Home Buying > Home Buyer Tax Credit Extension & Expansion

Home > Home Buying > First Time Home Buyer Tax Credit $8,000 in Frisco Texas

FEATURE	Jan 1 – November 30, 2009 Rules as enacted February 2009	December 1 – April 30, 2010 Rules as enacted November 2009
First-time Buyer – Amount of Credit	$8000 ($4000 married filing separate)	$8000 ($4000 married filing separate)
First-time Buyer – Definition for Eligibility	May not have had an interest in a principal residence for 3 years prior to purchase	-Same-
Current Homeowner – Amount of Credit	No Provision	$6500 ($3250 married filing separate)
Effective Date – Current Owner	No Provision	Date of Enactment
Current Homeowner – Definition for Eligibility	No Provision	Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
Current Homeowner – Home Purchase Price	N/A	There is no provision that the "repeat" homebuyer must purchase a property more expensive than the one sold. Only that the home purchase must be less than $800K.
Termination of Credit	Purchases after November 30, 2009.(Becomes April 30, 2010 on Date of Enactment.)	Purchases after April 30, 2010
Binding Contract Rule	None	Written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close
Income Limits	$75,000 – single, $150,000 – married, Additional $20,000 phase out	$125,000 – single, $225,000 – married, Additional $20,000 phase out
Limitation on Cost of Purchased Home	None	$800,000
Purchase by a Dependent	No Provision	Ineligible
Antifraud Rule	None	Purchaser must attach documentation of purchase to tax return

First Time Home Buyer & Repeat Buyer Tax Credit
QUESTIONS & ANSWERS Explained

All new first time home buyer and repeat buyer Tax Credit are effective immediately. It does not have to occur on December 1 2009 in order to qualify. All closings occurred on November 6 2009 qualifies for the new & improved first time home buyer and repeat buyer tax credit.

First Time Home Buyers

The $8,000 first time home buyer tax credit applies to home buyers that purchase homes at $80,000 or more. Anything less than $80,000, the tax credit that applies is 10% of the purchase price.

Repeat Buyers

There is NO PROVISION that stipulates that the Repeat Buyer must purchase a home more expensive than the one sold.
There is NO PROVISION that says the Repeat Buyer must sell the home before the new one close.
Qualifying sale of existing principal residence must be any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.

New Income Limits

For home purchases on or after November 6 2009, new income limits raised to Modified Adjusted Gross Income of $125,000 for a full refund and phase out adjustment up to $145,000 for single taxpayer.
Modified Adjusted Gross Income of $225,000 and phase out adjustment up to $245,000 for married taxpayers.

Purchase by a Dependent

There was no age limitation on the original bill and amended for the November Tax Credit. Taxpayer must be at least 18 years old to qualify for the credit. For married taxpayers, the taxpayer shall be treated as meeting the age requirement if the taxpayer or spouse meets the age requirement.

Repeat Buyers

There is no criteria that home buyers must "move up" in house. Only that they lived in the house for the past 5 out of 8 years as a primary residence. The new purchase price must not exceed $800,000.

Date of Enactment = November 6 2009.

For 2008 Purchases

For home purchases in 2008, the tax credit works as if it is a 15-year no-interest loan up to $7,5000. The total amount of tax credit equals 10% of home purchase price.

For 2009 Purchases

For home purchases in 2009, the tax credit is 10% of purchase price to a maximum of $8,000. On or after November 6 2009, repeat buyers qualify also.

Tax credit:

Applies to taxpayer's principal residence
Reduces taxpayer's tax bill, dollar for dollar
Is fully refundable which means if the taxpayer is eligible and owes no tax, taxpayer will receive a full refund.

When to File For This Tax Credit

First time home buyers who purchase a home in 2009 can claim the tax credit on 2008 tax return by filing for an amended return or 2009 tax return. Credit may not be claimed before closing.

The credit is claimed using Form 5405 with an original or amended tax refund.

To file an amended tax return, use Form 1040X.

Frisco Texas is a city built with careful considerations of providing city parks, hikes and bike trails, sport complexes and master-planned communities for its residents. Search for homes for sale in Frisco and the surrounding cities.

New Listings in Frisco, McKinney and Allen:

Related Articles:

FEATURED LISTINGS


	Meadow Hill Estates Frisco TX Home for Sale 4 bedrooms, 3 baths, approx 3071 sq. ft. $239,900

	3 bedroom + Study home in Hillcrest Estates 3 bedrooms, 2 baths, approx 1925 sq. ft. $179,900

	Panther Creek Estates Home for Sale 3 bedrooms, 2 baths, approx 1894 sq. ft. $178,900

	Hardwood Floor, Granite + More 4 bedrooms, 2 baths, approx 2795 sq. ft. $219,900
» More Listings

QUICK SEARCH

DAILY FIXED MORTGAGE RATES

*Rates subject to change without notice

No Down Payment No Closing Costs Loan available in North Texas

Check out the Affordability-based Zero Down Payment, Zero Closing Cost Loan Program

FRISCO TX HOMES OF THE WEEK

REAL ESTATE MARKET REPORTS

Check out the latest local real estate market reports of Frisco, Plano, McKinney, Allen, Little Elm & Prosper TX.

Be an INFORMED CONSUMER

Texas Information about Brokerage Services

Differences between Buyer Client & Customer

How Real Estate Agents Get Paid

Join Social Media Conversations In

Active Rain is the Top Real Estate Blogging Platform

About Loreena & 3:16 team REALTY

Loreena Yeo - Realtor(R) in Frisco TX | Broker
M.Sc, B.Sc
Direct (214) 783-2210
Fax (214) 231-9018
Email Me Here

>> Learn about Loreena

>> Learn about 3:16 team REALTY

>> Check out what our clients have to say on Zillow Review

3:16 team REALTY
is a proud Member
of Frisco TX Chamber of Commerce

Loreena Yeo is the broker of record of
3:16 team REALTY to practice real estate in Frisco & surrounding cities (State of Texas). Texas Real Estate Broker License Number #9001154.

CLIENT TESTIMONIALS

Read about what our satisfied clients have to say:

When she arrived for our appointment, we went through the normal preliminary procedures and all was fine. Then she surprised us. She had already done most of the work and only needed to take a few pictures of the inside and determine the price that we would be comfortable asking. She also spent a great deal of time explaining to us how the whole sales process work and what we could expect.

Eric & Tomoko Quere, Plano TX

Ultimately, Loreena introduced us to the house we bought--it was not one we found from our own hours of searching web listings--based on the the comments we had made while we visited these different homes. This is a testimony to her ability to listen well and to work proactively on our behalf.

Jenn & Glen Miller, Denton TX

We were completely impressed with Loreena. She helped us find and buy a home in Frisco. We have very high expectations from a realtor and she surpassed them. Knows her market extremely well, not just the technical market pricing data, but the nuances of all the neighborhoods as well. One of the most responsive and professional persons I've met in my entire business career.

Ruth & Jerry Meek, Frisco TX

I just want to thank you again for your help in selling our house. In this tough economy and market, I really didn't expect to get an offer. But you counseled me so well in pricing the house to sell and yet not letting me accept an offer that was too low. I believe we got the best deal we could have. I was so pleased and surprised with what we walked away with.

Sally & Phillip Barnard, Frisco TX


PRIVACY POLICY	TERMS OF USE	Real Estate Markets

		● Milford MA Real Estate

First Time Home Buyer & Repeat Buyer Tax Credit QUESTIONS & ANSWERS Explained

First Time Home Buyer & Repeat Buyer Tax Credit
QUESTIONS & ANSWERS Explained