Gwinnett County, Georgia Real Estate > Gwinnett County, GA Homes

2 Million Americans Expected to Take Advantage of Extended, Expanded Homebuyer Credit

RISMEDIA, December 2, 2009—More American homebuyers will get tax relief thanks to changes made to the First-Time Homebuyer Credit. H&R Block advises the popular credit is now more accessible to existing homeowners and first-time homebuyers in three ways:

1. Through a tax credit worth up to $6,500 for existing homeowners in the market for a new home.
2. Through a new closing deadline of April 30, 2010- extended from Nov. 30, 2009- for the $8,000 First-Time Homebuyer Credit. Also, a special provision gives taxpayers two extra months to close if they’ve entered into a contract by April 30, 2010.
3. By increased phase-out limits that start at $125,000 for singles and $225,000 for married filing jointly- up from $75,000 and $125,000 respectively. The new limits apply to homes purchased after Nov. 6, 2009.

Under the new requirements, an estimated 2 million Americans are expected to claim the tax benefit. The IRS estimates 1.4 million people have already claimed earlier versions of the First-Time Homebuyer Credit.

“From seniors looking to downsize, to families wanting to move, to those shopping for their first home, this credit paves the way for more people to positively impact their taxes through the benefits of homeownership,” said Amy McAnarney, executive director of The Tax Institute at H&R Block.

Existing homeowners must have owned and lived in their current home continuously for five of the last eight years to claim the credit of up to $6,500. Taxpayers must close on the replacement home between Nov. 7, 2009 and April 30, 2010. If taxpayers have entered into a contract on a home by April 30, 2010, they have until June 30, 2010 to close.

“The tax credit of up to $6,500 for current homeowners could ease the sting of those wanting to move but worried they’ll take a loss in the down market,” McAnarney said. “More first-time and existing homeowners can take advantage of this valuable tax credit under the new law.”

A house must be valued at less than $800,000 to be eligible for the new $6,500 or the $8,000 credit for first-time homebuyers. Taxpayers can claim the credit on their 2009 or 2010 tax returns. A completed settlement statement must be attached to the return in order to claim the credit.

Owning a home can trigger many other tax benefits. Taxpayers should consult their tax professional to ensure they receive all the credits and deductions a new house affords them.

Expanded Home Buyer Tax Credit: Small Window, Big Opportunity

Business Building by Margaret Kelly Print Article

RISMEDIA, January 8, 2010—The countdown is under way. As of January 1, you have four months to promote the expanded U.S. Homebuyer Tax Credit and get your qualified buyers under contract by the April 30 deadline.

Fueled by the original November 30, 2009 deadline, sales of existing homes had increased steadily since April, with the exception of a slight dip in August. NAR surveys show that about 30% of all closed transactions during that period involved first-time buyers.

In November, Congress extended the tax credit and amended it to include some repeat buyers in hopes of securing a more sustained real estate upswing. However, the narrow window suggests none of us should count on another extension.

Here are some ways to ensure that you and your clients make the most of this opportunity.

Update Your Message
You’ve probably already begun updating marketing materials that show you’re the expert on the new rules. Your target audience should now include repeat buyers who can qualify for a $6,500 tax credit if they’ve lived in their home for five consecutive years of the last eight. Make sure homeowners understand that as long as they’re buying a new primary residence, they’re not required to sell their current home right away—or at all. In the meantime, they’re able to take advantage of today’s lower home prices and historically low interest rates.

Clear Your Schedule
As the new deadline looms, buyers will be looking for more attention and more of your time for showings. First-timers who were excluded from the $8,000 credit by the old income limits will be looking to join the action, too. The new limits are $125,000 for individual filers and $225,000 for joint filers. With the possible influx of repeat and first-time buyers, you’ll want to make sure you have systems in place to ensure everyone’s needs are met.

Be Diligent at Every Step
You don’t want any delaying issues to emerge, so stay on top of your closing checklist. Insist that lenders, inspectors, listing agents and other involved parties also stay alert, because your most motivated buyers will want to act quickly. Also, be sure to know the inventory inside and out on properties priced up to $800,000, which is the new home-price limit for the tax credit.

Over the next few months, focus on the tax credit’s enhancements and unprecedented advantages so that your buyer clients meet the deadlines and have you to thank for it.

Margaret Kelly, CRB, is chief executive officer of RE/MAX International, Inc.

For more information, visit remax.com.