A Great New Year’s resolution:  

Calling all Central Ohio first time and repeat home buyers, legislation extended the first time homebuyer tax credit along with expanding the program to include a $6,500 tax credit for repeat buyers. The Worker, Homeownership, and Business Assistance Act of 2009, was signed by President Barack Obama on November 6, 2009. 

First time buyers:   

 If you didn’t take advantage of the initial $8,000 tax credit the extension gives you the opportunity to take advantage of the tax credit so don’t delay the June 30 deadline will be here before you know it. Extension of the $8,000 tax credit for first time home buyers; Buyer’s can claim 10% of the purchase price of their home, up to $8,000 – if the buyer hasn’t owned a home as a principal residence in the past 3 years.

Repeat homebuyers:

The tax credit is equal to 10 % of a home purchase price up to a maximum of $6,500. To be eligible to claim the tax credit, buyers must have owned and lived in their current home for 5 consecutive years out of the last 8 years. There are no restrictions if you want to downsize, you don’t even have to sell your existing home as long as you move into the new home on the day that you purchased it which must be your principle residence.

Other terms & time frames:

• Principle residence includes new construction, existing, single family, condo, town home, manufactured or mobile homes and boasts that function as principle residence. The tax credit doesn’t have to be repaid. The price of the home can’t exceed $800,000.
• All home purchases after January 1, 2009 thru April 30, 2010 qualify for the tax credit. Binding contract signed by April 30, 2010 and closed by June 30, 2010 will also qualify. Tax credit is extended until May 2011 for military personal whose duty takes them overseas.

Income limits:

• Homes that were purchased after January 1, 2009 but before November 6, 2009 the income limits are $75,000 for single taxpayers and $150,000 for couples filing jointly.
• Homes that are purchased after November 6, 2009 the income limits are $125,000 for single taxpayers and $225,000 for couples filing jointly. 

Tax credit forms:  

• The IRS will require you to provide the closing settlement statement (forms) 
• Along with the request for the credit using the IRS Form 5405

Once-in-a-lifetime opportunity:

Please do take advantage of the homebuyer tax credit. The National Association of Realtors and Real Estate agents worked hard urging government officials that the extension would help the economy recover.  Historically low interest rates will not last forever. If you are thinking of making a home purchase you could possibly qualify to take advantage of the tax credit, a great new year’s resolution that should be at the top of your list of goals to be obtained in 2010.

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