Now is the time to purchase a home!  Besides low interest rates and lots of choices, time is running out to take advantage of the real estate Tax Credit.  You must have a home under contract by April 30, 2010 and close on that home by June 30.

And, you don’t have to be a first-time home buyer to take advantage of the tax credit!

• Existing Homeowner Tax Credit - If you have lived in one home for five consecutive years out of the last eight, you may be eligible for a tax credit of up to $6500!  And, you aren’t required to sell your existing home, but you do have to establish the new home you purchase as your primary residence.  There is no rule stating that the purchased home must be higher in value than the original house.  If you’re downsizing, you may be eligible, too!
• Haven’t Owned a Home Lately? - If you owned a home at some time, but not within the past three years, you’re not left out!  You may be eligible for the $8000 tax credit.
• First-Time Home Buyers - If you’re considering your first ever home purchase, you may be eligible for the $8000 tax credit.

A qualified home is one which will be your principal residence with a purchase price of less than $800,000.  So, vacation homes and rental properties would not qualify for the tax credit - unless you plan to live in the new home you purchase and rent your existing home, for example.  And, there are rules about income, too.
 
Just how does this tax credit work?  This is a refundable credit, which means that if the amount of income taxes you owe on your 1040 Federal Income Tax form is less than the credit amount you qualified for, you will receive a check from the government for the difference.

As a qualified homebuyer, you can take the tax credit on either your 2009 or their 2010 income tax return.  If the home is purchased in 2010, but you want to use the tax credit against your 2009 taxes due, you can file an amended 2009 income tax form.

Keep in mind that if you sell the home, or it is no longer your principal residence within three years of the purchase, the tax credit must be repaid.

There are a number of ways to take advantage of the Tax Credit.  It could be just the thing you need to make that next move.  Call us at 310-863-9979 or use the form below to send an email, and we’ll review your specific situation to see how the tax credit can help you!

Nellie & Yanni