I sold a NJ home I lived in for 8 yrs. That was 4 yrs ago. With that money, I bought a home in Fla.I only occupied that for a few months. I left it empty and was forced to move back to NJ.(meanwhile, my sister let me reside at her home)I was not able to sell it for 3 1/2 yrs. I just did two weeks ago. I lost about $200,000.00. I am now in the process of buying a small home in NJ. I am paying $135,000.00 for this house.
Am I eligible and for how much? I am totally confused with the rules. Will I slip through the cracks since my last unlived-in home was only owned for 4 yrs?
Am I eligible and for how much? I am totally confused with the rules. Will I slip through the cracks since my last unlived-in home was only owned for 4 yrs?
Good Monday morning to you!
I'm sure you've heard about the credit extension for 1st Time Buyers and now new buyers...here's a quick overall summary for you to review.
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:
Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream.
Who Qualifies for the Extended Credit?
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
If you purchased a home between January 1, 2009 and November 6, 2009, please see: http://www.realtor.org/home_buyers_and_sellers/first_time_home_buyer_tax_credit_2009_info
Which Properties Are Eligible?
The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, town homes, and co-ops.
How Much Is Available?
The maximum allowable credit for first-time home buyers is $8,000.
The maximum allowable credit for current homeowners is $6,500.
How is a Buyer's Credit Amount Determined?
Each home buyer’s tax credit is determined by tow additional factors:
Price
Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.
Buyer Income
Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.
These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you purchased a home between January 1, 2009 and November 6, 2009, please see: http://www.realtor.org/home_buyers_and_sellers/first_time_home_buyer_tax_credit_2009_info
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.
Can a Buyer Still Qualify If He/She Closes After April 30, 2010?
Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.
Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.
Hope this helps you gain some understanding. If I can serve you or anyone you may know this week, please let me know.