If you’re considering a move on a Lakeland mortgage in an effort to take advantage of the homebuyer tax credit, you be advised that the clock is ticking.
If you’ll recall – back on November 6, 2009, Congress granted and extension and expanded the First-Time Home Buyer Tax Credit program. As of now, you have 100 days left to claim it.
Providing a tax credit of up to $8,000, the deadline for homebuyers has been moved forward to spring, requiring Lakeland homebuyers to have a contract on a home by no later than April 30, 2010. You’ll also need to be sure that you close on your Lakeland home by no later than June 30, 2010.
“Move up” homebuyers in Lakeland also stand to gain from this tax credit. If you’ve lived in your home for 5 of the last 8 years, then the IRS will allow you to receive a tax credit of $6,500.
Important Facts to Know About this Tax Credit:
Buyers should keep the following things in mind when determining whether taking advantage of this tax credit is a viable option:
- You may not buy your home from a parent, spouse, or child
- It is not permissible to purchase your home from an entity in which you have a majority ownership position
- Homes acquired through a gift or inheritance are not eligible
- All individuals involved with the purchase of the home have to meet eligibility requirements
There are also a few new updates to keep in mind:
The sales price of the home you buy cannot be more than$800,000. You must also make less than $125,000 as a single-filer and $225,500 as joint-filers.
It’s also important to remember that this program provides for a true tax credit — not a deduction. What this means is that if you are eligible for the full $8,00 credit, and your tax liability is,$5,000, you will get a $3,000 refund from the U.S. Treasury at tax time.
For a complete list of qualifying criteria, visit the IRS website. Talk this move over with your accountant or other qualified tax professional. Then put a big red circle on your calendar around April 30, 2010. You have 100 days left!