Now homeowners can enjoy a little piece of the federal government’s tax credit pie. The initial $8,000 tax credit for first-time home buyers has been extended through April 2010 and now includes a $6,500 tax credit for current homeowners.
The extended and expanded tax credit includes the $6,500 windfall for buyers who have owned their existing homes for at least five years. This allows people to sell homes and do a lateral or buy-down move. Both first-time buyers and current homeowners can now sign a purchase agreement by April 30 and close by June 30, 2010 in order to take advantage of the credits. So whether you’re a first-timer or current owner, incentives are now in place, and the best place to begin your search for Denver real estate is The Kentwood Companies’ website at www.DenverRealEstate.com.
To qualify for the tax credit, the income limit for single taxpayers is $125,000, and the limit for married taxpayers filing a joint return is $225,000. The tax credit amount is reduced for buyers with a modified adjusted gross income above those limits. To determine modified adjusted gross income, see IRS Form 5405 on the Internet. Home buyers can claim the tax credit on their federal income tax return.
Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his or her home pay. This money can then be applied to the down payment.
HUD will allow buyers using FHA-insured mortgages to apply their anticipated tax credit toward their Denver home purchase immediately rather than waiting until they file their 2009 or 2010 income taxes to receive a refund. These funds may be used for certain down payment and closing cost expenses.
The Kentwood Companies works closely with Wells Fargo Home Mortgage and our leading real estate professionals can provide more comprehensive details on the extended tax credit program. Our service-oriented agents can show you a variety of Denver homes, and those relocating to Denver can enjoy award-winning service from our relocation department.
Remember, the expanded tax credit that includes a $6,500 credit for current Denver home owners will expire on April 30, 2010, so now is the time to take advantage of Uncle Sam’s home buying stimulus package. Start your Denver Real Estate search today by visiting www.DenverRealEstate.com.