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Home Buyers Tax Credit Deadlines

Please REMEMBER the home buyer tax credit deadlines are sneaking up on us extremely quickly. With only 2 months left to get your home purchase into escrow – this is not very long if you have to find a home write an offer get it accepted and open escrow. So just a reminder to all of you out there in the market for a new home – now is the time to call your Real Estate Agent and get the ball rolling.

Whats the deadline?

 To qualify, first time and repeat buyers must have a binding written contract by April 30 2010 and close escrow by July 1st 2010.

How Much Money is Available?

The maximum allowable credit for first-time home buyers is $8,000. The maximum for repeat home buyers, also referred to in the legislation as “long time-residents”, is $6500.

What Properties are Eligible?

The Extended Home Buyers Tax Credit may be applied to primary residences, including single-family homes, condos, townhomes, and co-ops.

How do Buyers get the Benefit?

Home Buyers can apply the credit to their 2009 tax return, filed on or before April 15th 2010; or apply the credit on their 2010 return, filed on or before April 15, 2011.

Who Qualifies?

To qualify as a first-time home buyer, the purchaser or his or her spouse may not have owned a residence during the last three years prior to the purchase. To qualify as a repeat buyer, current home owners must have used the home being sold or vacated as a principal residence for five consecutive years within the last eight years.

Are There Income Limits?

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

content by courtesy of Realtor.org

Call Pam or Joanna TODAY if you have an interest in purchasing a home in San Diego County.

Pam Parton:  760-580-1615                               Joanna Woolley: 760-580-1630