Federal Tax Credit Extended and Expanded!
The best way to find out all the details is to go to this website: www.federalhousingtaxcredit.com. It’s a simple, clear, comprehensive website from the National Association of Home Builders (NAHB) that answers most questions you might have about the new law.
Highlights include:
• You must enter escrow by April 30, 2010, and close by June 30, 2010.
• The income limits have been expanded to $125,000 Modified Adjusted Gross Income (MAGI) for singles, $225,000 MAGI for married couples filing jointly.
• Some move-up buyers now qualify for up to a $6500 tax credit, if you have owned and lived in your principal residence for 5 of the last 8 years. Your new home does not have to cost more than your old home. I don’t see any discussion of what you have to do with your old home, either, so you might be able to keep it and rent it out if you want. The new home cannot cost more than $800,000.
Of course, for tax and legal advice, you must consult your own appropriate professional.
If you have been thinking about selling and you can accept what the market brings you today, this is a great time to sell. The pent-up demand from first time buyers is terrific, but this new law opens up a whole new market of long-time home owners who now have a new incentive to make a move. If you want to find out more about your own housing situation, please contact me.
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