Homebuyer Tax Credit Ends Soon!!

While eligible homebuyers have until July 1, 2010 to close on their new home, consumers must have a binding contract written between November 7, 2009 and April 30, 2010 in order to utilize the Federal Homebuyer Tax Credit. So, the clock is ticking on taking advantage of the current legislation for first-time buyers and some current homeowners. Check out Maracay Homes move-in ready homes today.

In November 2009, Congress extended and expanded the Homebuyer Tax Credit. Tax credits directly reduce the amount of taxes you owe. Below is a summary of the tax credit. Be sure to consult with a tax advisor to determine if you qualify!

FIRST-TIME HOMEBUYERS

• The first-time homebuyer tax credit has been extended until April 30, 2010.
• First-time homebuyers that meet the qualifications are eligible for up to $8,000.
• First-time homebuyers may not have had an interest in a principal residence for 3 years prior to purchase.

CURRENT HOMEOWNERS

• The tax credit has also been extended to include current homeowners.
• Current homeowners that meet the qualifications are eligible for up to $6,500.
• Current homeowners must have used home as a principal residence consecutively for 5 of the previous 8 years.

HOW TO GET THE EXTENDED HOMEBUYER TAX CREDIT
You've decided to purchase a home and take advantage of the Extended Home Buyer Tax Credit. Here's what you have to do to get your benefit:

1. Close on your home purchase between November 7, 2009 and April 30, 2010, or have a binding written contract by April 30, 2010 and close by July 1, 2010.
2. Decide whether to:
   • apply the credit to your 2009 tax return, filed on or before April 15, 2010;
   • file an amended 2009 return; or,
   • apply the credit on your 2010 return, filed on or before April 15, 2011.
3. Attach documentation of purchase to your return.

LIMITATIONS

• The credit applies only to homes under contract by April 30, 2010 and closed by July 1, 2010.
• The tax credit is equal to 10% of the purchase price up to $8,000 for first-time homebuyers and $6,500 for eligible current homeowners.
• There is an $800,000 limit on the cost of the purchased home.
• Income limits apply. The credit begins to phase out at adjusted gross income levels of $125,000 (single) and $225,000 (married).
• Purchases by a dependent are ineligible.
• Purchasers must provide documentation of the purchase with their tax return.
• If the property is sold within 3 years from the date of purchase, the buyer must pay back the full amount of the credit over time.

Homebuyer Tax Credit - Revised November 2009

Learn more about the Federal Tax Credit extension at Maracay's Q & A page at MaracayHomes.com/Tax Credit

Content adapted from Arizona Association of Realtors and National Association of Realtors.