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Office Location Ron Ogden, Associate Broker
RE/MAX Metro
110 North Main Street
Bountiful, Utah 84010
Phone: (801) 891-1472
Fax: (801) 296-1342

Federal Tax Credit Expanded for Utah Home Buyers

Posted by Ron Ogden at Dwell Utah on Thursday, November 12th, 2009 at 12:14pm.

For anyone considering buying a home in the next few months:  Great News!  President Obama just signed into law an extension and expansion of the popular economic stimulus incentive for home buyers.  Set to expire on November 30, 2009, the original $8,000 tax credit incentive has been extended to homes that are under contract by April 30, 2010 and that close by June 30, 2010.  Further, the incentive has been expanded to provide up to $6,500 in tax credits for repeat (i.e., non-first time) homebuyers.  Restrictions do apply, so read further for all the details.

Buy A Home Now And Get $8000 Government Incentive

Tax Credit Available for First Time Buyers: For 1st time homebuyers, you can receive ten percent of the purchase price of your home, with a maximum credit of $8,000.  A first time home buyer is defined as someone who has not owned a home in the previous three years.

Tax Credit for Non-First Time Buyers:  NEW!  A tax credit of $6,500 is now also available to non-first time homebuyers, as long as they have used the home they are selling or vacating as a principal residence for five consecutive years out of the last eight years. The credit cannot be used for homes costing more than $800,000.  Note the word "vacating".  You do not need to sell your existing home to qualify for the credit, though you do need to "vacate" the home as your primary residence.  Your new home must be your primary residence.

Important Dates for Qualifying: To qualify for the credit, you must enter into a purchase agreement for the new home by April 30, 2010, and you must close on the sale by June 30, 2010.

Military Deadline Extension: To accommodate the challenges faced by members of the military serving overseas, military who have served outside the U.S. for at least 90 days from January 1, 2009 to May 1, 2010 will have a one year extension to take advantage of this tax credit incentive.

Qualifying Income Limits: To qualify for the full tax credit incentive, annual income cannot exceed $125,000 for individuals or $225,000 for joint filers.  Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for a reduced credit.  Above these amounts, no credit is available.

Application Procedure: Taxpayers will claim the tax credit on their federal income tax returns. The credit is fully reimbursable:  if the credit exceeds the amount you owe in taxes, the government will write you a check for the difference.  Even if you owe no taxes, if you qualify for the credit, you may still receive a check from the IRS for the full amount of the credit (contact a CPA for professional advice).

Utah Home Values:  Low Prices and Tax Credit Incentives = Smart Purchase! 

With Utah home prices at the lowest levels in years, now may be a good time to consider buying a new home.  And with the expanded and extended homebuyer tax credit, the values are even better.  If you are thinking about taking advantage of the government's incentives and would like to look at your home buying options, please give me a call.  I'll be happy to discuss how this incentive may work for you and assist you in finding a home that meets your needs.  Call or text me at 801-891-1472 or email me at ron.ogden@DwellUtah.com.

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2 Responses to "Federal Tax Credit Expanded for Utah Home Buyers"

Renee Tuke wrote:
Thank you for your input. I was not aware that a non-first time homeowner was also available to receive a tax credit. This could jump start a reason to look again at home buying this year. Thanks again........

Posted on Monday, November 16th, 2009 at 3:43 PM.

Salt Lake Home Sales Increase wrote:
[...]year earlier.Some of this increase can be attributed to a last minute rush to take advantage of an expiring home buyers tax-credit.  (But not all, since the tax-credit was extended throught the middle of next year.) [...]

Posted on Tuesday, February 16th, 2010 at 10:21 AM.



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