Good News Annapolis: Uncle Sam Extends the First-time Home Buyer Tax Credit
November 17th, 2009 Categories: Buyers, Real Estate News
Not Only That…He’s Added a Move-Up/Repeat Home Buyer Tax Credit That Should Provide Some Stimulus to Mid-Range Homes, Too
It’s official: after months of rumors, crossed fingers and speculation, the $8,000 First-time Home Buyer Tax Credit has been extended.
Has the credit helped? Sure it has. We’ve worked with many first-timers over the last few months who’ve taken advantage of this free money. And if you don’t believe me, talk to anyone who works for a title company: the settlements scheduled for late November – November 30 was the “old” deadline for the credit – are stacked up like jets waiting to land at O’Hare on a Friday afternoon.
Some Highlights About the “New” $8,000 Credit
- The credit applies to homes purchased on or after January 1, 2009 and on or before April 30, 2010. In cases where a binding sales contract is signed by April 30, 2010 a home purchase completed by June 30, 2010 will qualify.
-For homes purchased after November 6, 2009 and on or before April 30, 2010 single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
The $6,500 Move-Up Tax Credit
It’s nice to see this tax credit added. Many people who already own a home – and may have lost equity in the last couple of years – have been feeling as if Uncle Sam should be doing something for them, too. Now he is.
-To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
-The tax credit only applies to homes priced at $800,000 or less.
-The same purchase timeframes apply as above, with one change: a binding sales contract must be signed by May 1st, 2010.
If you have any questions about either of these tax credits, please call us at 410-507-7222. Or email me at KenHaedrich@gmail.com.
Like I said, we’ve been working with a lot of buyers who are jumping on this credit. We understand the unique needs of first-time homebuyers. Best of all, remember that this is a true tax credit and it need not be repaid.
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