Part Two of “Clarifying the $8000 Tax Credit for First Time Home Buyers”
It has been two weeks since I posted my first clarification. After numerous readings of the abbreviated as well as the detailed versions, some items were still not clear to everyone.I have received calls as well as numerous e-mails. Hence, I am writing this post, with the intent to help those individuals, who did not have time to read the documents and/or call the National Association of Realtors for clarification.
The ‘Home’ must be the principal residence of the buyer. It can be a Single Family Residence, a Condominium, a CO-OP or a townhouse. The home must be located in the United States. Vacation homes and rental properties are excluded.
It does not matter if it is a new construction or not the “purchase date” is the date of close of Escrow. In other words the date you occupy the home must be before December 1, 2009. The question a lot of people were wondering why November 30th,2009 the Government anticipated of running out of funds by that date.
Interestingly there is also Income Limits for Single Filers as well as Married Filers. What this translates to is, if you are single and making over $75,000 and couple making over $150,000 the credit is proportionately reduced as the income approaches the limit of $95,000 and $170,000 respectively.
In conclusion there is also a clause: if the home is sold prior to three years of ownership, the tax credit must be repaid. Period! This is designed to prevent flipping homes in order to get the tax credit. Should you have any more questions feel free to contact me directly or via comments below?
If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 (USA) or email me at EndreBarath@TheMLS.Com or visit one of my websites at http://www.endrebarath.com