The Clock is Ticking – Home Tax Credit to Expire

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Are you on the fence about buying a home? Huge tax credits are scheduled to expire in the next couple of months. Here are some important details that you should know:

Tax Credit for First-Time Homebuyers:
• have not owned a home in last 3 years
• credit is 10% of purchase price
• maximum credit available is $8,000
• maximum purchase price is $800,000

Tax Credit for Current Homeowners:
• must currently own a home
• must purchase a new home
• credit is 10% of purchase price
• maximum credit available is $6,500
• maximum purchase price is $800,000

What are the New Deadlines?
• must be in contract by April 30, 2010
• must close escrow by June 30, 2010

Higher Income Limitations:
• Single tax filers up to $125,000 income
(partial credits are available for single
incomes up to $145,000)
• Joint tax filers up to $225,000 income
(partial credits are available for joint
incomes up to $245,000)

What’s So Great About a “Tax Credit”?
The benefit is that it’s dollar-for-dollar. Better still, the tax credit is refundable! For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

If you have any questions regarding the tax credit, pick up the phone and call us. We are here to help you take advantage of one of the greatest opportunities homebuyers may ever have.

CONTACT INFORMATION:
Jeff Ciccarella & Eric Olsen
Loan Officers
General Mortgage Corporation
(858) 673-5794