Confused about the Tax Credit Extension?
Updated: November 6, 2009
Tax Credit Help Center
But Buffalo Realtors are saying it is so on Facebook!
The last couple of days I have seen tweets and posts on Facebook that the Tax Credit has been extended and encouraging people to call the poster about buying a Buffalo home. But there is a problem… It hasn’t passed yet. Seeing misinformation regarding the First Time Home Buyer Tax Credit all over the place it is frustrating and who is the consumer to believe? I have been fielding emails and calls from consumers that are believing what they see on Social Media. I think there are several people using Social Media who would benefit from a fact checker.
Read Also: Senate likely to Homebuyer’s Tax Credit
As a real estate blogger, I know that I have a number of people that read my site and are dependent on getting accurate infor
mation. I take my time to research information and confirmation before you will see me print something. I went as far as to say “one step closer” on my Facebook page and I debated about saying that much. So it was disturbing to me to see so many just go reporting that it has been passed when in fact it isn’t a law until the President signs it after both the House and the Senate vote upon it. In case you need a quick review of how a Bill becomes a Law Schoolhouse Rock does a great job:
A fellow Real Estate Blogger, Matt Stigliano wrote something that I think says it all:
We require clients to trust us as we go about our work in helping them buy and sell their homes, yet we give them a great reason to distrust us with things like this. We will destroy our own industry if we let ourselves. … You may not save everyone, but at least you’ll be fighting to save our industry as a whole. And who knows, someone might just hear you and think, “hmmmm…I’d like to work with that person.”
What does the new tax credit look like?
Right now the first time home buyer tax credit extension, here is the latest:
- The tax credit would be $8,000 for first-time home buyers and $6,500 for move-up buyers (from December 1, 2009 to April 30, 2010).
- Move-up buyers will be eligible, so long as the home they are leaving has been used as their principal residence for 5 years or more.
- The tax credit would sunset on April 30, 2010. However, there would a binding contract rule that will permit those with contracts as of April 30th to qualify for the credit so long as they complete the transaction within 60 days.
- The income limits for both first-time home buyers and move-up buyers would be $125,000 for single return and $225,000 joint return.
- Cost of the home may not exceed $800,000 to be eligible.
- For purchases made in 2010, taxpayers would be able to claim the credit on their 2009 income tax return.
- Home buyers would not have to repay the credit, provided the home remains their principal residence for 36 months after the purchase date.
- The amendment includes a military waiver provision, meaning the recapture provision would not apply in the case of a member of the Armed Forces, military intelligence or Foreign Service who is on qualified official extended duty. In addition, members of the military who have been deployed overseas for 90 days or more in 2008 or 2009 would have until April 30, 2011, to claim the home buyer tax credit.
- The amendment also includes anti-fraud language that provides math authority to the IRS to do greater oversight during the processing of the return rather than waiting for an audit situation. The amendment requires the taxpayer claiming the credit to be 18 or older as well as requiring a HUD-1 settlement statement to be attached when claiming the credit.
This is all subject to change. Remember it is not law until the President signs it.
Want more information about the Tax Credit? Interested in finding out the current market value of your single family home, condo or investment property? Then call Colleen Kulikowski at (716) 650-0051 to discuss what is happening in today’s Western New York Real Estate Market. We would be happy to give you a personalized Comparative Market Analysis for your home or assist you to purchase a home. View additional Buffalo Area Home Sales Statistics here.
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