Reminder to Home Buyers: Tax Credit Expiring Soon
by CMBA President Steve Squire, Berscheid Builders, Inc.
Central Minnesota Builders Association (CMBA) wants potential home buyers to be aware that they still have the opportunity to take advantage of the $8,000 first-time home buyer or $6,500 repeat buyer tax credits, as long as they act quickly—the credits expire on April 30, 2010.
It’s not too late to take advantage of the home buyer tax credit, builders may still be able finish a home in time. The IRS provides an additional two months beyond the deadline to close the deal. Buyers who sign a sales contract by the April 30 deadline are still eligible if they close the sale of the home by June 30, 2010.
More people than ever before are eligible for a home buyer tax credit, estimates show that close to 70 percent of all potential buyers should qualify for some form of a credit.
“First-time” buyers don’t have to be buying their first home ever; they are defined by the IRS as those who have not owned a principal residence in the past three years. Repeat buyers may be eligible for a new $6,500 credit, as long as they have owned and lived in their current home at least five consecutive out of the past eight years.
The current credits also increase the income limits, enabling single taxpayers with incomes up to $125,000 and married couples earning up to $225,000 to potentially qualify for a full credit.
The National Association of Home Builders (NAHB) has a web site at www.federalhousingtaxcredit.com, which has received more than 6.5 million visitors since the site launched, provides basic information about the credits, detailed question and answer sections, and links to additional home-buying resources for consumers.
“If you’ve been considering buying a home for any reason, the home buyer tax credit, in addition to historically low interest rates and competitive home prices, make it an ideal time to buy,” said Squire, “the Tour of Homes in Central Minnesota is a great place to start.”
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I found my dream house. Now I would like to know what happen if my husband have not owned a principal residence in the past 3 years, but I owned a house in the last 2 years. Do we qualify?