Sacramento home buyers, the Federal tax credit ends in 9 days on April 30, 2010. You MUST be in a binding contract by April 30, 2010 and you have until July 1st to close escrow in order to get the home buyer tax credit.
There was a change increasing the home buyer’s adjusted gross income effective Nov. 7, 2009 to $125,000 for a single home buyer and $225,000 for married couples. This new law increasing the gross income for home buyers states that first time home buyers (those buyers who have not owned a home in the past 3 years) may obtain a home buyer tax credit for $8,000 or $4,000 if married and filing separately. Also, included are move-up home buyers who sold their primary residence they lived in for the past 5 of 8 years to get $6,500 if single and $3,250 for married filing separately.
Remember to use IRS Form 5405 when filing and know there is a cap of $800,000 on the price of the house or condo in order to qualify for this tax incentive.
For home buyers who purchased homes and condo prior to November 7, 2009 the income adjustment does not apply. Your income level is $75,000 for single and 150,000 for joint fliers.
Due to some home buyers filing and committed fraud, no one is allowed to file electronically if asking for the home buyer tax credit but you must file paper returns, instead. Be sure to use IRS form 5405
Don’t waste anymore time, run don’t walk to an experienced Realtor ®. As of today, you ONLY have 9 days left. It takes time to get your offer on a house or condo approved by the home seller. No one knows if this tax credit will be extended and as a home buyer you don’t want to miss out on this great savings.
Never fear, there is the CA First Time Home Buyer’s Tax Credit that is suppose to begin May 1, 2010 for California home buyers.
Start your home search on Sacramento MLS and get the latest homes or condos for sale right into your email. Home buyers can also call or email Gena to set-up your home search for you. Let’s get started before you miss out on the home buyer and First Time Home Buyer tax credit.
As a Sacramento Realtor ® I always recommend home buyers contact their tax accountant to double checked if you qualify for the home buyer tax credit.
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