Ensor & Co., Realtors
  • 512-740-8389
  • Austin MLS Search
    • Search by City
      • Downtown Austin
      • University of Texas Campus Real Estate
      • East Austin
      • Lakeway
      • The Preserve at Lakeway
      • Westlake
      • Bee Cave
      • Dripping Springs
      • Cedar Park
      • Hutto
      • Kyle
      • Leander
      • Round Rock
      • Pflugerville
      • Bastrop
      • Cedar Creek
    • Search by Community
      • Avery Ranch
      • Belterra
      • Belvedere
      • Bryson
      • Circle C
      • Cold Springs
      • Covered Bridge
      • Falconhead
      • River Place
      • Rocky Creek
      • Rough Hollow
      • Serene Hills
      • Shadowglen
      • Star Ranch
      • Steiner Ranch
      • Sweetwater
      • Teravista
      • Tessera on Lake Travis
      • Travisso
      • The Hollows on Lake Travis
  • Ready to Sell a Home?
  • Meet Our Agents
  • Contact Us!
    • Request Info
    • Join Our Team!
    • Helpful Links
    • Free Home Pricing Report
0 Likes
88 Subscribers
0 Followers
Ensor & Co., Realtors
  • 512-740-8389
  • Austin MLS Search
    • Search by City
      • Downtown Austin
      • University of Texas Campus Real Estate
      • East Austin
      • Lakeway
      • The Preserve at Lakeway
      • Westlake
      • Bee Cave
      • Dripping Springs
      • Cedar Park
      • Hutto
      • Kyle
      • Leander
      • Round Rock
      • Pflugerville
      • Bastrop
      • Cedar Creek
    • Search by Community
      • Avery Ranch
      • Belterra
      • Belvedere
      • Bryson
      • Circle C
      • Cold Springs
      • Covered Bridge
      • Falconhead
      • River Place
      • Rocky Creek
      • Rough Hollow
      • Serene Hills
      • Shadowglen
      • Star Ranch
      • Steiner Ranch
      • Sweetwater
      • Teravista
      • Tessera on Lake Travis
      • Travisso
      • The Hollows on Lake Travis
  • Ready to Sell a Home?
  • Meet Our Agents
  • Contact Us!
    • Request Info
    • Join Our Team!
    • Helpful Links
    • Free Home Pricing Report
  • Austin

Tax Credit Extended For Home Buyers

  • November 6, 2009
  • 3 comments
  • 4 minute read
  • 109 views
  • Joseph Ensor
Total
0
Shares
0
0
0

It’s been all over the news & now it is finally OFFICIAL!  The tax credit for first-time homebuyers (FTHBs) has been extended into the first half of 2010.  The program extends the tax credit that was set to expire on November 30, 2009 and it also goes further to include current homeowners. The extension also includes a higher income cap than before.

New Housing Tax Credit Deadlines

The new deadlines for the tax credit are as follows:

1) The Contract must be in effect no later than April 30, 2010.

2)You must close on the Contract no later than June 30, 2010. 
 

Tax Incentives for Current Homeowners

If you are a current homeowner, the tax credit is not the full $8,000, but is a nice $6,500 – as long as the buyer has owned & occupied a primary residence for a period of five consecutive years during the last eight years.

 

Income Qualifications

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

 

Maximum Purchase Price

Qualifying buyers may purchase a property with a maximum sales price of $800,000.

First-Time Homebuyer Tax Credit – Frequently Asked Questions (FAQ)

Here are answers to some commonly asked questions about the tax credit.

 What is a tax credit?

A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.

What is the tax credit for first-time homebuyers (FTHBs)?

An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is eligible for the FTHB tax credit?

Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How do I claim my housing tax credit?

For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).

Can you claim the tax credit in advance of purchasing a property?

No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?

Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.

Are there other restrictions to taking the credit?

Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.

  • You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
  • You do not use the home as your principal residence.
  • You sell your home before the end of the year.
  • You are a nonresident alien.
  • You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
  • Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
  • You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.

Can you buy a home from a step-relative and be eligible for the credit?

Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.

Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?

Yes.

Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?

No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.  If you have any questions that fall outside of the situations here, contact us.

Total
0
Shares
Share 0
Tweet 0
Pin it 0
Related Topics
  • $6500 Tax Credit
  • $8000 Tax Credit
  • First Time Homebuyer
  • Homebuyer Tax Credits Extended
Joseph Ensor

Joseph Ensor is a Texas real estate broker and the owner of Ensor & Co. Realtors. In addition to representing select clients, he works closely with each of his team members to help them build a successful career in selling Austin real estate. A graduate from Arizona State University with a degree in Finance, he enjoys helping his clients and his team members with the mathematical side of each transaction. With over 20 years of experience in real estate investing and sales, he understands the overall complexities involved in a real estate transaction. He uses his expertise to overcome challenging situations and his objective is to work diligently and intelligently toward a positive outcome for his team and for his clients.

Previous Article
  • Real Estate News

Housing Tax Credit Extension Underway for Military Members

  • October 9, 2009
  • Joseph Ensor
View Post
Next Article
  • Austin

Austin Home Sales Increased 38 Percent in October

  • November 19, 2009
  • Joseph Ensor
View Post
Facebook Page
Proof of Successful Sales
  • 10404 Roy Butler Dr, Austin, TX, 78717 in Avery Ranch – SOLD!
    • November 5, 2022
  • 28 Green Terrace Cove, Lakeway, TX 78734 – Exclusive Listing – SOLD!
    • August 30, 2022
  • We Just SOLD 14227 FM 2769, Leander, TX 78641!
    • April 2, 2022
  • SOLD: 1075 Toltec Trl, Georgetown, TX 78626
    • March 22, 2022
  • 27 Green Terrace Cove, Lakeway, TX 78734 – SOLD
    • February 19, 2022
  • 2231 Sciaaca Rd, Spring, TX 77373 – SOLD!
    • November 29, 2021
  • 2007 Encino Cir #B, Austin, TX 78723 – Exclusive Listing of Ensor & Co. – SOLD!
    • October 15, 2021
  • 1413 Crested Butte Way, Georgetown TX 78626 – SOLD in La Conterra!
    • June 5, 2021
  • SOLD: Gorgeous, Modern Condo at 604 N Bluff #204, Austin, TX, 78745
    • April 28, 2021
  • 3604 Easy Money St - Lot For Sale in Grand Mesa at Crystal Falls
    SOLD: 3604 Easy Money St, Leander, TX, 78641 – Lot in Crystal Falls
    • February 11, 2021
  • 2830 Cool River Loop, Round Rock, TX, 78665 – SOLD
    • February 10, 2021
  • 2012 August Jake Dr, Leander, TX 78641 – SOLD!
    • January 28, 2021
  • 15306 Barrie Dr, Austin, TX, 78734 – SOLD!
    • January 27, 2021
  • SOLD! 2008 August Jake Dr, Leander, TX 78641
    • March 30, 2020
  • SOLD: 1801 Cactus Mound Dr, Leander, TX 78641
    • December 9, 2019
  • SOLD: 503 Barolo Cv, Austin, TX, 78738
    • November 8, 2019
  • SOLD: 12320 Granton Cv, Austin, TX, 78754
    • September 10, 2019
  • We Just SOLD 8800 Ambrosia Dr, Austin, TX, 78738!
    • August 27, 2019
  • We Just SOLD 13705 Shadowglade Pl, Manor TX 78653!
    • March 11, 2019
  • SOLD: 6005 Hudson Bend Rd, Austin, TX 78734
    • March 5, 2018
  • We SOLD 5804 Hudson Bend Rd, Austin, TX, 78734!
    • July 22, 2017
  • SOLD: 205 Tavish Trl, Lakeway, TX, 78738
    • July 14, 2017
  • SOLD: 2604 Lehigh Dr, Austin, TX, 78723
    • July 12, 2017
  • SOLD: 212 W Garrett Run, Austin TX 78753
    • June 20, 2017
  • We SOLD 1704 W. St Johns Ave, Austin TX 78757!
    • April 28, 2017

Meet the Team at Ensor & Co.
Becky Belt
Becky is a native Austinite, 8th generation Texan, and Daughter of the…
Jackie Ensor
Born and raised in the "Heart of Texas" (Bryan - College Station),…
Joseph Ensor
Joseph Ensor is a Texas real estate broker and the owner of Ensor &…
Kim Beckham
Kim Beckham is a Realtor located in Bastrop, TX where she has been…
Facebook Messenger Enabled
Tags
$6500 Tax Credit $8000 Tax Credit Austin Events Austin Foreclosures Austin Housing Market Stats Austin Real Estate Avery Ranch Bastrop Cedar Park Events Cedar Park Real Estate Central Austin Real Estate coming soon downtown austin condos Downtown Austin Real Estate East Austin East Austin Homes First Time Homebuyer georgetown golf course homes hardwood floors Homebuyer Tax Credits Extended housing tax credit Just Listed la conterra Lake Travis lakeway listing agent master planned community mueller North Austin open floor plan Photos pool Property Appraisals Recent Sales Data remodeled Round Rock Round Rock homes Search Austin Homes Selling Tips sold South Austin Homes Teravista views waterfront
Most Popular Posts
  • 15516 Prestancia Dr, Austin, TX 78717 – Exclusively Listed For Sale!
    • March 21, 2023
    • 27 views
  • 703 Screech Owl Dr, Pflugerville, TX 78660 – Exclusively Listed For Sale!
    • January 31, 2023
    • 33 views
  • We Just Listed For Sale: 307 Colorado Dr, Cedar Creek, TX, 78612!
    • December 4, 2022
    • 35 views
  • Exclusive Ensor & Co Listing at 2207 Bancroft Lane #705, Houston, TX 77027
    • November 28, 2022
    • 29 views
  • 10404 Roy Butler Dr, Austin, TX, 78717 in Avery Ranch – SOLD!
    • November 5, 2022
    • 153 views
  • 28 Green Terrace Cove, Lakeway, TX 78734 – Exclusive Listing – SOLD!
    • August 30, 2022
    • 118 views
  • 8308 Prairie Rye – Exclusive Listing, For Sale by Ensor & Co
    • August 16, 2022
    • 121 views
  • Exclusive Listing: 3710 Green Trl N, Austin, TX, 78731
    • June 23, 2022
    • 560 views
Ensor & Co., Realtors
  • Privacy Policy
  • TREC Consumer Protection Notice
  • TREC Information About Brokerage Services
  • Office Intranet Login
Austin Real Estate Brokerage

Input your search keywords and press Enter.