April is the Time to Act
Buyer tax credits extended, expanded, and exciting
By Mark Talis |
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So, you didn't buy a house last year. You didn't have the onions to pull the trigger. It's okay; dry your eyes. The government has decided to help you out, all you have to do is reach out and grab the extension. (Big banging drums like just before they revealed King Kong, not like Joe vs. the Volcano although, that movie did have Abe Vigoda.)
Mark Talis
For those of you that have been hiding under a rock, stumbling around in a holiday/football season stupor, or sharing a small cell with a large man named Bubba: the Homebuyer Tax Credit was extended!
Yes, the first-time homebuyer tax credit was set to expire last November . . .
Yes, they extended it before the deadline . . .
But no, we haven't heard whether they are going to extend it again.
There are some twists and changes that are new to the extended version of the credit. Did you know that there is also a $6,500 credit for buyers that have lived in their home for five consecutive years out of the last eight? I'm going to try and break these credits down for you.
We are dealing with two credits for two different groups of people here: first-time buyers and prior owners. I'm just going to give you the big stuff. As always, please consult your real estate agent for any changes or details that may apply specifically to you.
1. Deadline: The contract must be signed by April 30, 2010.
2. Fun Fact: The purchase must be a primary residence; this is not going to be the start of your tenement empire.
3. Income Limit: $125,000/year for individuals, $225,000/year for couples.
4. Fun fact: You must live in the purchase for a minimum of the years; if you move, you have to pay the credit back.
5. First timers, you are eligible for a maximum credit of $8,000, or 10 percent of the sales price. Prior owners, you can get up to $6,500 if you lived in your prior home five consecutive years out of the last eight.
Those are the bullet points. Looks pretty juicy, doesn't it? I mean, $8K, $6.5K, it's all better than Special K. As of now, you've got until April 30th to make a decision. Rates are still very good. There are plenty of quality homes available for sale. Oh, and there is this gift on the table. If you are on the fence as to making a purchase, I encourage you to factor the tax credit into your equation. This is new territory for all of us and no one knows what will happen at the end of this extension. My guess is real estate sales in May are going to be slower than a herd of tortoises stampeding through peanut butter.
Mark Talis
Gledhill Robbins & Talis Group
Real Living HER
730 S High St.
www.marktalis.com
(614) 554-6355
Originally Published: March 1, 2010
