Be in Escrow by April 30 to Claim Tax Credits
Ready to buy another home? Prices and interest rates are low right now, but starting to go up. You may be able to collect a tax credit if you purchase your next home by April 30 and close escrow by June 30.
The November economic stimulus package that extended the $8,000 first-time home buyer tax credit included a tax credit of up to $6,500 for home owners who want to purchase another principal residence for up to $800,000. Home owners must have lived in their present home for at least 5 of the last 8 years to get the tax credit.
“Repeat” home buyers can claim the credit if their modified adjusted gross income is less than $125,000 if single, or $225,000 if married and filing a joint tax return. Single or head-of-household taxpayers who earn between $125,000 and $145,000 and married couples who earn between $225,000 and $245,000 can get a partial tax credit.
The tax credit is refundable and you can apply it to your 2009 tax bill.
If you’ve been thinking about moving, call us. We will help you find your next home, negotiate on your behalf and guide you through escrow. If you decide to sell your present home, we can do that too, Someone may want to take advantage of the tax credit to move into your home! We’re here to help you get where you want to be!