A Great Deal in Real Estate is Now Better

Note: This is intended to provide an overview only - for specific information or individual concerns, please contact your lawyer, accountant and/or financial advisor.

The federal income tax credit for homebuyers has been extended and expanded to now include homeowners who wish to "move on" after 5 years of living in their current property, as well as first-time homebuyers.

First-time homebuyers, or those who have not owned in the last three years, can receive up to an $8,000 tax credit Homeowners who have lived in a current home consecutively for 5 of the past 8 years can receive up to a $6,500 tax credit There may be no future extensions, so all qualified homebuyers are urged to act and have a written, binding contract by April 30, 2010 (close by June 30, 2010) Income limits are now $125,000 for singles, $225,000 for married couples with a $20,000 phase-out of the credit for both.

According to The National Association of Realtors News Release, dated 11/5/09, an estimated $22 billion has already been added to the general economy resulting from the bill and approximately 2 million people will utilize the tax credit in 2009.

The following chart provides more information:

Feature For First-Time Homebuyers For Current Qualifying Homeowners Amount of Credit $8,000 ($4,000) married filing separate) $6,500 ($3,250 married filing separate) Eligibility May not have had an interest in a principal residence for 3 years prior to purchase Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years Termination of Credit Purchases after April 30, 2010 Purchases after April 30, 2010 Binding Contract Rule So long as a written binding contract to purchase is in effect on April 30, 2010 the purchaser will have until June 30, 2010 to close So long as a written binding contract to purchase is in effect on April 30, 2010 the purchaser will have until June 30, 2010 to close Income Limits $125,000 - Single

$225,000 - Married

Additional $20,000 Phase Out $125,000 - Single

$225,000 - Married

Additional $20,000 Phase Out Limitation on Cost of Home Purchased $800,000 $800,000 Purchase Made by a Dependent

Ineligible

Ineligible

Additional Requirements Purchaser must attach documentation of purchase to tax return Purchaser must attach documentation of purchase to tax return

Information courtesy of http://www.realtor.org and http://www.whitehouse.gov

Speak with a local Coldwell Banker agent to assist with any questions you may have.

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Posted by Thomas Mayer on March 04, 2010 at 11:13 AM

About Thomas Mayer
Tom Mayer and Al Garcia come to Coldwell Banker with extensive experience in the luxury home and new construction markets as well as widespread relocation experience with both domestic & international clients. Since joining the Coldwell Banker office in Wayne they have dedicated their efforts to building a world class team. When asked about their mission Tom responds, “Our mission is to be an expert source for all of our clients home selling and buying needs in the four counties we serve; Passaic, Bergen, Morris, and Essex.” Tom’s previous work experience includes a tour of duty in the U.S Air Force and eighteen plus years of Wall Street experience. He holds a B.S. in Business Administration from Rowan University. Al’s previous work experience includes fourteen years of military experience as a U.S. Army Officer and four years of Wall Street experience. He holds a B.A. in History and Economics from Seton Hall University. Please call us at (201) 637-7484 to discuss the purchase or sale of you next residential property. We hope to forward to hearing from you and thanks for visiting our website! Tom Mayer and Al Garcia




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