Buyers First Tax Credit Extension: more fuel for the Charleston, SC market
We had good news in the housing market, last week! $ 8,000 for the first time homebuyer tax credit is extended until April 30, 2010. This extension is good news especially for first time buyers taking advantage of the credit.
But even if you are not eligible because they know they will benefit indirectly from it. It was a very effective incentive for homes sold in Charleston, and real estate agents, we have seen the results firsthand in our region. The expansion is expected help to continue the healthy growth we have seen the housing market in Charleston last month.
I've included more details below the extension of credit. It is important to note that this walk, there are more arrangements to meet in relation to tax credit source.
1) The IRS defines a first-time homebuyer as someone who does not own a principal residence for three years before the purchase.
2) The amount equals 10 percent of home purchase price, up to $ 8,000.
3) The purchase price of the house should be $ 800,000 or less.
4) The calendar includes sales from January 1, 2009 and on or before April 30, 2010. However, if a sales contract was signed April 30, 2010, a buyer may still qualify if it ends June 30, 2010. Buyers who are in the military have special extensions to these deadlines and be sure to tell your lender if you meet this requirement.
5) For homes purchased after January 1, 2009 and on or before November 6, 2009: The single tax payers must meet the income limit of $ 75,000 (for married joint return, your income must not exceed 150,000 dollars).
6) For homes purchased after November 6, 2009 and on or before April 30, 2010: Taxpayers can not exceed the limit income of $ 125,000 (married couples filing jointly or not exceed $ 225,000).
7) The main advantage of a tax credit is that it works as a dollar per dollar of benefits. If it were a tax deduction only reduce your tax liability and will only save $ 1,000 to $ 1,500 in the long term. Therefore, you are a buyer for the first time housing for all eligible credit. If you owe $ 8,000 in income taxes eligible for credit tax of $ 8,000, you owe nothing.
The tax credit is refundable, which means you can receive a check for the tax credit if you have little or no income. So let's say that you are eligible for a tax credit of $ 8,000, and you have $ 3,000 in income taxes. You can always get a check for $ 5,000 's!
About the Author
Lee Keadle is a Realtor with Carolina One Real Estate. He works in the Summerville real estate market and also specializes in Mount Pleasant homes for sale.
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