Kenneth Bargers Blog

Still Time to Take Advantage of Homebuyer Tax Credit

There’s still time to take advantage of homebuyer government tax credits through The Worker, Homeownership and Business Assistance Act! 

The Worker, Homeownership, and Business Assistance Act of 2009 extends the deadline for qualifying home purchases from Nov. 30, 2009, to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase.

 The maximum tax credit amount remains at $8,000 for a first-time homebuyer – that is, a buyer who has not owned a primary residence during the three years up to the date of purchase.

But the new law also provides a “long-time resident” tax credit of up to $6,500 to others who do not qualify as “first-time homebuyers.” To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.

For all qualifying purchases in 2010, taxpayers have the option of claiming the tax credit on either their 2009 or 2010 tax returns.

Income Limits Rise

The new law raises the income limits for people who purchase homes after Nov. 6, 2009. The full tax credit will be available to taxpayers with modified adjusted gross incomes (MAGI) up to $125,000 individual, or $225,000 for joint filers. Those with MAGI between $125,000 and $145,000 individual, or $225,000 and $245,000 for joint filers, are eligible for a reduced tax credit. Those with higher incomes do not qualify.

New Requirements

Several new restrictions on purchases that occur after Nov. 6, 2009 go into effect with the new law:

• Dependents are not eligible to claim the tax credit.
• No tax credit is available if the purchase price of a home is more than $800,000.
• A purchaser must be at least 18 years of age on the date of purchase.

Source:  Courtesy of Todd Kabel, US Bank and Kenneth Bargers, Prudential Woodmont Realty

February 3, 2010 Posted by kbargers | real estate | $8000 homebuyer tax credit, Brentwood, home buying, homebuyer tax credit, homeownership and business assistance act, kenneth bargers, long time resident tax credit, middle tennessee, Nashville, prudential woodmont realty, tennessee, todd kabel, us bank | Leave a Comment