New Tax Credit Extensions for Home Buyers

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Miami property tax informationThere are New Tax Credits for Home Buyers. Some good news for a change! Congress approved the extension of the $8,000 federal first-time home buyer tax credit, and President Obama signed the law into effect on November 9, 2009. The tax credit was supposed to expire on December 1, 2009, and has now been extended through April 30, 2010.

Even better, there has been an addition to the law allowing existing homeowners who want to move up or down to another home to receive a $6,500.00 tax credit, so long as they have owned and lived in their previous home for five consecutive years out of the last eight years.

Whether you are looking for Miami Beach real estate, South Beach real estate, Sunny Isles Beach real estate, Bal Harbour real estate, or Golden Beach, you should take advantage of these great tax credits, the current low-interest rates, and the affordable prices these communities have to offer.

Those of you who have been sitting patiently on the sideline waiting no longer have any reasons to delay the purchase of your Miami Beach and surrounding area luxury condos and homes.

Here are some highlights of the new tax credit law:

First-Time Home Buyer Credit

  • First-time home buyers who purchase a home on or after January 1, 2009, and before April 30, 2010, are eligible to receive an $8,000 tax credit. If your purchase and sales contract was signed on April 30, 2010, and you complete your transaction by June 30, 2010, you will qualify for the credit.
  • The IRS definition of a first-time home buyer is a buyer who has not owned a principal residence for three years before their purchase.
  • The tax credit does not have to be repaid.
  • The tax credit equals 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 that are primary residences. No investment properties or second homes 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.

Long-Time Residences, Same Residences & (Move Up/ Down) Buyers

  • 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.
  • The tax credit equals 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 that are primary residences. No investment or second homes are eligible.
  • The credit is available for homes purchased after November 6, 2009, and on or before April 30, 2010. If your purchase and sales contract was signed on April 30, 2010, and you complete your transaction by June 30, 2010, you also will qualify for the credit.
  • Single taxpayers with incomes up to $125,000. Married couples with incomes up to $225,000 qualify for the full tax credit.

To avoid fraud, the IRS will require all buyers’ copies of the HUD-1 closing statement.

Military Buyers

If a Military member is deployed outside of the United States for at least 90 days between December 31, 2008, and May 1, 2010, the tax credit is extended on purchases to or before April 30, 2011.  If a purchase and sale contract was signed on April 30, 2011, the transaction must close on or before June 30, 2011, to qualify for the tax credit.

The new law is expected to further boost and help strengthen our recovering real estate market. It benefits buyers, sellers, and the entire real estate industry.

Let’s Go!

Contact me here today for more information, and thank you for reading!