Over the last year all we've heard about is stimulus for this, stimulus for that. If you're anything like me you've probably been thinking that you got the short end of the stimulus stick. Well, not so fast my friends! (my son is a huge college football fan so, if you watch College GameDay on Saturday morning, you'll get that reference).
The President just signed an extension of the first time homebuyer tax credit. This was set to expire at the end of November but has been extended until June 30th. The really good news is that a credit is now being offered to those that have owned a home also. The first time buyer credit is still $8,000. The move up credit is $6,500 and is being offered to homeowners who are buying a new primary residence beginning December 1st.
The language mandates that to get the credit the homeowner must have owned their home for five consecutive years of the previous 8. There are income limits to watch out for too: $125,000 for individuals and $250,000 for couples. And there is an anti-flipping rule. Any homeowner who collects the credit and sells within three years must return the money (it's the same for the first time buyer credit). The extension goes into effect on December 1st and covers consumers signing a contract by April 30th and closing by June 30th.
If you'd like more information, the government has set up a website with frequently asked questions. Just go to: The Federal Housing Tax Credit website. And as always, I'm happy to answer any questions.
No comments:
Post a Comment