Time to Get Moving !!

The Home Buyer Tax Credit Program is About to Expire

Posted April 07, 2010

    The first-time home buyer tax credit, extended and expanded to include existing homeowners expires very soon.

    If you have been considering buying a home or condominium in the Sarasota, Lakewood Ranch or Bradenton Florida real estate market, it's time to contact a competent Realtor® TODAY. You need to get a home purchase contract finalized on or before April 30th or you're going to miss out on the opportunity for to an $8,000 income tax credit if you're a first-time buyer or up to $6,500 if you currently own a home.

    And don't forget that, in addition to having a home purchase under contract (that means signed by both the buyer and the seller) by April 30, you must also close on the sale by June 30, 2010.

    Who qualifies as a "first-time buyer" for up to an $8,000 credit?
The law defines a “first-time home buyer” as one who has not owned a principal residence during the 3-year period prior to the purchase. For married taxpayers, the law tests the home ownership history of both the home buyer and his/her spouse.

    If, for example, you have not owned a home in the past 3 years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the tax credit. However, there are exceptions. As an example, there is a possibility for unmarried joint purchasers to allocate the credit amount to any buyer who qualifies as a first-time buyer, such as if a parent jointly purchases a home with child. There are also rules about ownership of vacation or rental properties not used as a principal residence.

    How is the amount of the first-time buyer tax credit determined?
The tax credit is equal to 10% of the home’s purchase price up to a maximum of $8,000 but there are income limits.

    So, yes, you need to speak with a competent Sarasota Realtor to see if you do qualify.

    Who qualifies as a existing homeowner / move-up / repeat buyer for up to the $6,500 credit?
The law defines a tax credit-qualified existing or "move-up" home buyer as a person who has owned and resided in the same home for at least five consecutive years of the eight years prior to the purchase date of the new home. For married taxpayers, the law tests the home ownership history of both the home buyer and his or her spouse. That is, both spouses must qualify as long-time residents, with at least five years of principal residency for each. They do not, however, need to purchase a home that is more expensive than their previous home to qualify for the tax credit.

    How is the amount of the tax credit determined?
The tax credit is equal to 10% of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit. And, yes, there are income limitations. If your income is above the limit, you may still qualify for a partial credit.

    So, yes, you do need to speak with a competent Sarasota Realtor to see if you truly qualify.

    If you are still confused about whether you are eligible for either of these two home buyer tax credits, contact a competent Sarasota Realtor immediately. A Realtor experienced in dealing with these types of situations like Brian Ward can tell you after just a brief conversation whether or not you qualify. But time is short so its definitely "Time to Get Moving.

      For a permanent home, vacation getaway or an investment property, the Sarasota real estate market, with its recent price correction, is hard to beat.  I invite you to request my free Sarasota Real Estate Package or call me directly on my cell phone at 941-228-2321 for more immediate service.