today!
First Time Home Buyer Tax Credit Brochures & Information
Download the Frequently Asked Questions...
National Association of Realtor's (NAR) Presentation...
Download the 2009 Changes...
Download the Tax Form...
For more information on the first time home buyer tax credit visit NAR...
Information courtesy of NAR - The National Association of Realtors
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