Tax Credit for Home-Buyers Extended and Expanded (Hoboken, NJ Real Estate)
Many have wondered whether the tax credits that were given to first-time home-buyers in 2008 would be offered again in tax year 2009. It seemed to make sense, since the housing market was still struggling to turn a corner, though there was really no guarantee or assurance that congress would indeed vote to do so.
Buyers and Realtors can breath a breath of relief, as the law extending tax credits was passed in congress by both parties on Nov. 6, 2009. In fact the new tax credit is not only extended but expanded. This is no longer a tax credit offered to first-time home-buyers, but to any repeat buyer.
Here is the important information regarding qualification:
If you are a first time home-buyer you may qualify for up to $8,000 credit. If you are not a first time home-buyer, and already owned a property (move-up buyer) you will qualify, but only up to $6,500, and in order to qualify you would have had to own your residence (same residence) for at least 5 years any time during the last 8 years.
To qualify the home purchase must be signed by 30th of April 2010, and have to close by June30th 2010.
The income eligibility limit is $125,000 for individuals and $225,000 for couples.
Individuals with an income up to $145,000 and couples with an income up
to $245,000 can claim a partial credit.Note that these income limits are the modified adjusted gross
income from the tax return, not actual income. In other words even though you make above the indicated amount you may still qualify after adjustments. Home-buyers can
also claim the credit against their 2008 tax return, which means you
can look at your adjusted income from the tax return you filed this
year and know exactly what your income limit is.
Homes with purchase price of more than $800,000 do not qualify.
Also, the home purchased must be a principal residence. Move-up buyers may
own a second home, but this credit cannot be used to buy a second home.
There are ways to get the credit before tax return date, though that is a bit more involved than the scope of this blog. If you have questions about it though I will be happy to provide you information about it. Simply go to my site http://www.hobnjre.com for my contact or email me at aelroy@HobNJRE.com.