Denise Wambsganss
Realtor Your Castle Real Estate

Friday, November 6, 2009

Tax Credit extended into 2010

It's official. President Obama signed a bill that extends the tax credit for first-time Homebuyers into the first of 2010. This program had been scheduled to expire on November 30th 2009.

In addition extending a tax credit of up to $8,000 through June 30th 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

The program now gives those already who own a residence some additional reasons to ove to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

DEADLINES: In order to qualify for the credit, all contracts need to be in effect no later than April 30th and close no later than June 30th 2010.

What is a tax credit? A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service. In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.

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