Castle Rock Homeowners | New Tax Credit Offered to Homebuyers
Congress and President Obama have approved an extension for the Federal Tax Credit awarded to home buyers in the Castle Rock Colorado area. Here is an update of the qualifications needed to receive this tax credit.
Updated, January, 2010 - Not only has the tax credit been extended it has also been expanded to include current homeowners:
If you have not owned a primary residence in the last three years, or are a first-time Castle Rock homebuyer, the Federal government has opened a door for you! You may qualify for a tax credit of up to $8,000 for a single person and $4,000 credit for a married couple. The deadline to buy a home and receive this credit has been extended to April 30, 2010.
New to the tax credit is an opportunity for current homeowners. If you have lived in your current home for the last 5 years you are eligible to upgrade into a home and receive a tax credit in the amount of $6,500 for single person and $3,250 for married couple.
The deadline will be April 30, 2010, however if you have locked in a written binding contract by the April deadline you can have up to 60 days after that to close the deal.
But you aren’t eligible if your income exceeds a certain amount. For example, you can’t claim it if your modified adjusted gross income is $125,000 or more, or $225,000 or more if you’re married and filing jointly. Consult a tax advisor for more details as it pertains to your individual situation and to make sure you are eligible to claim the credit.
We would be happy to refer a CPA who will answer quick questions on the phone. Please give us a call so we can help you take the first steps toward the American Dream of owning your own home.
There is now a limitation on the cost of the purchase of the home which can not exceed $800,000.
The new guidlines state that you may not have a dependent purchase the property for you and there is an age limit of 18. Also you will now have to attach proof of purchase documentation to your tax return.
All of this is great news for homebuyers. It is a great time to buy with home prices going through an adjustment. There are many opportunities to purchase larger homes for smaller prices. We recommend saving money for a down-payment. FHA loans are available with as little as 3.5% down and credit scores of 580+. FHA also allows the seller to contribute up to 6% in closing costs. We recommend discussing your personal situation with a licensed Colorado lender for more information. We have lenders we have used and trust, so please allow us to refer several to you. You won't have to repay the credit unless “the home ceases to be your main home within the 36-month period beginning on the purchase date,” the IRS says. How does this work? Generally, the credit or 10% of the home’s purchase price, whichever is smaller.
Do not be discouraged by unfortunate situations in the economy – you determine the future of the housing industry and we would like the opportunity to help. Please call and interview me to be your Realtor ® by calling today. Peruse our website for more background information on our experience and testimonials from past clients. We look forward to hearing from you!
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