The first-time homebuyer tax credit, which had been extended and expanded last Fall to include existing homeowners expires on April 30, 2010.
If you've been considering buying a home or condo in the Sarasota real estate market in Bradenton, Lakewood Ranch, on Siesta or Lognboat Key or in Osprey or Venice Florida, you need to contact a competent Realtor® TODAY and get a home purchase contract finalized on or before April 30th or you're going to miss out on the opportunity to capture up to am $8,000 income tax credit if you're a first-time buyer or up to $6,500 if you're currently a homeowner.
And don't forget that, in addition to the requirement to have a home purchase under contract (that means signed by both the buyer and the seller) by April 30, you must also close on the sale on or before June 30, 2010.
Who qualifies as a "first time buyer" for as the $8,000 credit?
The law defines a “first-time home buyer” as one who has not owned a principal residence during the 3-year period prior to the purchase. For married taxpayers, the law tests the home ownership history of both the home buyer and his/her spouse.
If, for example, you have not owned a home in the past 3 years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the tax credit. However, there are exceptions. As an example, there is a possibility for unmarried joint purchasers to allocate the credit amount to any buyer who qualifies as a first-time buyer, such as if a parent jointly purchases a home with child. There are also rules about ownership of vacation or rental properties not used as a principal residence.
How is the amount of the first-time buyer tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000 but there are income limits.
So, you need to speak with a competent Sarasota Realtor to see if you do qualify.
Who qualifies as a existing homeowner for the $6,500 credit?
The law defines a tax credit-qualified existing or "move-up" home buyer as a person who has owned and resided in the same home for at least five consecutive years of the eight years prior to the purchase date of the new home. For married taxpayers, the law tests the home ownership history of both the home buyer and his or her spouse. That is, both spouses must qualify as long-time residents, with at least five years of principal residency for each. They do not, however, have to purchase a home that is more expensive than their previous home to qualify for the tax credit.
How is the amount of the tax credit determined?
The tax credit is equal to 10% of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit. And, yes, there are income limitations. If your income is above the limit, you may still qualify for a partial credit.
So, yes, you do need to speak with a competent Sarasota Realtor like Rich Stover to see if you truly qualify.
If you are still confused about whether you are eligible for either of these two home buyer tax credits, contact a competent Sarasota Realtor immediately. A Sarasota Realtor experienced in dealing with these types of situations, like Rich Stover can tell you after just a brief conversation whether or not you qualify.
But time is short, friends, so its definitely "Time to Get Moving.
Would you just like to know more about the Sarasota Florida real estate market in general, or the cultural, shopping or recreational amenities of Sarasota ? I'd be happy to send you my free Sarasota Florida Real Estate & Lifestyle Package. For more immediate assitance, call me directly at (941) 266-1799.
