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8,000 Tax Credit Extended & Expanded:
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:
- Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
- Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
Who Qualifies for the Extended Credit?
- First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
- Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
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.
Which Properties Are Eligible?
The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.
How Much Is Available?
The maximum allowable credit for first-time home buyers is $8,000.
The maximum allowable credit for current homeowners is $6,500.
How is a Buyer's Credit Amount Determined?
Each home buyer’s tax credit is determined by tow additional factors:
- The price of the home.
- The buyer's income.
Price
Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.
Buyer Income
Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.
These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer Tax Credit.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.
Can a Buyer Still Qualify If He/She Closes After April 30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.
If you're considering a Home Purchase then now is the time to take action! Check out the "Resource Center" in the left-hand column of this newsletter for an interactive online tool that can help answer just about any mortgage or real estate related question.
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Brian Tracy Inspirational Article of the Month:
Five Steps to Personal Power
Brian Tracy is a world-renowned personal and professional development coach that has helped millions of people achieve their goals and develop a positive mindset. Brian will be contributing to our newsletter every month by providing us with an article to help inspire you, our clients, to reach higher and achieve more than ever before.
Weird Article of the Month:
Advances in Brain Microsurgery Allow Scientists to Control the Thoughts of Fruit Flies!
Scientists in England and Toronto have been able to rewire the brains of fruit flies to harbor false memories and fears, and even alter their sexual preference. Be sure to stay away from the mad fruit fly scientists… sure it’s only fruit flies for now, but you might be next!
Click Here to Read the Full Article by UExpress.com
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Interesting Articles of the Month:
Man Gets Caught Crossing Border with Exotic Reptiles Strapped All Over His Body!
A man was caught by Norwegian customs carrying a tarantula in his bag, and a further 14 royal pythons and 10 albino leopard geckos taped to his body, media reported Monday.
Space Hotel Says It's On Schedule to Open in 2012
A company behind plans to open the first hotel in space says it is on target to accept its first paying guests in 2012 despite critics questioning the investment and time frame for the multi-billion dollar project.
Tree "Mummies" Found and Traced Back to Viking Era
"Mummified" trees—remarkably preserved, but not petrified, for centuries that date back to the time of the Vikings have been found in a Norwegian forest, scientists announced.
YouTube.com Videos of the Month:
Incredible Moments Caught On Camera
This selection of videos offers some of the most incredible moments you can imagine caught on film. Enjoy and be sure to share with family, friends and co-workers!
Delicious Recipe of the Month:
Thanksgiving Special - Sweet Potato Casserole!
Mmmmmm… Sweet potatoes topped with creamy marshmallows! This warm, fluffy treat is sure to be a big hit at any holiday party. Be sure to share this lovely recipe with family, friends and co-workers!
Click Here for the Full Recipe by Allrecipes.com
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Dumb Criminal Story of the Month:
Classic Bank Robber Story – Hysterical!
This bank robber was definitely in over his head when deciding on whether to rob a Bank of America or a Wells Fargo. Be sure to share with family, friends and co-workers!
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