Did I hear this right …now anybody can get a tax credit for buying a house?
KW and RS
Dear K and R:
Well first off, let me say that the original $8,000 tax credit for first time home buyers has just been extended.
If someone missed the chance the first time around, it is now the time to start looking for a home. That credit has been extended until April 2010.
There is now a second credit, but sorry it’s not for “anybody.” It is for qualified homeowners who have lived in their current home for at least five of the past eight years, they are eligible for up to a $6,500 tax credit to buy a home.
This tax credit, which does not require repayment, is aimed at the move-up buyer.
The price of home you buy can be up to $800,000. That is amazing! There are income limits but they too are very generous, a couple can make an AGI of $225,000. (For single taxpayers, $125,000)
Here is the catch, and it is very important: You must be under contract (an accepted offer) by Aril 30, 2010 and close within 60 days.
At a meeting I attended yesterday, it was said that they it is very doubtful that either of these credits will be extended again as the credits are doing what they are suppose to do, spark the economy.
With interest rates at historic lows there has never been a better time to buy a home.
Happy home hunting and happy holidays!
Jan Zufelt is an associate broker with John L. Scott Real Estate.