Miracle on Main Street

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Dear Sue,

My son is a first time buyer. He has been looking for a home for over a year. He has made several offers only to be beat out by investors with cash.

He wanted to get in on the $8000.00 tax credit for first time home buyer’s. I told him that it expires at the end of December. He said that the tax credit was not only extended, it was expanded to include existing homeowners.

Frankly, I find that hard to believe. Is it true?

Skeptical Sam

Dear Sam,

You might be thinking of the $10,000.00 state tax credit for purchasers of new homes. That sweet tax credit is no longer available.

The $8000.00 federal tax credit due to expire at the end of the year was extended and expanded to include existing homeowners. The extension and expansion is a Miracle on Main Street!

The first-time homebuyer’s tax credit is now available for homes purchased before April 30, 2010 and closed by June 30, 2010.

Single taxpayers with incomes up to $125,000.00 and married couples with income up to $225,000.00 qualify for the tax credit.

The $8000.00 tax credit is for first-time homebuyers or someone who has not owned a principal residence during the three-year period prior to the purchase.

To qualify, the first-time homebuyer’s must live in the home as their primary residence for at least three years.

A $6500.00 tax credit is now available for homebuyer’s who purchase a home before April 30, 2010 and close by June 30, 2010. The credit is for primary residences only.

The $6500.00 tax credit is for any homebuyer who has lived in their current residence for five consecutive years out of the eight years that they have owned their home.

I recommend that you consult with your tax professional for complete details. The tax credit guidelines and restrictions for the federal tax credit can be found at www.FederalHousingTaxCredit.com.

It looks like your son is on target! Up to date information on State and Federal tax credits can be a matter of good home $$’s and Sense.