Congress extends the Real Estate Tax Credit - and Expands it!

Posted by Janet Burns at 11/9/2009 9:54 AM
Categories: Phoenix Real Estate,Real Estate,General
Tags: Real Estate 85044 Real Estate 85045 Phoenix Real Estate ahwatukee Homes 85048 Real Estate 85048 Ahwatukee Real Estate homes 85045 Homes 85044
The tax extension has been signed and extended through June.  It is effective as of now. Here are the facts:
 
1.       $8000 goes to buyers who have not owned a home in the last 3 years
2.       $6500 goes to buyers that are moving up and have lived in their current home 5 of the last eight years
3.       All transactions must close by June 30th  and have a fully accepted contract by April 30th
4.       Income limits are as follows: Single buyers, no more than $125,000 per year, married couple, no more than $225,000
 
The following are scenarios to give you examples:
 
• Harry owned a home in 2001 and 2002 but sold it to relocate for a job. He would qualify for the $8,000 first-time-buyer credit because he has not owned a home in the past three years.
• Sue purchased a home in 2004 and has lived there since. If she decides to buy a new home, she would qualify for the $6,500 tax credit because she has lived in the same residence for five consecutive years in the past eight.
• Jane purchased her home in 2002, lived there for five consecutive years before she rented it out in 2007. She would qualify because she was an owner/occupier for at least five consecutive years in the past eight.
• Mark purchased a home in 2006 and lived there for the past three years. He would not qualify because he is neither a first-time homebuyer nor someone who lived in the same primary residence for five consecutive years out of the past eight.

If you have any questions , or know someone who could benefit from this program, please give me a call.  This program has been hugely popular, and is responsible for a lot of the home sale resurgence in Phoenix right now.

 

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