Home Buyer Tax Credit
As the deadline for the First-Time Homebuyer Tax Credit crept closer, it became a clear priority on the Hill. An extended and expanded home buyer tax credit is a part of a larger bill that also extends unemployment benefits. This bill was signed by President Obama on Friday, November 6.
The bill essentially remains intact but has a handful of important changes:
| Previous Provisions
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New Provisions | |
| Effective Date | January 1, 2009 | November 7, 2009 |
| Deadline | Close before December 1, 2009 |
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| Amount |
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| Income Limit |
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| Other Restrictions | Home must be primary residence for at least 3 years. If home is sold or buyer moves before 3 years, must re-pay full $8,000. |
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| How to claim | If purchased in 2009, by amending 2009 tax return or claiming on 2010 tax return | If purchased in 2010, by amending 2010 tax return or claiming on 2011 tax return |
Earlier this year, KW Research conducted a study of first time-buyers and here’s a few of the findings:
- The median age was 28, significantly down from where it was four years ago at 32.
- Location or Neighborhood was the No. 1 “must-have� for 36% of buyers.
- 25% saw 5 or less homes before writing an offer, the average buyer saw 10 homes.
- 2 out of 5 first-time buyers purchased a distressed property.
- 2 out of 3 sellers paid at least part of the buyer’s closing costs.
- 1 in 4 had help from their family for the down payment.
If you’re interested in learning more about the new tax credit or about homes in your area, speak with a local real estate agent soon.
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