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Monday, January 31, 2011

Home Buyer Tax Credit -- Still In Effect For Military

Remember the First-time Home Buyer Tax Credit
  •  $7500 which was then morphed into the
  • Home Buyer Tax Credit -- $8000 or 10% of the purchase price (which ever was the largest) which then morphed into a
  • Current Homeowner Tax Credit providing they occupied their home as a principal residence for 5 of the past 8 years?
In order to claim the credit, you had to be in a binding sales contract by April 30, 2010 and close on the home by June 30, 2010.

Days and dollars gone by, right?

WRONG!

HEY members of OUR Military and certain other Federal Employees serving outside the United States . . .

LISTEN UP!

YOU CAN STILL CLAIM THE TAX CREDIT if you buy a new home.

Here are the rules:
  1. Enter into a binding sales contract on a home (must be your principal residence – no investment property here) by April 30, 2011.
  2. Close on your home purchase by June 30, 2011. 
  3. For married couples, both spouses do not have to be overseas to qualify for this tax credit.

 I am happy to supply more details:


 Definition of First-Time Homebuyers (FTHBs): People who have not owned a home within the last three years. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.


 Definition of Current Owners (CHOs): Homeowners who have lived in their home as their primary residence for 5 of the past 8 years.


 How much are First Time Home Buyers eligible to receive? The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.


 How much are Current HomeOwners eligible to receive? $6,500


 What are the Income Caps? The amount of income someone can earn and qualify for the full amount of the credit has been increased.


  •  Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

  •  Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

 What is the Maximum Purchase Price? $800,000.


 The First-Time Buyer tax credit program was significantly successful at assisting first-time homebuyers into the role of homeowner.


It is exciting and mysteriously unknown that this program has been extended to the members of our MILITARY.


Why?

This should not be.




 Set up a home search here for your friend or family member in the military. Tell them about it.

  
Something to think about, and market to as a seller, too!