Tax Credit Creates More Opportunities for Buyers
Coldwell Banker Residential Brokerage
When the federal government announced the first-time home buyer’s tax credit last year, the housing industry saw a wave of new buyers eager to take advantage of an unprecedented opportunity. Sellers enjoyed a pool of new buyers trying to meet a deadline. It was a great move for buyers, sellers and our economy.
Now, with the recent extended and expanded tax credit adding current homeowners to the buyer pool, up or down-sizing to a more desirable home is more appealing. We are already beginning to see signs of additional activity in the mid and luxury home markets. Please click on the county graphs found in the list to the right to determine if there is a trend already happening in your area.
Current homeowners who have lived in their primary residence for five of the last eight years are eligible for a tax credit of up to $6,500. First time buyers, which include buyers who have not owned a primary residence in the last three years, are eligible for up to an $8,000 tax credit.
The tax credit is just that - a credit against your tax liability and often results in a refund check. For example, a current homeowner who qualifies for the $6,500 credit and has a 2009 tax liability of $4,000, would be allowed a full tax credit of $4,000 and receive a check for the remaining $2,500. Check with your tax accountant or attorney about how the credit would work specific to your personal situation.
Please remember, the deadline to take advantage of the tax credit is April 30, 2010.
If you have specific questions about this would affect your taxes, check with your tax accountant or attorney. If you or someone you know would like to discuss how to take advantage of this short-term opportunity in purchasing a primary residence, I have the expertise to assist.
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