Updated November 16, 2009
The Homebuyer Tax Credit, due to expire on November 30, has been extended and expanded in an effort to stimulate the housing sector. The new law, effective November 6, 2009, will continue to offer an $8,000 tax credit for first-time home-buyers, and now allows a $6,500 credit for many other home-sellers who purchase.
1. First-Time Homebuyers – $8,000 Tax Credit
o Buyers who have never owned a home
o Buyers who have not owned a home three years prior to the date of the new purchase.
o In the case of married couples, if either spouse has owned a primary residence in the last 36 months, neither would qualify for the credit.
o An individual who has owned a non-primary residence, such as a second home or investment property, is still eligible for the credit.
2. Home-Sellers Purchasing a Home – $6,500 Tax Credit
The tax credit program now gives those who already own a residence some additional reasons to move to a new home.
Tax Credit Requirements and Limitations
o Applies only to homes used as a taxpayer’s principal residence
o Reduces a taxpayer’s tax bill or increases his or her refund.
o If no taxes are owed, the IRS will issue a check for the amount of the tax credit, just like a refund on your taxes.
o Under the old program, the limits were $75,000 and $150,000 respectively.
o Individual tax filers who earn more than $125,000 but less than $145,000 can receive a partial credit. Likewise, joint filers who earn more than $225,000 but less than $245,000 are eligible for a partial credit.
For more information contact your Bella Casa Real Estate Professional:
Bella Casa Real Estate Group
207 NE 19th Street, Suite 100
McMinnville OR 97128
buy. sell. be happy.