Homebuyer Tax Credit Extended

The tax credit extension and expansion has been approved and provides some great, new opportunities for both first time home buyers and current home owners.

- To summarize the government's latest action for FIRST TIME HOME BUYERS:

- The $8,000 first-time home buyer tax credit is extended.

- The buyer cannot have owned a home within the last three years.

- The home they purchase must be their primary residence.

- Qualified first-time home buyers would receive their $8,000 tax credit if they sign a
purchase agreement by April 30, 2010 and close no later than June 30, 2010.

- The tax credit is up to 10 percent of the home’s value but cannot exceed $8,000.

- Annual income caps to qualify for the tax credit will increase to $125,000 for single filers
and $225,000 for joint filers.

- Partial tax credit can be granted for incomes up to $145,000 for single filers and $245,000
for joint filers.

The NEW expanded part of the action taken by the Congress and the President for
CURRENT HOME OWNERS who are eligible:

- A $6,500 tax credit for current homeowners purchasing a primary residence.

- The home is eligible if the purchase agreement is executed by April 30, 2010 and the transaction closes sometime between now and June 30, 2010.

- The home buyer must have lived in their current home for five consecutive years of the past eight years.

- The new home being purchased does not have to cost more than the current home.

- Annual income caps to qualify for the tax credit will increase to $125,000 for single filers and $225,000 for joint filers.

- Partial tax credit can be granted for incomes up to $145,000 for single filers and $245,000 for joint filers.

Personally I believe this will have a continued positive effect for first time home buyers; I am unsure what to expect will happen with respect to the new part of this stimulus package.

Have a great weekend and good luck to all you hunters; be careful. Life is a Gift...Live It!

Gary Nathan
Amanda Mavis
Woodland Dev. & Realty
15563 Railroad St
Hayward, WI 54843
715-699-4040
nathan@garynathan.com
http://www.garynathan.com/