Idaho Homes And Money Blog

What is the non-first-time homebuyer tax credit?

The non-first-time homebuyer tax credit is a refundable federal tax credit for current and former homeowners who do not qualify for the first-time homebuyer credit. To qualify, you must have owned and lived in your previous home for at least five consecutive years of the eight years before the purchase. The tax credit equals 10% of the purchase price, up to a maximum of $6500 ($3250 each if married filing separately).

You can claim the credit if you buy a home after November 6, 2009, sign a binding sales contract before May 1, 2010, and close before July 1, 2010. Your new home does not have to cost more than your previous home. You do not have to sell your previous home to be eligible for the tax credit, but you must live in your new home as your principal residence for at least three years.

Who is eligible for the non-first-time homebuyer tax credit?

To be eligible for the non-first-time homebuyer tax credit, you must meet all of the first-time homebuyer eligibility requirements except for the rules about previous homeownership and purchase dates. In place of those rules, you must:

• have owned and lived in your previous home as your principal residence for at least five consecutive years of the eight years before the purchase
• buy a single-family principal residence in the U.S. after November 6, 2009, sign a binding sales contract before May 1, 2010, and close before July 1, 2010.

The Tax Gift Has Been Extended!

Today, the House of Representatives passed legislation to extend and expand the $8,000 first-time homebuyer tax credit, which was approved by the Senate this week. The legislation will be sent to the President, and upon his signature, made law.

Homebuyers will qualify for the tax credit until April 30, 2009 (as long as they have entered a binding contract), and have an additional 2 months (until June 30, 2009) to close the transaction. Borrower income limits have also been increased to $125,000 for individuals and $225,000 for couples (up from $75,000 and $150,000 respectively under the current program). The legislation also includes a tax credit not exceeding $6,500 for move up buyers who have owned their current homes for at least 5 years.

To make sure and clear up any confusion, this gift is actual cash that will be directly deposited into your account. It is not a tax reduction or anything of the sort.

With home prices and interest rates at an all time low, this not only the time to buy but this gift adds a cherry on top!

Call our team to learn more about how you can benefit from this tax gift.

208 321-4161

The first time home buyer tax credit extension and expansion is ALMOST done!  It has been a long, winding road but we have almost reached the destination.  Diana Olick of CNBC reported today that it is almost a done deal that the extension and expansion will be signed on Friday.  Lawmakers in the Senate moved closer to signing the bill by voting 85-2; this would extend the home buyer tax credit until April 2010 rather than November 30th, 2009.

The next step is for Senate Republicans to finalize the vote; this could be interesting as some of these Republicans are unhappy with the Democrats for blocking their amendments to the plan.  With that being said, many analysts feel that we are going to see this extension sealed due to the Senate vote last night.

The new plan will extend the current $8000 tax credit for new home buyers through April 30th and will also offer a $6500 tax credit for move up buyers who have been in their current residence for over five years.  This extension could be very important in the continued effort to stabilize the housing market.  Not only are first time home buyers going to receive a tax credit but so will “move-up” buyers; now it is time to find out if this will help to increase home prices.