What would YOU do with an extra $8,000 in your pocket?

That's exactly what I want you to think about as you consider how you can take advantage of the Extended Home Buyer Tax Credit that was passed by Congress. The credit was issued as part of a plan to stimulate the economy and this extended incentive expires on April 30, 2010.

But I thought this was just for first-time home buyers?

Unlike the former credit, which expired at the end of 2009, this Extended Home Buyer Tax Credit enables current home owners to get up to a $6,500 piece of the pie! Of course, first-time home buyers are still able to receive up to $8,000 when they purchase a home. In a nutshell:

• If you're a FIRST-TIME HOME BUYER, you may qualify for up to $8,000 when you buy a home between November 7, 2009 and April 30, 2010.

• If you're a CURRENT HOME OWNER, you may be eligible for up to $6,500 when you purchase a house between November 7, 2009 and April 30, 2010.

Pretty sweet, huh? Bet you're wondering where the catch is...

Okay, so you've been taught that if something seems too good to be true, then it probably is. You want to know exactly how to qualify for these credits? Yes, there are some special considerations, in addition to the time deadline of April 30, 2010. Take a look at this 'checklist' to see if it applies to you.

Okay, you convinced me. This is a great opportunity - but I still have questions!

Beautiful! We have answers! In fact, here's a few of the frequently-asked questions we've heard:

Q. What properties are eligible for the Extended Home Buyer Tax Credit?

A. Primary residences (homes you plan to LIVE in - not rental properties), including single-family homes, condos, townhomes and co-ops.

Q. How much money can I qualify for?

A. First-time home buyers can get up to $8,000; current home owners may receive up to $6,500.

Q. How do I know how much of a credit I'll receive?

A. It's determined by two (2) factors: the price of the house you're buying and your income. You can only get the credit on a home purchase for $800,000 or LESS. If you're a single home buyer, you are eligible for the maximum tax credit if you have an income up to $125,000. If you're married, your combined income has to be below $225,000. (This is different from the 2009 First-time Home Buyer Tax Credit.)

Q. Wow - I make too much money for the maximum tax credit! Is there anything I can do?

A. Before you write an ugly letter to Uncle Sam, you may be able to receive a PARTIAL credit! For single home buyers, the amount of the credit decreases with an income ranging between $125,000 and $145,000. Married home buyers may get this partial credit if their combined income is between $225,000 and $245,000. The amount of the credit you'll receive in these cases goes down as you get nearer to the maximum allowed income level. If you make over $145,000 as a single home buyer or $245,000 for you couples, you're not eligible for the tax credit. (But on the bright side, we can still help you find a house!)

Q. Let me get this straight - I have to buy a home and close on it before April 30, 2010?

A. Actually, as long as there's a written and binding contract on a house before April 30, 2010, then it's all good. Of course, you still have to close on the house on or before June 30, 2010, so don't think you'll slip in at the last minute. In fact, we advise against that!

Q. Why do you advise against waiting until the deadline's closer?

A. When this last deadline hit, closings were delayed by weeks, especially if you were going through a 100% Financing program. Basically, the system got swamped! If you want to make sure you get in under the deadline, you'd do well to start now so that you don't have a lot of last minute issues that'll only stress you out and rob you of the joy and excitement you should be having in the purchase of a new home!

Q. Does this credit have to be repaid?

A. The simple answer is: no. BUT - you do have to remain in the house that you purchase, using it as a primary residence, for THREE (3) years or more. If the home is sold during this time period, the full amount of your tax credit will be taken out of the sale.

Have other questions not covered here? Feel free to Contact Us!

^*If you purchased a home between January 1, 2009 and November 6, 2009 and you'd like to see if you qualify for the credit that was in place, please see 2009 First-time Home Buyer Tax Credit. (REMEMBER, current home owners were not eligible!) Also, although it's like beating a dead horse, remember that the deadline for this Extended Home Buyer Tax Credit is APRIL 30, 2010!
^#If you know you'll need to sell before you can buy and take advantage of this opportunity - and you haven't listed your house yet - take a peek at our Marketing Plan. Of course, to get your home sold in plenty of time so that we can get you into your new house by the deadline (of APRIL 30, 2010 - as if you'd forget!), we need to ACT QUICKLY! Contact Us TODAY!

Yes, yet another disclaimer. We've tried to keep our information here as accurate and easy to understand as possible. We'd like to note, however, that we're Realtors - not IRS tax experts or accountants or your Uncle Bob. The information here should be not be considered completely infallible; sometimes, facts change! If you'd like to view the IRS information on the tax credit, you may begin here. For specific questions or additional information, please contact your tax professional - or you may consult the IRS at 800-829-1040.