“Like sand through the hourglass, so goes the days …” leading up to the expiration of the Federal
government’s home buyer tax credit. Home purchasers must have a signed contract by April 30 and a closing date no later than June 30.
First-time home buyers can receive a tax credit of 10 percent of a home’s purchase price up to $8,000. Existing homeowners looking to downsize or upgrade, are eligible for a tax credit of up to $6,500. Their existing home will have had to be their permanent residence for five consecutive years out of the past eight.
Other stipulations: Credit would be limited to individual buyers who earn less than $125,000 annually and married couples who have a combined yearly income of up to $225,000. The tax credit can only be used for homes purchased for $800,000 or less.
Spokesperson for the National Association of Realtors (NAR) Walt Molony attributes last year’s sale of 2 million existing homes to the first-time home buyer tax credit. NAR chief economist Lawrence Yun anticipates that the tax credit could add another 1.5 million sales to this year’s total.
The Internal Revenue Service (IRS) provides detailed information for both first-time and existing home buyers here.
Posted by Sharon Walker
