How about a Tax Credit for Move Up Home Buyers?

Dear Real Estate Bloggers, For those of you keeping score on the first time home buyer tax credit extension, here is the latest:

— The tax credit would be $8,000 for first-time home buyers and $6,500 for move-up buyers (from December 1, 2009 to April 30, 2010).

— Move-up buyers will be eligible, so long as the home they are leaving has been used as their principal residence for 5 years or more.

— The tax credit would sunset on April 30, 2010. However, there would a binding contract rule that will permit those with contracts as of April 30th to qualify for the credit so long as they complete the transaction within 60 days.

— The income limits for both first-time home buyers and move-up buyers would be $125,000 for single return and $225,000 joint return.

— Cost of the home may not exceed $800,000 to be eligible.

— For purchases made in 2010, taxpayers would be able to claim the credit on their 2009 income tax return.

— Home buyers would not have to repay the credit, provided the home remains their principal residence for 36 months after the purchase date.

— The amendment includes a military waiver provision, meaning the recapture provision would not apply in the case of a member of the Armed Forces, military intelligence or Foreign Service who is on qualified official extended duty. In addition, members of the military who have been deployed overseas for 90 days or more in 2008 or 2009 would have until April 30, 2011, to claim the home buyer tax credit.

— The amendment also includes anti-fraud language that provides math authority to the IRS to do greater oversight during the processing of the return rather than waiting for an audit situation. The amendment requires the taxpayer claiming the credit to be 18 or older as well as requiring a HUD-1 settlement statement to be attached when claiming the credit.

AND supposedly, sometime after 11a, the Treasury and HUD Secretaries will officially call on Congress to extend the credit and the higher conforming loan limits.

This is the latest update from Washington. No doubt it will impact the Raleigh real estate, Cary real estate and entire Triangle market for the coming months. Please e-mail me with any questions Marti@MartiHampton.com
stop by again soon.

Washington will extend the $8000 tax credit, or not? It looks good for now.

Hello Dear Bloggers, Just a short update on the $8000 tax credit. There is no doubt the tax credit has helped Raleigh real estate rebound in sales. Here is what we know right now on the status of will the $8000 tax credit be extended?
WASHINGTON (Reuters) - Top Democrats in the Senate have reached an agreement to extend the soon-to-expire $8,000 tax credit for first-time homebuyers, Senate Banking Committee Chairman Christopher Dodd said on Tuesday.
"We have that. Done," Dodd told reporters. He declined to specify the details of the agreement.
But a Republican who has worked with Dodd cautioned that they were still negotiating on the measure, which could come up for a vote on Tuesday evening as part of a package that would extend unemployment benefits.
"We're close, we're close but I can't get into any details until it's a done deal," said Republican Senator Johnny Isakson.
The popular tax credit, which has helped lift the housing market out of its worst slump since the Great Depression, is set to expire on November 30.
Dodd and Isakson want to extend the credit through June of next year and broaden it to anyone buying a primary residence, not just first-time buyers.
Senate Majority Leader Harry Reid had backed a narrower version which would extend the full credit through March and gradually phase it out through the end of 2010.
Dodd said that the deal would merge the two proposals.
We are sitting on the edge of our seat waiting and watching until this measure finalizes. Thanks for stopping by. Please e-mail me at marti@MartiHampton.com with any questions about real estate.

It Began as a Loan and is now a $8000 gift !!!

Hello Bloggers – thanks for stopping by today. I spent a few minutes with Scot Fitzgerald on WPTF’s morning show this a.m. and the talk was about the $8k tax credit. The history on this current law began in 2008 when the Fed rolls out a $7500 tax credit. The 2008 tax credit did give an immediate credit for qualifying home buyers. Unfortunately, the credit was really a tax free loan. A little benefit maybe, but who is seeking additional debt in today’s world?

In 2009, this weak adventure in stimulating the real estate market turned to a true asset. The Feb began offering an $8000 tax credit for home buyers that have not owned a home in the past 3 years. There are income qualifications. A single tax payer may earn up to $95,000 and still qualify and a married couple may earn up to $150k with declining benefits up to a joint income of $170,000. To qualify, the home buyer must live in the principle property for 36 months. If they fulfill this 36 month principle residence, they DO NOT HAVE TO REPAY the tax credit. If you happened to have bought a home last year during when the $7500 tax free loan was in effect, you can simply fill an amended tax form.

Curious? Click here to email me.

One other advantage we talked about this morning was the additional $2000 tax credit that many if not most of our first time home buyers qualify for in addition to the $8000. My math may not be the best, but I can figure a $10,000 bonus when I see one! Please, if you know anyone that hasn’t owned a home in 3 years – tell them about this benefit – the time is running out. Will the Fed extended. I hope so, but Washington is a little busy these days. The program may not be the same. The Fed may revert back to the loan status, who really knows! Right now, $10,000 is possible to many buyers that qualify to buy a home today.

Interested in what was said on the radio? Click here to listen!

Stop by again soon, God Bless you and yours.