Peter

The clock is ticking on the opportunity to take advantage of the federal government’s extended and expanded tax credit for first-time homebuyers and current homeowners.

 The original tax credit of $8,000 for first-time buyers has been expanded to include a $6,500 credit for qualified current home owners.  Buyers must purchase a new or existing home prior to April 30, 2010.  If a binding sales contract is signed by April 30, 2010, home purchases completed on or before June 30, 2010 will qualify. 

 For the tax credit program, the IRS defines a first-time buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.  Repeat or move-up buyers must have lived in the same principal residence for five consecutive years during the eight-year period that ends when the new home is purchased. 

 For sales after November 6, 2009, income limits for the full $8,000 credit for first-time buyers are $125,000 for single taxpayers and $225,000 for married taxpayers filing join returns.  Joint filers with income up to $245,000 and single filers up to $145,000 are eligible for a reduced credit. 

 For complete details, visit the National Association of Home Builders’ website at www.FederalHousingTaxCredit.com or contact an experienced real estate professional with The Kentwood Companies at any of our three metro Denver offices.