About King County, WA

First Time Buyer Tax Credit Extended and More!

President Obama signed an economic stimulus bill into law today, which will extend the first time buyer tax credit but it will also benefit current home owners wishing to make a move.

In addition to the $8,000 first time buyer tax credit, there is also now a credit of $6,500 for buyers who have owned their current home for at least 5 years. To be eligible you must have used the home you sold or are selling as a principal resident consecutively for 5 of the previous 8 years.

To take advantage of this credit you must be under contract by April 30, 2010 and you must close by June 30, 2010.

The National Association of Realtors has put together some information on the program as well as a brief frequently asked questions page.

Good news for all home owners!

Agree or Disagree, Tax credits are put in place to stimulate the economy. I personally would rather see this type of rescue than huge corporate bailouts. I do believe this will help a few people planning to close during around the thanksgiving holidays cause to sleep better. Homeowners moving up the property ladder recieve a credit too.

Read about the Tax Credit Extension Here

Stay tuned...

President Obama has just signed an extension of the $8,000 tax credit given to first time homebuyers. First time homebuyers are defined as those that have not owned a home in the last 3 years, and it works if you buy a home for sale anywhere - from Seattle, Washington all the way to Orlando Florida!

The bill also provides a $6,500 tax credit for "move up" homebuyers. Move up homebuyers are those that own a home but want to sell it and buy another. These homeowners must have lived in the home at least 5 of the last 8 years.

This bill also raises the income limit to $125,000 for single tax filers and $250,000 for joint tax filers. The home purchased must be $800,000 or less.

The new deadline is June 30th, 2010!

This is great news for many of you who were looking to buy a home but couldn't do so before the deadline.

There's more information, if you're interested. Just give me a call or shoot me and email if you have any questions!

- Jay

www.ABODEN.com

Photo taken with a Nikon D40X 18-55mm by Sonny Kwan Realtor® with John L Scott Real Estate Seattle, WA, All information is believed to be accurate, but is not warranted in any way. Visit my website www.seattleidx.com to search all homes on the internet or contact me for a referral of a great agent in your area!

© 2009 By Sonny Kwan All Rights Reserved

The Home Buyer Tax Credit has just been Signed into law and is effective immediately! The expanded Home Buyers Tax Credit is valid for First Time Buyers AND for 'Move Up' exisiting Home Owners who are purchasing another property! Here are the details:

Tax Credit for Homebuyers

First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit for home buyers 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.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New 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.

Tax Credit Versus Tax Deduction

It’s important to remember that the tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

Higher Income Caps

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 sale price of $800,000.

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Remember, the new tax credit program includes a number of details and qualifications. For more information or answers to specific questions, please call me at 206.218.8448 or email Joseph R Hill at josephrhill@kw.com today.

In addition, you may be able to benefit from additional housing related provisions, including the following:

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Tax Incentives to Spur Energy Savings and Green Jobs

This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings

This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing

This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

Expanding Housing Assistance

This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.

Thats it! come see Joseph Hill this Sunday at his Open House on Capitol Hill or call with any questions!