As you may have heard, Congress has approved and the President has signed an extension of the first-time homebuyer tax credit! Originally slated to expire on November 30th, the credit will now be available for eligible homebuyers through April 30, 2010.
Who’s eligible? First-time homebuyers, who are defined by law as buyers who have not owned a principal residence during the three-year period prior to the purchase. They may qualify for up to an $8,000 credit.
Existing homeowners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence may also be eligible for up to a $6,500 tax credit.
All homes with a purchase price of less than $800,000 qualify – including newly constructed and resale single-family detached, townhomes, or condominiums – provided the property will be used as the principal residence of the buyer. Vacation homes, rental and/or investment properties do not qualify.
The credit is refundable and does not have to be repaid unless the homeowner sells or stops using the property as their principal residence within three years after the purchase.
Buyers who closed on qualifying property after November 6th and before May 1st, 2010 are eligible to take the credit. Home purchases subject to a fully executed, binding sales contract signed by April 30, 2010 will also qualify, provided closing occurs prior to July 1, 2010.
We encourage you to contact a CPA for more information on the credit and to find out if you qualify.
In the meantime, it’s still a buyer’s market and one of our Buyer Specialists would love to help you find your first or next Hilton Head Island home!
[...] recently extended and expanded homebuyer tax credit has led to a spike in South Carolina home sales! The number of resale properties rose 18.1% in [...]