Knoxville Home Buyers You Only Have 30 Days……
To Take Advantage Of The Federal Tax Credit
The credit ranges up to $8,000 for first-time homebuyers, and up to $6,500 for existing homeworkers who have lived in their main home for 5 of the last 8 years.
Claiming the federal tax credit is a two-step process. First, you must be under contract for a new home on or before April 30, 2010. Then, you must close on said home on or before June 30, 2010.
There are no exceptions on the dates (except for certain members of the military).
Timeline aside, homebuyers and the subject property must also meet minimum requirements in order to be tax credit-eligible:
- You can’t purchase the home from a parent, spouse, or child
- You can’t purchase the home from an entity in which the seller is a majority owner
- You can’t acquire the home by gift or inheritance
- Each buyer in the purchase must meet eligibility requirements
- The home sale price may not exceed $800,000
- Buyers may not earn more than $125,000 as single-filers; $225,000 as joint-filers
The complete eligibility checklist is published on the IRS website. Or, if you find IRS-speak too difficult, make a phone call to your accountant. Asking a tax professional’s advice on a tax-related matter is never a time-waster.
And lastly, don’t forget that if you’re claiming to federal tax credit for home buyers, it’s a tax credit and not a deduction. This means that a tax filer who qualifies for the full $8,000 and for whom the “normal” federal tax liability is $8,000, will owe no federal taxes in 2010 to the IRS.
If you’re an active buyer in West Knoxville, or anywhere else in the country , mark your calendar for April 30, 2010. It’s 30 days from now and, as the date gets closer, buyer traffic will increase. The likely result is higher home prices and more difficult negotiations. The best time to act may be today.
There has never been a better time to buy a home in the Knoxville Area than right now. The rates are low, prices are low and their are plenty of homes to choose from on the market. Another reason is the tax credit available not just to first time home buyers but move up buyers that I talked about in an earlier post. Considering all of the above NOW is the time to get out there and start shopping around for a new home.
Check out my 5 Step Program to make your buying experience smooth and painless. It is FREE and will help you. Call me at 865-675-8326 or Rick@TheBigOrangePress.com I would love to help you find a new home