I meet with Liz Ciardi, Home Mortgage Consultant with Wells Fargo Home Mortgage, this past week . She past on timely information about the Home Buyer Tax Credit that expires in April. The following is a summary of the Wells Fargo Home Mortgage Tax Credit information brochure:
Seize This Opportunity
Little time remains for you to take advantage of the Federal Home Buyer Tax Credit. Along with high affordability and low mortgage rates, tax incentives make now a great time for first-time and repeat buyers to purchase real estate. It also presents a good opportunity for sellers. Now is the time to make sure your home appeals to motivated buyers.
If you have not owned a home within the last three years, you may be eligible for a tax credit of 10% of the purchase price of your first home, up to $8,000.
The tax credit program has some additional incentives for those who purchase another home. You may be eligible for a tax credit up to $6,500 if you have owned and occupied your current residence for five consecutive years during the last eight years.
There are limits on the highest income you can earn and still be able to qualify for the full amount of the tax credit. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this, but less than $145,000 can receive a partial credit. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap, but less than $245,000 can also receive a partial credit. Qualifying buyers may receive the tax credit for properties with a maximum purchase price of $800,000.
Tax Credit vs.Tax Deduction
It’s important to consider that a tax credit is a dollar-for-dollar tax reduction, rather than a decrease in taxable income that would only save you a percentage of your deduction based on your tax rate. Better still, the tax credit is refundable, which means you can receive a check for the credit if you have little or no tax liability to offset.
To qualify for either of these tax credits, you need to act now! All contracts need to be in effect no later than April 30 and close no later than June 30, 2010.
Keep in mind the tax credit program includes a number of details and qualification guidelines; please consult your tax advisor for advice. Also, you may be able to benefit from other available housing-related provisions, such as funding for energy-efficient improvements. For more information or answers to specific questions, contact your trusted real estate professional today.
Click to see and download the Wells Fargo Home Mortgage Tax Credit Brochure Resource1-1
Liz’s contact ifo:Liz Ciardi Home Mortgage Consultant Wells Fargo Home Mortgage 3480 Stateview Blvd Fort Mill, SC 29715 803.396.4491 Tel 800.391.7969 x 4491 Toll Free 704.756.4059 Cell firstname.lastname@example.org www.lizciardi.com