Real Estate Stimulus Package offers 2010 Home Buyers Tax Credits

Many of us (me included) don't even have our 2009 income taxes completed and filed (you can still e-file for free). But it's time to think ahead to next year's taxes! If you have been thinking about buying or building a new home, now is the best time to do it with the new 2010 Home Buyers Tax Credits announced.

As part of Obama's Real Estate Stimulus package, the first time home buyers federal income tax credit that was due to expire November 30th, 2009 has been extended and income caps have been raised.  It has also been expanded to include homeowners who have lived in their current property for over five years.  Written binding contracts to purchase must be signed and in effect by April 30th, 2010, and then the property must be closed on by June 30th, 2010.

For First-Time Home Buyers
Income Limits: $125,000 if single, $225,000 if married
Eligibility: May not have had an interest in a principal residence for 3 years prior to purchase
Limitation on Cost of Home Purchased: $800,000
Tax Credit Available $8,000 ($4,000 married filing separate)

For Current Qualifying Home Owners
Income Limits: $125,000 if single, $225,000 if married
Eligibility: Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
Limitation on Cost of Home Purchased: $800,000
Tax Credit Available: $6,500 ($3,250 married filing separate)

Unfortunately I don't qualify as my new house is only three years old, but if I did, I'd definitely consider building again! My brother and his girlfriend are taking advantage of the tax credits and are currently in the process of building a new home in Kansas City!

This post is sponsored by Coldwell Banker. All opinions are mine.

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