Commentary by Diane Johnson, WCAR: A tax credit to home shop with ...
By Diane Johnson, WCAR president
news@williamsonherald.com
The federal government voted to extend the first-time homebuyers tax credit until April 2010. This tax credit provided first-time buyers with an $8,000 credit to be used toward the purchase of a home. This tax credit had some limitations…and in the new extension, there are changes to the requirements. Just as exciting as the extension is; this new bill also provides existing homeowners with a tax credit for purchasing a new house. This new bill went into effect on Nov. 6, 2009. If you are an existing homeowner who is under contract to go to closing between now and April 30, 2010 and if you meet the criteria, you will be eligible for the tax credit. A contract did not have to be written after Nov. 6, 2009 to make you eligible!
Here are the changes:
• Credit is $8,000 ($4,000 if married and filing separately) for first-time buyers.
• You cannot have owned a principal residence for three years prior to the purchase
• Credit is $6,500 for homeowners.
• Must have lived in an owned home for five consecutive out of the last eight years.
• Must purchase a home by April 30, 2010. There is a binding contract rule in the extension; as long as a contract to purchase a home is written and in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close on the property.
• The income limits have been raised; $125,000 for a single person and $225,000 for a married couple filing jointly. There is a phase out at each $20,000 increment above.
• There is a limit on the purchase price of the home of $800,000.
If you close on a home in 2010, and you are eligible for the tax credit, after you go to closing, you can file an amended return for 2009 to receive the credit and refund from the government. If you close on your home in 2009 and are eligible for the tax credit, you can take the credit when filing your 2009 taxes.
Leadership from WCAR spent last week in San Diego at the National Association of Realtors conference where much of the meeting focused on the regulatory and political changes. It was noted by several panelists, speakers, and industry professionals that this tax credit will not be extended again. This is the last chance to take advantage of this investment opportunity.
If you have time over your holiday weekend and are considering moving, selling, and buying a new home; contact a Realtor to discuss how the tax credit can be a part of your future plans. There is limited time to find your new home; the best time to look is today.
Diane Johnson is the 2009 president of the Williamson County Association of Realtors. She is a Realtor and professional coach with Keller Williams Realty in Franklin.
Posted on: 11/26/2009
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