As a plan to stimulate the housing market, Congress approved an extension as well as an expansion to the origianl plan. This information is an attempt to inform you about what you “need to know”.

What are the deadlines?

In order to qualify, first-time and repeat buyers must have an accepted contract by April 30, 2010. The home must close on or before July 1, 2010.

How much money is available?

The maximum allowable credit for first-time buyers is $8000. the maximum for repeat buyers is $6500.

Who qualifies for the tax credit?

To qualify as a first-time buyer, the purchaser or his/her spouse may not have owned a residence for the past 3 years. to qualify as a repeat buyer, current home owners must have used the home being sold or vacated as a principal residence for five consecutive years of the past eight.

Are there income limits?

The new law raises the income limits for people who purchase homes after November 6, 2009. The full credit will be available to taxpayers with modified adjusted gross incomes up to $125,000 or $225,000 for joint filers. Those with MAGI (modified adjusted gross incomes) between $125,000 and $145000 ~ or $225,000 and $245,000 for joint filers ~ are eligible for a reduced credit. Anyone with a higher income does not qualify.

How do I qualify to get the benefit?

Buyers can apply the credit to their 2009 tax return, filed on or before April 15, 2010; file an amended 2009return; or apply the credit on their 2010 return, filed on or before April 12, 2011.

Are there certain properties that are eligible?

The tax credit program ~ Extended Home Buyer Tax Credit ~ may be applied to primary residences, including single-family homes, condos, townhomes, as well as co-ops.

Hopefully this sheds some light on the tax credit or at least answers a few questions.

until next time…………….

Blessings

Tonya and Tifni

For market access to Boise Real Estate | Look up listings | Search for property go to http://boisehomes4u.com

Tonya Pense 208 860-1598 tonyapense@remax.net

Tifni Pennecard 208 861-8295 tifni@catchboisehomes.com

Tags: Boise Real Estate, how to buy a house, Income limits, real estate loan, Tax credit

Posted on Thursday, February 25th, 2010 at 2:32 pm and is filed under Boise Real Estate, Buy a House, Condos, First Time Home Buyers, Housing Market, Mortgages, Questions and Answers, Real Estate, Townhomes, Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.