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In an attempt to continue the fight against a declining economy, the United States Government has now extended and expanded the previous Home Buyer Tax Credit. The part of the bill that many expected was the extension of the bill through April 30, 2010. However, there were also a number of expansions, the most noteable of which was an expansion to include current home owners.
Current home owners purchasing a home between November 7, 2009 and April 30, 2010 may now eligible to receive a Tax Credit of up to $6,500. In order to qualify, current home owners must have resided in the home that they are leaving for five consectutive years of the previous eight years. First time home buyers still qualify for the up to $8,000 Tax Credit in previous bills so long as neither they nor their spouse owned a residence during the three previous years.
The other two big expansions were on the criteria for qualification, home sale price and buyer income. The home sale price may not exceed $800,000 in order to qualify for the Tax Credit. The buyer's income may not exceed $125,000 for a single person or $225,000 for a couple.
An additional expansion benefits armed, intelligence and foreign services personnel. If any of those personnel were on active duty and out of the United States for 90days or more during 2009, they will have until May 1, 2011, more than a year extra, to buy their homes. These personnel will also not be held to the three years of residence requirement if they need to sell their home prior to the end of the three years due to official business.
Finally, as with the previous Home Buyer Tax Credit, the best part is that the Home Buyer keeps the credit and does not have to repay it as long as they reside at the property for the next three years.
If you have any questions regarding the new bill or would like more information on how to take advantage of it, please call me at 713-568-5139 or email me at keith@ardurerealestate.com.
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