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The Stimulus Tax Credits Expired April 30, 2010
Congratulations to everyone who took advantage of this historic
opportunity!
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2009 HOMEBUYER TAX CREDITS
The Worker, Homeownership, and
Business Assistance Act of 2009 has extended the tax credit of up to
$8,000 for qualified first-time home buyers purchasing a principal
residence as well as a tax credit of up to $6,500 for qualified repeat
home buyers. In a nutshell:
$8,000 First-time
Home Buyer Tax Credit at a Glance
>>
First-time Homebuyers
FAQ's
The $8,000 tax credit is for first-time home
buyers only. For the tax credit program, the IRS defines a first-time home
buyer as someone who has not owned a principal residence during the
three-year period prior to the purchase.
The tax credit does not have to be repaid
unless the home is sold or ceases to be used as the buyer’s principal
residence within three years after the initial purchase.
The tax credit is equal to 10 percent of the
home’s purchase price up to a maximum of $8,000.
The tax credit applies only to homes priced
at $800,000 or less.
The tax credit now applies to sales occurring
on or after January 1, 2009 and on or before April 30, 2010. However, 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 on or after January 1,
2009 and on or before November 6, 2009, the income limits are $75,000 for
single taxpayers and $150,000 for married couples filing jointly.
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 /
Repeat Home Buyer Tax Credit at a Glance
Current Homeowner
= Repeat Homebuyer
>>
Repeat
Homebuyers FAQ's
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 does not have to be repaid
unless the home is sold or ceases to be used as the buyer’s principal
residence within three years after the initial purchase.
The tax credit is equal to 10 percent of the
home’s purchase price up to a maximum of $6,500.
The tax credit applies only to homes priced at $800,000 or less.
The credit is available for homes purchased
after November 6, 2009 and on or before April 30, 2010. However, in cases
where a binding sales contract is signed by April 30, 2010, the home
purchase qualifies provided it is completed by June 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.
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FEATURE |
Jan1 - Nov 30, 2009
Rules as Enacted in Feb'09 |
Dec 1,
2009 - April 30, 2010
Rules as Enacted in Nov'09 |
First-Time Buyer -
Amount of Credit |
$8000
($4000 married filing separate) |
($4000
married filing separate) |
First-Time Buyer -
Definition of Eligibility |
May
not have had an interest in a principle residence for 3 years prior
to purchase |
Same |
Current Homeowner -
Amount of Credit |
No Provision |
$6500
($3250 married filing separate) |
Effective Date -
Current Homeowner |
No Provision |
$6500
($3250 married filing separate) |
Current Homeowner -
Definition of Eligibility |
No Provision |
Must have used the home sold or being sold as a principle
residence consecutively for 5 of the last 8 years |
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Termination of Tax Credit |
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Purchases after April 30, 2010 |
| Binding Contract Rule |
None |
So long as written
binding contract to purchase is in effect on April 30, 2010, the
purchaser will have until July 1, 2010 to close |
Income Limits
(Note: increased income limits are effective as of date of enactment
of bill) |
$75,000 - single
$150,000 -
married
Addtl. $20,000 phase out |
$125,000 - single
$225,000 - married
Addtl. $20,000 phase out |
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Limitation on Cost of Purchased Home |
None |
$800,000
Effective Date of Enactment |
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Purchase by a Dependent |
No Provision |
Ineligible
Effective Date of Enactment |
| Anti-Fraud |
None |
Purchaser must attach
documentation of purchase to tax return |
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>>
First-Time
Buyers FAQ's
>>
Repeat
Buyers FAQ's
If you would like to sit
down for coffee and discuss the Denver Real Estate market, just call me
anytime at 303-520-3179. Anthony Rael, Metro
Brokers Arvada-Northwest offers professional & trustworthy real estate
services to buyers &
sellers throughout the
Denver metro area including
Arvada,
Brighton,
Broomfield,
Denver,
Golden,
Highland/Sloan's Lake,
Highlands Ranch,
Lakewood,
Littleton,
Louisville,
Longmont,
Thornton,
Westminster,
Wheat Ridge, Adams
County,
Denver County &
Jefferson County.
Leverage my life-long
knowledge of the Denver Metro area - from homes, condos, lofts or
investment properties, new homes builders, schools & local amenities to
reliable & trustworthy business partners like mortgage brokers & home
contractors to
maximize
your investment, secure your future and realize the home of your dreams.
>>>>> ARCHIVED INFORMATION PERTAINING TO THE HOMEBUYER TAX CREDITS <<<<<
In an effort to keep up with
the fast-moving changes coming out of Washington, DC to provide stimulus
to the weakened housing market nationwide, I have put together a
collection of documents that will hopefully educate you on what's
happening and how they may affect your ability to buy
a home, sell a home or even avoid
foreclosure in some cases.
The Worker,
Homeownership, and Business Assistance Act of 2009
(above) is the most recent
information. The links below are for tax rebates and tax credit programs
offered in 2008 & 2009.
2009
Housing & Economic Stimulus Plan
$8,000 Tax Credit
Incentive for First-Time Homebuyers
- January 1 - November 30, 2009 - (expired)
2009 Economic Stimulus Package Overview
Click here for
First-time Homebuyer Tax Credit
Frequently Asked Questions
First-time Homebuyers
Homebuyer Down Payment Assistance Programs
2009 FHA Loan Limit Changes
for Colorado
Frequently Asked Questions - Homeowner Affordability & Stability Plan
The
Housing and Economic Recovery Act of 2008
$7,500 Tax Credit for
First-time Homebuyers
- April 9, 2008 - December 31, 2008 - (expired)
Housing and Economic
Recovery Act of 2008
2008 First-Time
Homebuyer $7,500 Tax Credit
First-time Homebuyers
The information on this web site for general
guidance only. The information on this website does not constitute the provision
of legal advice, tax advice, accounting services, investment advice, or
professional consulting of any kind nor should it be construed as such. The
information provided herein should not be used as a substitute for consultation
with professional tax, accounting, legal, or other competent advisers. Before
making any decision or taking any action on this information, you should consult
a qualified professional adviser to whom you have provided all of the facts
applicable to your particular situation or question. None of the tax information
on this web site is intended to be used nor can it be used by any taxpayer, for
the purpose of avoiding penalties that may be imposed on the taxpayer. The
information is provided "as is," with no assurance or guarantee of completeness,
accuracy, or timeliness of the information, and without warranty of any kind,
express or implied, including but not limited to warranties of performance,
merchantability, and fitness for a particular purpose.
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