Barbara & Bud Silcox

It's official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.

In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

So Who Gets What?
The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.

Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Deadlines
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.

What is the tax credit for first-time homebuyers (FTHBs)?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is eligible for the FTHB tax credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How do I claim the credit?
For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).

Can you claim the tax credit in advance of purchasing a property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Are there other restrictions to taking the credit?
Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.

• You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
• You do not use the home as your principal residence.
• You sell your home before the end of the year.
• You are a nonresident alien.
• You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
• Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
• You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.

Can you buy a home from a step-relative and be eligible for the credit?
Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.

Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?
Yes.

Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?
No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.

If you have any questions give the Barb Silcox Team at call at 215-738-6606 or email us at Bud@Silcoxteam.com.

Spacious Colonial that sits proudly on a corner lot. Extensive professional landscaping with a paver patio greets you as you enter the home. As you enter the home, hardwood floors welcome you. As you walk-thru the foyer into the family room, you are then met with large vinyl windows, and a brick wood burning fireplace. In addition to the Formal Dining Room, you have a large Eat-In Kitchen which has all the amenities including, electric cooking, dishwasher, garbage disposal and built-in microwave. The Master Bedroom features a full master bath, along with his and her closets. All three bedroom closets have closet organizers. The basement is finished with 2 areas closed off for storage and an area that can be used as an office or den/study. All windows are vinyl, the exterior is maintenance free vinyl siding. There is a large composite maintenance free deck off the back of the house with easy exit/entrance from the Family Room. First floor laundry room as well. Home with 1 Year Home Warranty.

For more information on this property or others call The Barb Silcox Team of Keller Williams Real Estate directly at 215-738-6606 or 215-757-6100 x 176. You can email us at Barb@Silcoxteam.com. Visit our website at www.OurDreamHomes.net

In a buyer's real estate market, there often seems to be too much information, too many choices and too many opinions. This can be very confusing.

Please call us for a "real-life perspective". Your goal is home ownership. Our goal is to offer a simple road map to get you there.

Call the Barb Silcox Team at 215-738-6606 or 215-757-6100 x 176. You can also email us at Bud@SilcoxTeam.com with any questions. If you are a First Time Buyer looking to take advantage of the $8,000 tax credit, time is running out. Schedule a FREE consultation today to get started. Check out our website at www.OurDreamHomes.net.

If you or someone you know have been considering purchasing a home and taking advantage of the $8,000 First-Time Homebuyer Tax Credit, time is running out.

News reports state that buyers have until December 1^st to make settlement, that is correct, however to settle by December 1^st, you need to start the process much sooner. Most buyers look at an average of 10 to 15 homes before they find the perfect fit. Once you write an offer it then takes time to negotiate a fair price, have home inspections, and start the loan process. All of this combined could take up to 3 weeks. Lenders generally need a minimum of 30 days to get the mortgage in place. What this boils down to is, you really need to start the process by September at the latest, so you have adequate time to find a home and settle on it before the December 1^st deadline.

Local Real Estate market conditions make this the perfect time for you or someone you know to purchase a home. Home prices are low and so are interest rates.

As an added incentive the Barb Silcox Team is offering and additional $250.00 cash back to buyers at settlement that want to take advantage of these great opportunities. Add this to the $8,000 gift from Uncle Sam, plus the low prices and interest rates, make this an outstanding opportunity to become a homeowner.

Our services to you as a buyer cost absolutely nothing, give us a call so we can schedule a time to get you started.

If you know of anyone who is considering purchasing a home, have them give us a call at 215-738-6606 or 215-757-6100 x 176. They can also email us at Barb@SilcoxTeam.com. Visit our website at www.OurDreamHomes.net.

Lovely single family ranch in Levittown, 1 car garage with garage door opener. Beautiful remodeled kitchen, four years ago. With stainless dishwasher and cook top stove, new white cabinets and grey counter top, and vinyl flooring. Newer W/W carpeting installed four years ago. Bathroom was remodeled four years ago. Living Room features a brick fireplace. Newer plumbing in kitchen and bathroom. Has termite contract with Termix, and heater contract with Meenan oil with tank coverage. Four ceiling fans. Must see to appreciate. Take advantage of the $8000.00 tax credit. This is a great starter home.

For more information on this property or others call The Barb Silcox Team of Keller Williams Real Estate directly at 215-738-6606 or 215-757-6100 x 176. You can email us at Barb@Silcoxteam.com. Visit our website at www.OurDreamHomes.net