Tucson AZ Home Loan Info

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REALTOR Cheatsheet: $8,000 Homebuyer Tax Credit Extended & Expanded

REALTORS:  HERE'S THE SKINNY ON THE $8,000 / $6,500 TAX CREDIT FOR HOMEBUYERS. 

 

$8,000. Tax Credit Legislation Extended and Modified

Until the new legislation was signed into law, first time homebuyers could apply for and receive a tax credit in the amount of $8,000. when they purchased a home before the sunset date of November 30, 2009.

The new legislation, signed into law by President Obama on Friday, November 6, 2009

  • extends that date until April 30, 2010 for civilians, and to April 30, 2011 for certain military buyers.
  • increases the income limits so that millions more can qualify for the tax credit, and
  • enacts a reduced tax credit of $6,500 for move-up buyers who are not first time homebuyers.

Extended Timeframe

The existing sunset date established by the Housing & Economic Recovery Act of 2008 has been extended to April 30, 2010 for most buyers.

Qualifying members of the military who served outside the borders of the United States at any time during the period from 1/1/2009 to 4/30/2010 will have an extra year to apply for the tax credit.

Increased Income Limits

The earlier legislation put caps on income for single buyers at $95,000.  Married buyers filing jointly capped out at $170,000.

The new legislation allows single wage earners to make up to $145,000, and married couples can earn up to $245,000. 

NEW:  $6,500 Tax Credit for Move-up Buyers

The new legislation provides a tax credit incentive for people who are not first time homebuyers.  (A first time homebuyer is defined as one who has not owned a home in the last 36 months.)  You may qualify for this $6,500 tax credit if you owned and lived in your home for five consecutive years out of the past eight.

Who does that help?  Let’s say you sold your home in 2008.  You’re not a first time homebuyer, but if you meet the “five of eight” criteria, you can buy a move-up home and still qualify for the $6,500 tax credit.  Check with your tax professional for advice on your particular situation.

NOTE:  Additional Requirements

There are other rules of eligibility in the legislation.  (This list is not exhaustive, so you’ll want to check with your tax professional.)

  • You can’t buy the home from a relative.
  • You must be 18 or older
  • You cannot be claimed by any other taxpayer as a dependent
  • If you’ve sold a home, and that sale affects your eligibility, you must included the settlement statement (HUD-1) with your tax return.
  • Most buyers (check with your tax professional) must live in the home for a minimum of three years or face a government demand for repayment.

 

Originally published on InvestmentRealEstateCorner.com by Mike in Tucson

 

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I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.
Mike Jones (Tucson Mortgage Company, LLC): Loan Officer in Tucson, Pima County, Arizona
SUNSTREET MORTGAGE
Call me
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(520) 349-9090

 

Comment balloon 14 commentsMike Jones • November 13 2009 04:56PM

Comments

Mike - Solid post that it easy to read. Just shot a link to my buyers that will definitely benefit from this info (especially on the new income limits). Timely for me. Thanks much

Posted by Claude Cross, Charlotte NC Homes For Sale (Homes By Cross, Inc. ) almost 11 years ago

Nice work, Mike.  Makes it easy for anyone to understand.

Posted by Jesse & Kathy Clifton, Retired (Jesse Clifton & Associates, REALTORS®) almost 11 years ago

Mike,

Now that it's a done deal lets hope people use it!

You don't have to approve of a program to use it.

Bill

Posted by William J. Archambault, Jr. (The Real Estate Investment Institute ) almost 11 years ago

Mike

Thanks for getting the word out.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) almost 11 years ago

Hi Mike: Good job getting the information out there!

:)

Posted by Matt Listro, Your Credit Repair Expert (National Credit Fixers - Matt Listro) almost 11 years ago

Matt,

Thanks for stopping by to comment.

Lou,

You're welcome. 

Bill,

That's right!

Jesse,

What's the temperature up there in Fairbanks?  Time for a Tucson visit!

Claude,

I'm glad to help; thanks for being the first to comment.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) almost 11 years ago

Great informational post, as usual, Mike.

Posted by Karen Luke, Henry County Real Estate (South Metro Property Management, LLC) almost 11 years ago

Karen,

Thanks for stopping by.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) almost 11 years ago

Mike~  Thank you for taking the time to summarize!

Posted by Pam Richerson almost 11 years ago

Mike,

Thanks for the overview of the extended and expanded tax credit.  Just one question, a home seller that has lived in their current home 5 of 8 do they have to move up in size and $$$ or can they move down in order to right size?

Posted by Don Rogers, Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes (Keller Williams Realty Chesterfield) almost 11 years ago

Mike:

Question for you..... does a 'Move-up" buyer mean the new or second home has to be a substantially higher price than the home they sold?  I'm presuming it does, but how is that determined?

Posted by Joan Snodgrass (Midamerica Referral Network) almost 11 years ago

Mike - this is a great summary. Just shared the link to this on my First Time Buyers Central blog.

Jeff

 

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (eXp Realty of California, Inc.) almost 11 years ago

Jeff,

I'm glad you find it useful.

Joan,

Move up in this market won't likely mean more expensive.  I just funded a loan for a buyer who bought a home nearly twice the size of their previous home, and at a price point about 1/3 less.  Thanks for asking.

Don,

The size and price don't matter; I guess I should have worded it differently.  The point is that they don't have to be a first time homebuyer.

Pam,

You're welcome!  See you on your blog.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) almost 11 years ago

Hello Mike,

Thank you for the terrific summary and on the extended and expanded tax credit.  Great job on yur post!  Have a great weekend!

Chris

 

Posted by Chris Minion (O'Brien Realty) almost 11 years ago

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