Get your Home Buyer Tax Credit its been Extended and Expanded

Don't sit by and watch this pass, yor tax credit awaits. As part of the plan to stimulate the U.S. housing market Congress passed legislation that has:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010. In this case a "first-time home buyer" is the purchaser or their spouse may not have owned a residence during the three years prior to the purchase.

• Expands the Tax Credit to include current home owners purchasing a home between November 7, 2009 and April 30, 2010 with a Grant up to $6,500. Home owners who have used their home as a principal residence for five consecutive years of the last eight are eligible for the expanded credit.

Of course there are a few guidelines you should keep in mind when considering using the Tax Credit...

• The Extended Home Buyer Tax Credit may be applied to a primary residence, including: single-family homes, condos, town homes with a purchase price of under $800,000.00.

• Individual Buyers with an income up to $125,000.00 or married couples with a combined income up to $225,000.00 are eligible for the maximum allowable Tax Credit which is:

• First Time Home Buyers - The maximum allowable credit is $8,000.

• Current Home Owners will have a maximum allowable credit of $6,500.

• Home Buyers still may qualify for a Tax Credit if they earn more than the allowable income levels. The actual credit is then determined by a sliding scale of income up to $145,000.00 for singles and couples earning up to $245,000.00.

• A home must be under contract no later than April 30, 2010 and must settle by July 1, 2010 in order to receive the eligible credit

The best news on this credit is that the Home Buyers need not repay the amount if they live in the home for three years or more following the settlement date. However if you sell during those first three years be prepared to pay Uncle Sam back every penny!

As with all tax credits and accounting information it is suggested that you check with your professional financial advisors to be sure how the credit will affect you.

For more information on buying or selling a home contact:

David F. Joslin, Jr.
Pennsylvania Real Estate Broker #RM421043
REALTOR®, CRS, ABR, e-PRO, GRI, ARM Member

Grand Real Estate Services
610-565-9292 office ext 205
610.517.8249 cell
david@davidjoslin.com