There is alot of information out there on the new tax credit advantages that a home buyer can take advantage of, but in my travels out and about it is definitely certain that not many really understand what it would mean to them individually and personally if they were to participate in a real estate transaction over the next 4 months (remainder of the tax credit). Everyone seems to know there is a tax credit available out there, but the general details of what the two credits are is another story. The National Association of Realtors is trying its best to get the word out, but it is really up the individual agents to get the point across to the folks they know and do business with or hope to do business with at some point. So here goes, and I will keep it simple as one only needs to get into the finite details when in the midst of a real estate transaction and taking advantage of the tax credit.
There are 2 tax credits available:
1. The first time home buyers tax credit (which most do know about). This is an $8,000 credit for a first time home buyer, the government definition of a first time home buyer is anyone who has not been an owner occupant for the last 3 years minimum. So it pertains to anyone who was a previous homeowner who sold their home a minimum of 3 years ago and have rented for the past 3 or more years, and of course someone who has never purchased a home before.
2. The repeat buyers tax credit of $6,500, this is the one that very few know about and certainly should as it pertains to 70% of American homeowners according to the National Govt. This tax credit is made eligible to anyone who has been a homeowner for at least 5 out of the previous 8 years and decides to sell and move their primary residence. It doesn't matter if you were to upgrade, downsize or move across the country, if you qualify you get the credit.
These 2 tax credits are very good and many are starting to realize them and take advantage of them, but there is a time limit attached. For eligibility of either tax credit, one must be under binder/contract of the home they are purchasing by April 30th, 2010 and have closed on the property (or take possession of) by June 30th, 2010.
This is the primary info that you need to know about the government tax credits, please call or email with any further questions or if you are not sure you qualify for one of the programs.