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Want to know more about the $6,500 federal tax credit for Repeat home buyers? Here are some of the details:
- The tax credit is equal to 10% of the purchase price of the home, up to $6,500.
- The tax credit does not have to be repaid as long as the Buyer maintains the home as their principal residence for three years after the purchase date. Don’t sell it, move out or rent it, if you want to keep the tax credit.
- It is only for repeat home buyers purchasing a principal residence after November 6, 2009 and before April 30, 2010.
- If a Buyer has a binding sales contract by April 30, 2010 and closes by June 30, 2010, they will qualify.
- A Repeat home buyer is defined as a person who has resided in their home for at least 5 consecutive years of the last 8 years prior to the purchase date. If you’re a married couple, both spouses will need to qualify.
- Repeat home buyers do not have to purchase a home that is more expensive to qualify.
- A single tax payer could qualify for the entire tax credit if there income does not exceed $125,000. A married couple filing a joint return could qualify up to an income of $225,000.
- Taxpayers with incomes that exceed the limits by up to $20,000 above the maximum income limit, may qualify for a percentage of the tax credit.
- The types of homes that qualify are newly built and existing single family homes, townhomes, condominiums, manufactured homes and house boats.
- The definition of principal residence is the same as the definition used to qualify for the $250,000 and $500,000 capital gains tax exclusion for the sale of a principle residence.
- A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $6,500 in income taxes and who receives the $6,500 tax credit would owe nothing to the IRS. This is not the same as a tax deduction.
- If you are not a U.S. citizen you may still qualify if you are not a non-resident alien (as defined by the IRS).
- For more information on the tax credit, contact your accountant.
If your plan is to move from one home to another, just putting your home on the market isn’t enough. Your home will need to be ready to show and you’ll need a strategy to accomplish the sale and purchase of another home in a reasonable time frame.
With 10 years selling homes in metro Salt Lake and 20 years in the real estate business, I have many strategies and an in depth understanding of what it takes to help you sell and buy another home. Call or email me if you’d like to take advantage of this opportunity!
If your plan is to move from one home to another, just putting your home on the market isn’t enough. Your home will need to be ready to show and you’ll need a strategy to accomplish the sale and purchase of another home in a reasonable time frame.
With 10 years selling homes in metro Salt Lake and 20 years in the real estate business, I have many strategies and an in depth understanding of what it takes to help you sell and buy another home. Call or email me if you’d like to take advantage of this opportunity!
Contact SLCHomeBuyer and Kevin Coyle
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