Breaking News! 8,000 Tax Credit Extension! For Military Members who were deployed in 2009 and 2010 see below for military clause.
As Modified in the Unemployment Insurance bill PROVISIONS EFFECTIVE FOR PURCHASES ON OR AFTER DECEMBER 1, 2009 AND A RATIFIED CONTRACT ON OR BEFORE APRIL 30, 2010 (CLOSING MUST OCCUR WITHIN 60 DAYS OF APRIL 30, 2010)
FIRST-TIME HOME BUYERS
An $8,000 tax credit is available to first-time home buyers. Purchaser (and purchasers spouse) may not have owned a principal residence in 3 years prior to purchase home buyer meet home buyer-home buyer home buyer definition.
EXISTING HOMEOWNERS
A $6,500 credit is available to home buyers who have owned and lived in a home for 5 consecutive years of the last 8 years.
ELIGIBLE PROPERTY
Any single family residence (including condos, co-ops and townhouses) that will be used as the principal residence.
REFUNDABLE
Yes. Reduces (or, can eliminate) income tax liability for the year of the purchase. Any unused amount of tax credit will be refunded to the home buyer.
INCOME LIMIT
Yes. Full amount of credit available for individuals with adjusted gross income of no more than $125,000 or joint gross income of no more than $225,000. The credit is phased out to lower amounts for individuals and joint filers with higher gross incomes.
PURCHASE PRICE LIMITATION
The credit is available only for the purchase of principal residences with a purchase price of $800,000 or less.
RECAPTURE
None, unless the home is sold within three years of the purchase. If the home is sold within three years original purchase, the entire amount of credit is recaptured upon sale. Recapture provision is waived for military personnel relocating due to orders.
MILITARY PERSONNEL
Credit extended for one year after expiration date for any military personnel that is serving outside United States for at least 90 days in either 2009 or 2010.
TERMINATION
Must have a ratified contract on or before April 30, 2010 and close within 60 days of April 30, 2010.
ANTI-FRAUD MEASURE
Purchaser must attach documentation of sale to tax return.
EFFECTIVE DATE
December 1, 2009
Loan Limits (applies to Berkeley, Charleston, Dorchester Counties)
(Extended through December 31, 2010) FHA loan limit: $335,000 Fannie Mae/Freddie Mac loan limit: $417,000
Please call or e-mail Mike Ensley with Questions.
I wanted to give you this heads up if you are considering a move. I have lots of experience in the new home process and have helped many a buyer save lots of money now and avoided purchase mistakes that will only be apparent at resale. Who does the on site agent represent anyway? THE BUILDER! Let my experience work for you with any of the builders in the Charleston and Surrounding areas. It will not cost you a dime more. Call or e-mail me and get started! P.S. With a lot of real estate agents going back to a regular job, please make sure whoever you choose to use, is a full time, full service Realtor that is available and focused on your home needs. "And although we legally and ethically represent our buyer clients, our services will typically be paid for by the seller, who has authorized a commission to be split between the listing broker and a buyer's agent, costing you nothing. We guarantee that you will never pay more by securing representation from our firm than you would in dealing with a traditional real estate agency. Please call or e-mail Mike Ensley, Realtor, ABR, e-PRO, RECS-The AgentOwned Realty Group www.IknowCharleston.com Web site IknowCharleston@msn.com e-mail
1-843-697-0143 Cell Phone 1-866-526-3568 Toll Free Mobile E-MAIL ME FOR FREE LIST OF SHORT SALES AND BANK OWNED HOMES AS WELL AS VA and HUD Foreclosure Homes-IN AND AROUND THE CHARLESTON AREA How does this work with my tax refund? This could work a number of ways. The following three scenarios will help explain. Scenario 1: Your final tax liability is normally $6,000. You've had taxes withheld from every pay check and at the end of the year you've paid Uncle Sam $6,000. Since you've already paid him all you owe, you get the entire $8,000 tax credit as a refund check. Scenario 2: Your final tax liability is $6,000, but you've overpaid by $1,000 through your payroll withholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid. Scenario 3: Your final tax liability is $6,000, but you've underpaid through your payroll withholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund! |