First Time Home Buyer Tax Credit

By Ginny Mees

Mortgage HelpHey Ladies! Great News!! The Senate voted by a 98-0 margin to extend the First-Time Home Buyer Tax Credit while also expanding the credit to existing homeowners who want to move up to another home. This is great news…those of you who are thinking you missed the boat, you still have time! This is in addition to being able to write off the mortgage interest. If you have not discussed this with your CPA, I strongly urge you to take advantage of the low prices, and these unique credits, which will shortly be gone.

The original refundable credit, which was initiated in the financial stimulus package in February, 2009 was set to expire on November, 30, 2009. There has been heavy lobbying for an extension of the credit beyond this deadline. The extension for the existing $8,000 tax credit for first-time homeowners carries through until April 30, 2010, and it also includes $6,500 tax credit for existing homeowners who want to purchase a new residence. This provision has a stipulation that they need to have lived in their current home for five consecutive years within the past eight years.

There are some additional improvements such as the level of qualifying income has also been expanded, allowing individual taxpayers who make up to $125,000 and joint filers earning up to $225,000 to qualify. The earlier credit had been limited to individuals earning up to $75,000 and couples earning up to $150,000.

A smaller credit would also be available to individuals who make up to $145,000 and couples who earn up to $245,000.

Tax credits could be claimed for homes that cost up to $800,000.

The credit would be extended for an additional year for members of the armed forces who are away from home on extended duty.

So what does this mean for you? It means that housing prices are at an all time low, interest rates likewise are still at an all time low, you will earn a significant credit, you will reduce your tax bill to Uncle Sam by the amount of mortgage interest you pay every year, AND you will begin down the path toward independent wealth. So…what are you waiting for??April 30, 2010 will be the end of this tax credit so visit the website designed to provide single women the high quality network of professionals needed to make your dream a reality!

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 Ginny Mees has been a REALTOR for the past eleven years in the San Francisco Bay area, and she is the Founder of the Independent Women Homeowner network:


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