The expanded home buyer credit is not exclusively for first time home buyers and includes what they’re calling “repeat” buyers. It seems not everyone knows that the expanded homebuyer credit allows eligible individuals to claim up to $6500 tax credit on their 2009 or 2010 tax return… And since this is a limited time offer, with little chance of being extended again, I figured I’d do my part to get the word out.
Here’s the lowdown on some of the details: To be eligible for the up to $6500 homebuyer tax credit, you need to have resided in your home as a principal residence for 5 consecutive years in the last 8 years previous to buying the replacement home. And most importantly, you will need to have an accepted offer on a replacement home by April 30, 2010 and close on that home by June 30, 2010. (This is where the limited time offer comes in). The home also needs to become your principal residence.
The Iowa City real estate market is doing well when it comes to the sale of lower priced homes, we’re hoping this will impact the home sales of higher priced homes as “move up” buyers upgrade and buy bigger homes. Don’t let that fact stop you if you’re thinking of downgrading and buying a smaller home though – You too are eligible for the tax credit!
Another notable point is that you don’t need to sell your home to be eligible for the credit. This takes some of the stress out of the situation if you need to sell your home and the buyer can’t close until after June 30. It also gives you the option of renting your current home and with rent prices rising in the area I know this is something some folks are thinking about.
There are a couple of changes in the expanded homebuyer tax credit compared to the tax credit that expired on November 30, 2009. The first is that the income levels of individuals able to claim the tax credit have risen. A single person may now earn up to $125,000 and married couples $225,000. (Here’s a post about the phase out range). There is also now a cap of $800,000 on the sale price of a home.
For more detailed information and FAQ’s, visit www.Federalhousingtaxcredit.com.
If you are thinking of listing your home for sale in the Iowa City area, more than likely you’d like to know how our market is trending. Below are links to market reports for Iowa City, Coralville and North Liberty for 2009. They include the yearly numbers along with the quarterly numbers. There was a lot to report with a whole year to look back on!
Iowa City Real Estate Market Report December 2009
Coralville Real Estate Market Report December 2009
North Liberty Real Estate Market Report December 2009
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