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Planning to move up, downsize, relocate or take the jump from renting to owning? Make your move before April 30 to cash in on thousands of dollars from the government.
You may have heard that the $8,000 first-time home buyer credit has been extended. But did you know that Congress also created a
new, $6,500 tax credit for long-time homeowners?
The tax credits are part of the Worker, Homeownership and Business Assistance Act of 2009, which was signed into law Nov. 6. They apply only to homes
purchased as a principal residence, and will be paid out to eligible taxpayers even if they owe no tax or the credit is more than tax owed.
Current homeowners: To be eligible you must have lived in your primary residence for at least five concurrent years out of the past eight.
First-time buyers: The $8,000 credit is available for those who haven't owned a home in the last three years.
Military: Members of the military and some federal employees have an extra year to qualify.
Key qualifications for either credit:
- Enter into a home buying contract by April 30, 2010.
- Close before June 30, 2010
- Meet the income limits: The credit phases out for individual tax payers with a modified adjusted
gross income between $125,000 and $145,000. Likewise it phases out for joint filers who make between $225,000 and $245,000.
- Plan to stay in your home for at least three years. (If you move before then, you’ll have to pay the money back).
Tax credit details
To learn more about how the credit applies to you and what the restrictions are, visit www.irs.gov, or consult your tax advisor.
Bargain mortgage rates and fees
Take a gander at the rates today. We not only offer some of the best rates in Clark County, but we work hard to keep our fees competitively low. So by buying now, you'll not only cash in on the tax credit, but you'll also benefit from great low rates that can save you money or help you purchase a more expensive home!
Sources:
- First-Time Home buyer Credit: Members of the Military and Certain Other Federal Employees, www.irs.gov. 11/19/09
- First-Time Home buyer Credit Questions and Answers: Basic Information, www.irs.gov. 11/19/09
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