Home Buyer Tax Credit Extended & Expanded!

The United States Congress passed a new economic stimulus bill that was signed into law by President Obama on Friday, November 6, 2009. The law extends the Tax Credit for First Time Homebuyers of 10% up to $8000 that was set to expire on December 1st, 2009.  Contracts must be binding by April 30, 2010 and closed by June 30, 2010.  The new law expands the Tax Credit for qualified Repeat Homebuyers up to $6,500.

The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase. The $6,500 tax credit is for repeat homebuyers.  Buyers must have lived in their current home for 5 of the last 8 years and live in the new residence for 3 years to avoid repayment of the tax credit. The tax credits does not have to be repaid provided the buyer meets all the qualifications The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000 for first time buyers, $6,500 for repeat buyers. Contracts must be binding by April 30, 2010 and closed by June 30, 2010. Single taxpayers with incomes up to $125,000 and married couples with incomes up to $250,000 qualify for the full tax credit.

Home Buyers have several options to apply the credit.  They may choose to have their withholdings adjusted in 2009.  They may amend their 2008 tax return to apply the credit.  They may apply to their 2009 tax returns.

To view information from the IRS website, please click - http://www.irs.gov/newsroom/article/0,,id=204671,00.html?portlet7. This website sponsored by the NAHB provides excellent information and Frequently Asked Questions that may be useful in speaking with your clients and customers - FederalHousingTaxCredit.com
 
$14,000 Free Loan From Georgia Dream NSP Program
The Georgia Department of Community Affairs also provides a $14,000 Free Loan Program with the Georgia Dream NSP program.  This Neighborhood Stabilization Purchase program provides buyers of designated foreclosures a $14,000 secondary loan that is forgivable over time.  This program is currently over-subscribed with 132 reservations on a waiting list.  Additional funds may become available.  Stay tuned for details.
 
Federal Energy Tax Credits
The Federal government also provides a significant list of Energy Tax Credits for the purchase of energy efficient products including windows & doors, HVAC, water heaters, hybrids cars and more.  Sellers or buyers may now invest in items that provide both tax relief and long-term monthly savings as energy prices are expected to rise.
Click Here for details.