Tax Credits are Now Available for Saddletree and Symphony Homebuyers
With the anticipated extension of the successful first time home buyer tax credit program, Congress gave an unexpected gift to existing homeowners. Now existing homeowners that have owned a personal residence for 5 consecutive years out of the past 8 years, are eligible for a tax credit of up to $6,500.00 on homes valued up to $800,000. And this is a tax credit and not just a deduction, meaning that even if you do not owe any federal income tax you would be eligible for a refund of the $6,500.00. Better yet, some loan programs allow you to “monetize” this tax credit to be used as a type of cash in your purchase transaction.
The tax credit can also be earned buy customers who currently own their own lot and enter into a contract to build a home prior to April 30th, 2010 and obtain a certificate of occupancy by June, 30th 2010. This option will require quick work to complete a home by that June 30th, 2010 deadline.
Some of the rules to this program are that your maximum income is limited to $125,000 for single filers and $225,000 for joint filers, although partial credits are available for income levels up to $145,000 and $245,000 respectively. Contracts have to be written by April 30th, 2010 and closed by June 30th, 2010 but extensions may be available to active duty military who were deployed for a period greater than 90 days in either 2008 or 2009. The credit is limited to 10% of the purchase price.
Although there is reporting requirements to the IRS to obtain this credit, the paper work is fairly simple using documents that you will receive at closing.
The first time homebuyer credit of up to $8000.00 applies to buyers who have not owned a personal residence within the last 3 years. All of the timing and income requirements are the same as for the existing homebuyer credit.
These credit appear to be a once in a lifetime gift from the federal government and should not be overlooked. Contact a Saddletree community specialist to see how these credits can benefit you.
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