Congress has extended the $8,000 first time homebuyer tax credit through April 30, 2010. A new $6,500 tax credit program has been created for repeat or step up buyers who are purchasing a principal residence if they have been residing in their current residence for five consecutive years out of the past eight.
Home buyers must sign a purchase contract before May 1, 2010. Active military personnel have until June 30, 2010. Homes purchased must be under $800,000.
In order to claim the full tax benefits, the income of single taxpayers must be less than $125,000. For couples the income eligibility maximum is $225,000. Buyers can claim the tax credit on their 2009 or 2010 tax return.The tax credit does not have a repayment requirement, but homebuyers must use the acquired home for at least three years or face a recapture declaration of the credit amount.
The tax credit is a refund situation. Therefore, the homebuyer can claim the credit even if they owe little or no income tax. The home buyer would (potentially) receive a check.
Let us hope that this additional tool will serve to stimulate the housing market and generate more inspection transactions for all during the first part of 2010
Home Inspection Atlanta www.findmeaninspector.com
