In what is an epic win for the real estate industry and upcoming home buyers, the $8,000 tax credit for first time buyers was extended earlier today. The new credits work like this:
What You Should Know About The $8,000 Tax Credit
- Must be in contract by end of April 2010 and close by June 2010 to receive the $8,000 tax credit.
- Must be a first time home buyer.
- Single buyers are eligible if they make up to $125,000 per year, up from $75,000 in the previous credit and couples (who file a joint tax return) up to $225,000, up from $150,000 this past year.
- Maximum purchase price cannot exceed $800,000.
Newly introduced is the $6,500 tax credit for home sellers who have occupied their homes as a primary residence for five consecutive years within the past eight years.
What You Should Know About The $6,500 Tax Credit
- Maximum purchase price cannot exceed $800,000.
- If you sell your new home purchase or cease to use it as a primary residence within three years of purchasing you must repay the $6,500 tax credit. [Source]
- Must purchase a home by end of April 2010.
What do you think of the new and improved home buying tax credit? Will it be a boon to the real estate industry or end up killing sales for 2011?
Be sure to consult with your accountant/tax professional to learn more about the pros/cons and your eligibility for the new tax credit.
Great News. I think the first-time home-buyer credit is a great example of funding that’s helped to stabilize the housing market and should be extended.
I think the extension of the tax credit is a huge blow to economy as a whole. Buyers should not be being buying because of a tax credit.
Josh,
Definitely a smart move. This should give us a nice boost going into the new year.
Thanks for the update!
Gerrid