Mr. Taxman

"The Beatles"

First time home buyer tax credit.

I am sure most of you know that the 1st time home buyers credit has been extended with additional benefits.

For the 1st time buyer, which means you haven’t owned a principal residence in the prior 3 years. The tax credit remains at $8000 and time frame was extended to May 1, 2010, you have to have a signed contract by this time and have until the end of June to close the transaction. The income level for these buyers is now $125,000 annually and for married couples $225,000.

Current home owners

To me this is exciting news, for current home owners who want to buy a new principal residence, you will get up to $6500 in tax credit. You have to have lived in your current home for 5 consecutive years of the last 8 years. Income levels are the same as 1st time home buyers. This means over 70% of all home owners qualify for this program.

Purchase price of properties is now up to $800,000.

This is a real tax credit and can be used to pay income tax due or added to your refund.

This whole thing is a very good thing for home buyers because of the lowered prices of all kinds of properties now on the market.

Jim Bagwell