| We've had great news in the housing market this past | | | | 30, 2010, a buyer can still qualify if he/she closes by |
| week! The $8,000 First Time Home Buyer Tax Credit | | | | June 30, 2010. Buyers who are in the military have |
| will be extended through April 30, 2010. This extension | | | | some special extensions for these deadlines, so be |
| is good news especially for first time home buyers | | | | sure to tell your lender if you meet this qualification. |
| taking advantage of the credit. | | | | 5) For homes purchased on or after January 1, 2009 |
| But, even if you don't qualify for it, know that you | | | | and on or before November 6, 2009: single tax payers |
| should benefit indirectly from it. It's been a very | | | | must meet the income limit of $75,000 (for married |
| effective incentive for getting homes sold in | | | | couples filing jointly, their income must not exceed |
| Charleston, and as Realtors we've seen the results | | | | $150,000). |
| firsthand in our area. The extension is expected to help | | | | 6) For homes purchased after November 6, 2009 and |
| continue the healthy growth that we've seen in the | | | | on or before April 30, 2010: single tax payers must not |
| Charleston real estate market in the past few months. | | | | exceed the income limit of $125,000 (married couples |
| I have included below more of the details regarding the | | | | filing jointly must not exceed $225,000). |
| tax credit extension. These are important to note | | | | 7) The main benefit of a tax credit is that it works as |
| because this go round, there are more provisions to | | | | a dollar-for-dollar benefit. If it were a tax deduction, it |
| meet compared to the original tax credit. | | | | would only reduce your tax liability and would only |
| 1) The IRS defines a first-time home buyer as | | | | save you $1,000 to $1,500 in the long run. So, let's say |
| someone who has not owned a principal residence for | | | | you are a first time home buyer qualifying for the |
| the three years prior to purchase. | | | | entire credit. If you owe $8,000 in income taxes qualify |
| 2) The amount is equal to 10 percent of the home's | | | | for a tax credit of $8,000, you would owe nothing. |
| purchase price, up to a maximum of $8,000. | | | | 8) The tax credit is also refundable, which means you |
| 3) The purchase price of the home must be $800,000 | | | | can receive a check for the credit if you have little or |
| or less. | | | | no income tax liability. So, let's say you are eligible for a |
| 4) The time frame includes sales occurring on or after | | | | tax credit of $8,000, and you owe $3,000 in income |
| January 1, 2009 and on or before April 30, 2010. | | | | taxes. You can still receive a check for the remaining |
| However, if a binding sales contract is signed by April | | | | $5,000! |