Home Buyers Stimulus $6500 Tax Credit

On April 30,2010 the Home buyers Tax Credit will expire.

Homeowner $6,500 Tax Credit Guidelines:

To qualify for the Homeowner Tax credit of $6,500 you must :

Occupancy Requirement: Have lived in your home for 5 consecutive years of the previous
8 years, which means if you sold your home during the past 2 plus years but lived in it prior to that for 5 consecutive years , you can qualify for the $6500 tax credit provided you meet the rest of the following criteria.

Example: You bought a home in 2002 and sold in 2008 after living in it for 5 consecutive years, and have been renting since then. You can buy a new home and get the $6500 Tax credit , as long as you enter into a purchase agreement before April 30, 2010.
Income Requirements : To receive the full $6500 tax credit , your income should be $125,000 if single , or $225,000 if married. Check with your accountant or tax preparer to find out the exact amount.

* You can still qualify for a reduced tax credit if your income is at the maximum allowed of $145,000 (single) and $245,000 (married).
Maximum Home Price : The price of the new home cannot exceed $800,000
Deadline: A binding purchase contract for the new home must be entered into between November 7, 2009 and April 30, 2010 , but closing must be completed by July 1, 2010.
Occupancy Requirement #2 : The new home must be your principle residence.

Homeowner Tax Credit Frequently Asked Questions :

What kind of properties qualify for the $6500 Tax Credit ?

House, condominium, townhome, manufactured home, apartment cooperative, houseboat, housetrailer, 1-4 units provided you live in one of them

Do I have to buy a more expensive house to qualify for the $6500 tax Credit ?

No. You can downsize to a less expensive home than you currently live in, or you can upgrade to a bigger house as long as the price does not exceed $800,000.

If I have a co-signer on my mortgage loan , would I still qualify for the Tax credit ?

Yes, provided you meet all the other criteria detailed above

If you qualify , you should take advantage of the $6500 home owner tax credit, but keep in mind that the deadline date of April 30, 2010 for having entered into a binding contract to purchase and July 1,2010 to close .

Don't miss out if you qualify, especially if you are downsizing as the inventory of less expensive homes is shrinking at this time.

Tax Credit up to $8,000 tax credit benefits first-time home buyers who meet the following guidelines

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Abraham Baghbodorian
Tarbell, Realtors
818-903-7641
contact me

Abraham Baghbodorian, Tarbell Realtors . Tel: 760-600-6187 / 818-903-7641 Fax: 760-777-7571

4700 Washington St. Suite 101 , La Quinta CA 92253.

Email : abrahamb@tarbell.com - abraham@epalmspringsrealestate.com / - Web: www.ePalmSpringsRealEstate.com