I have been getting a lot of inquiries lately regarding whether the Congress intends to extend, for the 3rd time, the provisions of the American Recovery and Reinvestment Act which allow for a “First Time” Homebuyer Tax Credit, and all indicators are that the answer is “NO”. As result, TIME IS RUNNING OUT for those homebuyers who wish to take advantage of this tax credit for purchasing a home for the 1st time or, in many cases, a new home. Under the present form of the Act, a First Time Homebuyer(defined as someone who has not owned a property used as their principal residence for 3 years prior to the purchase) may qualify for a federal tax credit of up to $8,000 and a Current Homebuyer (defined as someone who has owned and lived in their present property for an aggregate of 5 of the last 8 years) may qualify for a federal tax credit of up to $6,500. Unlike a deduction, a tax credit serves as a dollar for dollar savings to the taxpayer. Eligibility is subject to certain conditions and income guidelines.
In order to potentially take advantage of this incredible program, the Homebuyer must have a FULLY RATIFIED CONTRACT by April 30, 2010. The Act does allow settlement to occur after that date (but under no circumstances later than June 30, 2010) provided that the contract is fully ratified before that time.
Please feel free to contact me at john@ctitle.net with any questions about this substantial tax benefit.
John G. Nalls, Esq.
Counselors Title, LLC
4400 Jenifer Street, NW, Suite 200
Washington, DC 20015
202-683-1572 direct
202-686-7223 fax
240-498-8290 cell
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